🔗 Share this article

The head of Domino's Pizza Group who suggested the United Kingdom might have hit maximum pizza demand while broadening the chain into poultry items has been replaced after disagreements with its governing body.

Leadership Transition

Rennie is departing after a brief tenure in the top role, and will be replaced on an interim basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a new leader.

Rennie, who worked for the company for more than two decades, had sought to redirect the UK's largest pizza food delivery firm towards chicken offerings, commenting recently there was not “significant expansion” left in the British pizza industry. He observed chicken was the quickest rising protein in the world.

Board Disagreements

Sources suggest that there was friction between Rennie and the directors over his approach and business vision, although Domino's announcement said he was leaving “through mutual consent”.

New Product Launch

In September, the chain launched its Chick 'N' Dip offering – which the former chief described as a “bold new chapter” for the group – and is trialling it in over 200 locations in the North West region and the province.

While the company is still planning to expand it across its extensive network next year as intended, it considers chicken products as an addition to its core pizza business.

Board Comment

Ian Bull, the company chairman, stated: “The board believes that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are prioritizing finding the suitable leader to direct the careful implementation of that expansion plan.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said sales declined by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “intensified” 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.

Rival chains are also struggling. Pizza Hut announced the closure of 68 restaurants a month ago, after the company behind its outlets fell into administration.

Wellness Initiatives

Trying to keep up with market shifts towards better nutrition, the company has introduced lower-calorie items, such as its Thin & Crispy range of pizzas below 400 kcal as well as vegan and gluten-free options. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a personal has under 1,000 calories.

Interim Management

Nicola Frampton has been with the company since the recent past, and was formerly with the gaming group William Hill. It is believed that she does not want to occupy the CEO position on a full-time basis.

Frampton stated: “Our team has a multiple ongoing development and performance initiatives that we will be dedicated to implementing at pace.”

She said these included further work on the organization's supply chain and menu innovation, and its customer retention initiative.

Domino's is also lacking a permanent chief financial officer until the spring, when a new appointee starts from the Irish cider and beer maker a well-known firm. In the meantime, Snow acts as temporary CFO.