🔗 Share this article

The chief executive of Domino's Pizza Group who proposed the United Kingdom might have hit maximum pizza demand while expanding the franchise into poultry items has been ousted after tensions with its governing body.

Leadership Transition

Andrew Rennie is leaving after a brief tenure in the top role, and will be succeeded on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a long-term chief.

The outgoing executive, who was with Domino's for more than two decades, had aimed to redirect the UK's largest pizza food delivery firm towards chicken offerings, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He observed chicken was the most rapidly expanding protein in the international market.

Governance Tensions

Sources suggest that there was friction between the CEO and the board over his focus and business vision, although Domino's release said he was departing “by mutual agreement”.

New Brand Introduction

In September, Domino's launched its chicken-focused brand – which Rennie described as a “major strategic shift” for the organization – and is trialling it in select stores in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its almost 1,400 stores next year as planned, it views fried chicken as a supplement for its core pizza business.

Board Statement

The Domino's chair, the company chairman, commented: “Directors think that there are a number of opportunities to enhance value and value creation in our primary operations. We are focused on selecting the right chief executive to oversee the careful implementation of that expansion plan.”

Industry Challenges

Recently, Domino's, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the Q3. In the summer, it warned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a significant fall in half-year profits.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closure of 68 restaurants a month ago, after the business behind its outlets faced financial collapse.

Health Efforts

Responding to consumer trends towards healthier eating, the company has rolled out light options, such as its light base selection of bakes below 400 kcals as well as vegan and wheat-free options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has over 2,100, while a small has under 1,000 calories.

Interim Management

Frampton has been with the company since the recent past, and was formerly with the betting firm a well-known operator. It is thought that she prefers not to take on the top job on a full-time basis.

She said: “We have a multiple active development and efficiency programs that we will be dedicated to carrying out at speed.”

She said these comprised further work on the company's logistics network and menu innovation, and its rewards program.

Domino's is also without a long-term chief financial officer until 16 March, when Andrea comes aboard from the beverage producer a well-known firm. For now, Snow serves as temporary CFO.