🔗 Share this article

The boss of Domino's Pizza Group who proposed the United Kingdom might have reached maximum pizza demand while diversifying the company into poultry items has been removed after tensions with its governing body.

Executive Change

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

Rennie, who worked for the company for a substantial period, had aimed to pivot the UK's leading pizza food delivery firm towards chicken offerings, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He noted poultry was the fastest-growing food category in the international market.

Governance Tensions

Reports indicate that there was friction between Rennie and the directors over his strategy and business vision, although Domino's announcement said he was leaving “as a joint decision”.

New Product Introduction

In the autumn, Domino's unveiled its poultry brand – which the former chief referred to as a “major strategic shift” for the group – and is trialling it in over 200 locations in the North West region and Northern Ireland.

While the business is still planning to expand it across its nearly 1,400 branches next year as planned, it regards fried chicken as an addition to its main pizza offerings.

Leadership Comment

Ian Bull, the company chairman, commented: “The board believes that there are a number of opportunities to boost expansion and value creation in our primary operations. We are concentrating on finding the ideal CEO to lead the disciplined execution of that development approach.”

Market Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions fell by 1.5 percent in the Q3. In August, it cautioned that the takeaway market had “become tougher” as it attributed reduced spending in the period before the government announcement and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closing of 68 restaurants a recently, after the company behind its UK venues faced financial collapse.

Health Initiatives

Trying to keep up with consumer trends towards better nutrition, the company has rolled out lower-calorie products, such as its light base selection of bakes below 400 calories as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 kcal.

Interim Leadership

The interim chief has been with the company since the recent past, and previously worked for the gaming group William Hill. It is understood that she prefers not to assume the CEO position on a full-time basis.

She said: “We have a number of active expansion and operational projects that we will be focused on carrying out at a rapid rate.”

Frampton noted these included additional efforts on the company's supply chain and product development, and its rewards program.

The pizza chain is also without a permanent CFO until 16 March, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow acts as temporary CFO.