🔗 Share this article

The head of Domino's Pizza Group who indicated the United Kingdom might have hit pizza saturation while expanding the franchise into chicken products has been ousted after tensions with its board.

Executive Shake-Up

The former CEO is leaving after a brief tenure in leadership, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while Domino's looks for a permanent CEO.

Rennie, who worked for Domino's for over 20 years, had aimed to redirect the UK's biggest pizza food delivery firm towards fried chicken, remarking recently there was not “huge potential” left in the UK's pizza market. He noted poultry was the quickest rising protein in the world.

Board Friction

Sources suggest that there was disagreement between Rennie and the directors over his strategy and direction, although the company's announcement said he was departing “by mutual agreement”.

New Brand Launch

In the autumn, Domino's launched its poultry offering – which the former chief described as a “significant new phase” for the group – and is piloting it in 210 outlets in the north-west of England and the province.

While the business is still planning to expand it across its nearly 1,400 branches in the coming year as scheduled, it views chicken products as an addition to its primary pizza operations.

Board Statement

The Domino's chair, the Domino's chair, commented: “The board believes that there are a range of possibilities to boost expansion and performance improvement in the main pizza segment. We are focused on selecting the right chief executive to direct the systematic rollout of that development approach.”

Market Challenges

Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said orders dipped by one and a half percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the budget and higher payroll outlays for below-target performance and a significant fall in interim earnings.

Competitors are also experiencing difficulties. Another major chain disclosed the shutting of multiple locations a month ago, after the company behind its British operations entered insolvency.

Health Initiatives

Responding to customer preferences towards balanced diets, Domino's has introduced reduced-calorie products, such as its Thin & Crispy range of bakes below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a individual has 909 kcal.

Acting Leadership

Frampton has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is understood that she prefers not to occupy the top job permanently.

She commented: “We have a number of current development and operational projects that we will be focused on carrying out at speed.”

She said these involved ongoing development on the organization's logistics network and product development, and its customer retention initiative.

The pizza chain is also in need of a permanent CFO until March 16, when Andy Andrea starts from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.