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Has Pizza Peaked? Domino's Pizza Leader Departs After Pivot Towards Chicken.
A boss of Domino's Pizza Group who proposed the UK might have hit peak pizza while broadening the franchise into fried chicken has been removed after conflicts with its directors.
Leadership Change
Rennie is leaving after just two years in leadership, and will be replaced on an interim basis by the company's operations head, Frampton, while the pizza giant searches for a permanent CEO.
Rennie, who was with Domino's for a substantial period, had aimed to pivot the UK's biggest pizza takeaway chain towards fried chicken, commenting recently there was not “huge potential” left in the pizza sector in the UK. He said chicken was the fastest-growing protein in the globe.
Governance Friction
Sources suggest that there was tension between Rennie and the governance team over his strategy and management style, although the company's official statement said he was stepping down “by mutual agreement”.
Recent Brand Launch
In September, the chain unveiled its chicken-focused product line – which Rennie called a “major strategic shift” for the company – and is testing it in select stores in the north-west of England and the province.
While the company is still going to roll it out across its almost 1,400 stores in the coming year as intended, it views chicken products as a supplement for its main pizza offerings.
Board Comment
Bull, the company chairman, commented: “The board believes that there are a series of prospects to drive further growth and value creation in our primary operations. We are concentrating on identifying the ideal CEO to lead the careful implementation of that growth strategy.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said sales declined by 1.5 percent in the third quarter. In August, it alerted that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the lead-up to the government announcement and higher payroll outlays for disappointing revenue and a 15 percent decline in interim earnings.
Competitors are also experiencing difficulties. Another major chain announced the shutting of multiple locations a last month, after the company behind its British operations fell into administration.
Wellness Initiatives
Adapting to market shifts towards healthier eating, the company has rolled out light products, such as its thin-crust range of bakes below 400 kcal as well as vegan and wheat-free options. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.
Interim Leadership
The interim chief has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is understood that she does not want to occupy the chief executive role on a full-time basis.
She commented: “We have a number of current growth and performance initiatives that we will be concentrating on implementing at speed.”
She added these involved ongoing development on the organization's procurement system and product development, and its rewards program.
Domino's is also without a permanent CFO until the spring, when a new appointee comes aboard from the drinks company a well-known firm. In the meantime, Richard Snow is acting financial officer.
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