🔗 Share this article

A chief executive of Domino's Pizza Group who indicated the UK might have reached pizza saturation while expanding the franchise into chicken products has been ousted after disagreements with its governing body.

Executive Shake-Up

Rennie is exiting after only 24 months in the top role, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.

Rennie, who served at the company for over 20 years, had aimed to redirect the UK's leading pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “huge potential” left in the British pizza industry. He observed chicken was the most rapidly expanding food category in the world.

Board Disagreements

Sources suggest that there was friction between Rennie and the board over his focus and management style, although Domino's release said he was stepping down “through mutual consent”.

New Brand Launch

In the autumn, Domino's launched its poultry offering – which the former chief described as a “major strategic shift” for the group – and is testing it in over 200 locations in the north-west of England and the province.

While the firm is still intending to launch it across its nearly 1,400 branches next year as scheduled, it considers chicken products as an addition to its main pizza offerings.

Leadership Comment

The Domino's chair, the company chair, commented: “Directors think that there are a series of prospects to drive further growth and performance improvement in Domino's core business. We are prioritizing identifying the suitable leader to oversee the disciplined execution of that expansion plan.”

Market Challenges

In the latest update, Domino's, which has millions of users in the British Isles, said orders dipped 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 budget and rising wage costs for below-target performance and a 15% drop in half-year profits.

Competitors are also experiencing difficulties. Pizza Hut disclosed the closing of dozens of outlets a month ago, after the firm behind its British operations faced financial collapse.

Wellness Initiatives

Trying to keep up with consumer trends towards better nutrition, Domino's has rolled out lower-calorie products, such as its Thin & Crispy line of bakes below 400 kcals as well as meat-free and gluten-free options. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a small has 909 kcal.

Acting Management

The interim chief has been with the company since the recent past, and previously worked for the gaming group a well-known operator. It is thought that she does not want to assume the CEO position on a full-time basis.

She said: “We have a number of ongoing development and operational projects that we will be concentrating on carrying out at speed.”

Frampton noted these involved ongoing development on the organization's supply chain and product development, and its customer retention initiative.

The pizza chain is also lacking a full-time finance director until the spring, when a new appointee joins from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow is temporary CFO.