🔗 Share this article

The chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit peak pizza while diversifying the franchise into poultry items has been replaced after tensions with its board.

Executive Change

Andrew Rennie is leaving after a brief tenure in the top role, and will be replaced on an temporary basis by the company's operations head, Nicola Frampton, while Domino's seeks a long-term chief.

Rennie, who was with the company for over 20 years, had attempted to shift the UK's biggest pizza takeaway chain towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He noted chicken was the most rapidly expanding menu item in the world.

Board Disagreements

It is understood that there was disagreement between Rennie and the governance team over his approach and management style, although the company's official statement said he was leaving “by mutual agreement”.

Recent Product Introduction

In September, Domino's unveiled its Chick 'N' Dip brand – which the former chief called a “bold new chapter” for the company – and is testing it in 210 outlets in the North West region and the province.

While the company is still planning to expand it across its extensive network in the coming year as intended, it regards chicken products as an addition to its primary pizza operations.

Board Statement

Bull, the Domino's chair, said: “The board believes that there are a range of possibilities to enhance value and profitability in the main pizza segment. We are prioritizing selecting the suitable leader to lead the disciplined execution of that growth strategy.”

Market Challenges

Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the latest quarter. In the summer, it cautioned that the takeaway market had “become tougher” as it blamed reduced spending in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a 15 percent decline in interim earnings.

Other pizza operators are also facing challenges. Another major chain announced the shutting of 68 restaurants a month ago, after the business behind its British operations fell into administration.

Health Initiatives

Responding to consumer trends towards healthier eating, Domino's has launched reduced-calorie options, such as its light base line of bakes below 400 calories as well as vegan and wheat-free options. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a individual has 909 kcal.

Acting Leadership

The interim chief has been with Domino's since the recent past, and was formerly with the gaming group a well-known operator. It is understood that she does not want to assume the chief executive role long-term.

She commented: “The company has a several ongoing expansion and efficiency programs that we will be concentrating on implementing at a rapid rate.”

She added these involved additional efforts on the company's logistics network and new item creation, and its loyalty scheme.

Domino's is also lacking a long-term CFO until 16 March, when a new appointee starts from the drinks company C&C Group. In the meantime, Snow is temporary CFO.