Has Pizza Peaked? Domino's Pizza Leader Exits Following Shift Towards Fried Chicken.
The boss of Domino's Pizza Group who proposed the United Kingdom might have reached peak pizza while broadening the company into poultry items has been ousted after disagreements with its directors.
Leadership Transition
Andrew Rennie is leaving after a brief tenure in charge, and will be succeeded on an temporary basis by the organization's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.
The outgoing executive, who worked for the company for a substantial period, had sought to redirect Britain's largest pizza food delivery firm towards poultry-based products, remarking earlier this month there was not “huge potential” left in the British pizza industry. He noted poultry was the most rapidly expanding menu item in the globe.
Board Disagreements
Sources suggest that there was friction between Rennie and the directors over his focus and business vision, although the company's official statement said he was departing “as a joint decision”.
New Product Introduction
In September, Domino's unveiled its chicken-focused brand – which the former chief referred to as a “bold new chapter” for the organization – and is piloting it in over 200 locations in the North West region and the province.
While the firm is still intending to launch it across its extensive network next year as planned, it considers fried chicken as an addition to its main pizza offerings.
Board Statement
Ian Bull, the Domino's chair, commented: “The board believes that there are a range of possibilities to boost expansion and value creation in Domino's core business. We are focused on finding the ideal CEO to lead the systematic rollout of that development approach.”
Market Difficulties
In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said orders fell by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the period before the budget and rising wage costs for weaker-than-expected sales and a 15 percent decline in interim earnings.
Other pizza operators are also struggling. Pizza Hut announced the closure of dozens of outlets a recently, after the business behind its outlets entered insolvency.
Health Initiatives
Trying to keep up with market shifts towards balanced diets, Domino's has launched lower-calorie options, such as its light base range of bakes below 400 kcals as well as plant-based and gluten-free options. A family-sized pepperoni has over 2,300 kcal. A big margherita has over 2,100, while a small has 909 kcal.
Acting Leadership
Frampton has been with the company since 2021, and was formerly with the betting firm a well-known operator. It is thought that she is not seeking to take on the CEO position on a full-time basis.
She said: “We have a number of ongoing development and operational projects that we will be concentrating on implementing at speed.”
She said these comprised further work on the company's procurement system and menu innovation, and its rewards program.
Domino's is also lacking a long-term finance director until the spring, when Andy Andrea comes aboard from the drinks company C&C Group. For now, Snow is interim finance chief.