Peak Pizza? Domino's Pizza Chief Executive Exits Following Shift Towards Chicken.
The boss of Domino's Pizza Group who proposed the United Kingdom might have hit maximum pizza demand while broadening the company into fried chicken has been ousted after conflicts with its board.
Executive Shake-Up
Andrew Rennie is leaving after just two years in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a long-term chief.
The outgoing executive, who worked for the company for over 20 years, had aimed to shift Britain's largest pizza food delivery firm towards fried chicken, stating earlier this month there was not “massive growth” left in the British pizza industry. He observed chicken was the fastest-growing protein in the globe.
Board Disagreements
Sources suggest that there was disagreement between the CEO and the governance team over his approach and business vision, although Domino's official statement said he was stepping down “through mutual consent”.
Recent Product Introduction
In September, the chain launched its chicken-focused brand – which the former chief referred to as a “major strategic shift” for the group – and is piloting it in 210 outlets in the north-west of England and the province.
While the business is still planning to expand it across its extensive network next year as planned, it considers chicken products as complementary to its main pizza offerings.
Board Statement
Ian Bull, the company chairman, said: “Directors think that there are a series of prospects to enhance value and performance improvement in Domino's core business. We are prioritizing identifying the ideal CEO to oversee the disciplined execution of that development approach.”
Industry Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales dipped by one and a half percent in the latest quarter. In August, it warned that the quick-service industry had “become tougher” as it attributed reduced spending in the run-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in half-year profits.
Other pizza operators are also struggling. Pizza Hut disclosed the shutting of multiple locations a last month, after the firm behind its outlets fell into administration.
Health Efforts
Adapting to customer preferences towards healthier eating, the company has introduced reduced-calorie products, such as its Thin & Crispy range of pizzas below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a personal has 909 kcal.
Acting Management
The interim chief has been with the company since the recent past, and had a background at the gambling company William Hill. It is believed that she does not want to occupy the top job on a full-time basis.
She said: “Our team has a several active development and operational projects that we will be focused on executing at pace.”
She said these involved ongoing development on the company's procurement system and product development, and its rewards program.
The pizza chain is also in need of a permanent CFO until the spring, when Andy Andrea starts from the Irish cider and beer maker C&C Group. For now, Snow acts as interim finance chief.