🔗 Share this article

The chief executive of Domino's Pizza Group who suggested the United Kingdom might have hit pizza saturation while expanding the franchise into poultry items has been removed after conflicts with its governing body.

Executive Shake-Up

The former CEO is departing after just two years in charge, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who was with the company for a substantial period, had aimed to pivot Britain's biggest pizza delivery company towards fried chicken, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He observed poultry was the fastest-growing protein in the globe.

Governance Friction

It is understood that there was disagreement between Rennie and the directors over his approach and business vision, although the company's release said he was departing “through mutual consent”.

Recent Brand Introduction

In September, the chain launched its Chick 'N' Dip brand – which the former chief called a “significant new phase” for the group – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the firm is still intending to launch it across its almost 1,400 stores in the coming year as planned, it views chicken products as a supplement for its main pizza offerings.

Board Comment

Ian Bull, the Domino's chairman, said: “We are confident that there are a range of possibilities to boost expansion and performance improvement in our primary operations. We are focused on identifying the ideal CEO to direct the careful implementation of that expansion plan.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales dipped by one and a half percent in the Q3. In the summer, it cautioned that the quick-service industry had “grown more challenging” as it blamed economic uncertainty in the period before the budget and rising wage costs for below-target performance and a 15 percent decline in interim earnings.

Rival chains are also struggling. Pizza Hut announced the closure of 68 restaurants a month ago, after the business behind its outlets faced financial collapse.

Wellness Initiatives

Adapting to market shifts towards better nutrition, the company has introduced lower-calorie items, such as its light base selection of pizzas below 400 calories as well as vegan and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a individual has under 1,000 calories.

Acting Leadership

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 occupy the CEO position long-term.

Frampton stated: “Our team has a number of ongoing expansion and efficiency programs that we will be concentrating on carrying out at pace.”

Frampton noted these involved further work on the organization's logistics network and product development, and its customer retention initiative.

Domino's is also without a long-term CFO until the spring, when Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow acts as interim finance chief.