Pizza Market Saturation? Domino's CEO Steps Down After Shift Towards Fried Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit peak pizza while broadening the franchise into fried chicken has been replaced after disagreements with its governing body.
Leadership Shake-Up
The former CEO is leaving after only 24 months in charge, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while Domino's seeks a long-term chief.
The outgoing executive, who worked for the company for more than two decades, had sought to shift Britain's biggest pizza delivery company towards chicken offerings, remarking in a recent interview there was not “massive growth” left in the British pizza industry. He observed poultry was the fastest-growing food category in the international market.
Board Disagreements
It is understood that there was disagreement between the CEO and the governance team over his strategy and direction, although the company's official statement said he was leaving “as a joint decision”.
Recent Brand Launch
In September, the chain unveiled its Chick 'N' Dip brand – which Rennie described as a “bold new chapter” for the group – and is piloting it in select stores in the north-west of England and the province.
While the firm is still planning to expand it across its nearly 1,400 branches in the coming year as scheduled, it views fried chicken as a supplement for its core pizza business.
Leadership Statement
The Domino's chair, the Domino's chair, said: “We are confident that there are a number of opportunities to drive further growth and value creation in our primary operations. We are focused on identifying the ideal CEO to oversee the careful implementation of that expansion plan.”
Market Challenges
Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said sales fell by one and a half percent in the latest quarter. In August, it warned that the takeaway market had “intensified” as it blamed reduced spending in the lead-up to the budget and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.
Competitors are also facing challenges. Pizza Hut announced the shutting of multiple locations a last month, after the business behind its British operations entered insolvency.
Wellness Initiatives
Responding to consumer trends towards healthier eating, Domino's has introduced light options, such as its Thin & Crispy selection of pizzas below 400 calories as well as vegan and wheat-free options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has over 2,100, while a small has 909 kcal.
Interim Leadership
Nicola Frampton has been with the company since the recent past, and was formerly with the gambling company a well-known operator. It is understood that she does not want to assume the chief executive role on a full-time basis.
Frampton stated: “The company has a multiple current development and operational projects that we will be focused on carrying out at a rapid rate.”
She said these comprised ongoing development on the company's supply chain and menu innovation, and its rewards program.
The pizza chain is also without a long-term finance director until the spring, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as interim finance chief.