🔗 Share this article

A chief executive of Domino's Pizza Group who proposed the United Kingdom might have hit peak pizza while diversifying the franchise into chicken products has been replaced after disagreements with its board.

Executive Change

The former CEO is exiting after only 24 months in leadership, and will be succeeded on an temporary basis by the organization's chief operating officer, Frampton, while Domino's seeks a permanent CEO.

Rennie, who served at the company for over 20 years, had aimed to pivot the UK's biggest pizza takeaway chain towards chicken offerings, commenting earlier this month there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the quickest rising menu item in the globe.

Governance Friction

Reports indicate that there was tension between Rennie and the board over his strategy and business vision, although Domino's announcement said he was stepping down “by mutual agreement”.

New Product Launch

In September, the chain launched its Chick 'N' Dip product line – which Rennie 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 company is still planning to expand it across its nearly 1,400 branches next year as scheduled, it views chicken products as a supplement for its main pizza offerings.

Leadership Statement

Bull, the company chair, stated: “The board believes that there are a range of possibilities to boost expansion and value creation in our primary operations. We are concentrating on identifying the suitable leader to lead the careful implementation of that growth strategy.”

Market Difficulties

In the latest update, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said sales fell by 1.5% in the Q3. In August, it cautioned that the takeaway market had “become tougher” as it attributed weaker consumer confidence in the period before the government announcement and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Rival chains are also struggling. Another major chain announced the shutting of 68 restaurants a month ago, after the business behind its UK venues faced financial collapse.

Wellness Initiatives

Adapting to customer preferences towards balanced diets, the company has introduced reduced-calorie items, such as its light base selection of pizzas below 400 kcals as well as vegan and wheat-free pizzas. A family-sized pepperoni has 2,311 kcals. A big margherita has 2,171, while a individual has 909 kcal.

Acting Management

Nicola Frampton has been with the company since the recent past, and had a background at the betting firm a well-known operator. It is believed that she prefers not to occupy the chief executive role on a full-time basis.

She commented: “Our team has a number of ongoing development and operational projects that we will be focused on executing at pace.”

She added these comprised ongoing development on the organization's supply chain and new item creation, and its rewards program.

The pizza chain is also without a long-term chief financial officer until 16 March, when Andrea joins from the drinks company C&C Group. In the meantime, Richard Snow is acting financial officer.