🔗 Share this article

The head of Domino's Pizza Group who suggested the UK might have reached maximum pizza demand while diversifying the chain into poultry items has been replaced after conflicts with its governing body.

Leadership Transition

Andrew Rennie is departing after a brief tenure in leadership, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a permanent CEO.

The outgoing executive, who served at Domino's for more than two decades, had sought to redirect the UK's leading pizza food delivery firm towards fried chicken, commenting earlier this month there was not “massive growth” left in the UK's pizza market. He noted poultry was the fastest-growing menu item in the globe.

Board Friction

Reports indicate that there was friction between the CEO and the governance team over his strategy and management style, although the company's release said he was departing “by mutual agreement”.

New Brand Launch

In September, the chain introduced its Chick 'N' Dip product line – which the former chief described as a “significant new phase” for the company – and is testing it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its nearly 1,400 branches in the coming year as intended, it regards fried chicken as an addition to its core pizza business.

Board Statement

The Domino's chair, the Domino's chairman, stated: “The board believes that there are a range of possibilities to enhance value and performance improvement in the main pizza segment. We are focused on selecting the right chief executive to lead the systematic rollout of that growth strategy.”

Market Difficulties

In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5% in the third quarter. In August, it warned that the food delivery sector had “intensified” as it attributed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for below-target performance and a 15% drop in six-month income.

Rival chains are also experiencing difficulties. Another major chain revealed the shutting of 68 restaurants a last month, after the firm behind its British operations fell into administration.

Health Initiatives

Adapting to customer preferences towards healthier eating, Domino's has rolled out lower-calorie items, such as its light base range of bakes below 400 calories as well as meat-free and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has over 2,100, while a personal has 909 kcal.

Interim Management

The interim chief has been with the company since the recent past, and had a background at the betting firm William Hill. It is believed that she does not want to take on the chief executive role permanently.

She commented: “The company has a number of ongoing development and operational projects that we will be dedicated to carrying out at a rapid rate.”

Frampton noted these included further work on the organization's procurement system and menu innovation, and its customer retention initiative.

The pizza chain is also lacking a long-term chief financial officer until the spring, when a new appointee comes aboard from the Irish cider and beer maker a well-known firm. For now, Snow serves as interim finance chief.