🔗 Share this article

A head of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while broadening the company into fried chicken has been replaced after tensions with its board.

Executive Change

Andrew Rennie is departing after just two years in charge, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while the pizza giant seeks a long-term chief.

Rennie, who was with Domino's for over 20 years, had sought to redirect Britain's biggest pizza food delivery firm towards fried chicken, remarking in a recent interview there was not “huge potential” left in the UK's pizza market. He noted poultry was the fastest-growing protein in the globe.

Governance Friction

It is understood that there was tension between Rennie and the directors over his strategy and direction, although the company's official statement said he was stepping down “through mutual consent”.

New Product Launch

In September, the chain introduced its Chick 'N' Dip offering – which Rennie called a “bold new chapter” for the group – and is trialling it in 210 outlets 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 next year as planned, it views chicken products as a supplement for its main pizza offerings.

Leadership Statement

The Domino's chair, the company chair, said: “We are confident that there are a series of prospects to boost expansion and value creation in the main pizza segment. We are focused on selecting the right chief executive to oversee the systematic rollout of that growth strategy.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said orders fell by 1.5% in the third quarter. In August, it warned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.

Rival chains are also struggling. Another major chain revealed the closing of 68 restaurants a recently, after the company behind its outlets entered insolvency.

Wellness Efforts

Responding to customer preferences towards healthier eating, the company has rolled out lower-calorie options, such as its Thin & Crispy range of pizzas below 400 calories as well as plant-based and gluten-free options. A large pepperoni pizza has 2,311 calories. A big margherita has over 2,100, while a individual has 909 calories.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and previously worked for the betting firm William Hill. It is believed that she is not seeking to occupy the CEO position long-term.

She said: “We have a number of ongoing development and performance initiatives that we will be concentrating on implementing at pace.”

She added these comprised ongoing development on the company's supply chain and product development, and its customer retention initiative.

Domino's is also without a permanent chief financial officer until the spring, when Andrea starts from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as temporary CFO.