🔗 Share this article

A boss of the UK's Domino's Pizza chain who suggested the UK might have hit pizza saturation while diversifying the franchise into poultry items has been removed after disagreements with its directors.

Leadership Transition

Rennie is leaving after only 24 months in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who served at Domino's for over 20 years, had aimed to pivot the UK's leading pizza delivery company towards chicken offerings, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He said chicken was the most rapidly expanding protein in the world.

Governance Disagreements

It is understood that there was friction between the CEO and the governance team over his focus and business vision, although Domino's official statement said he was stepping down “through mutual consent”.

Recent Brand Introduction

In the autumn, the chain unveiled its Chick 'N' Dip offering – which Rennie referred to as a “significant new phase” for the company – and is piloting 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 scheduled, it views fried chicken as a supplement for its primary pizza operations.

Leadership Comment

The Domino's chair, the company chairman, said: “We are confident that there are a range of possibilities to enhance value and value creation in the main pizza segment. We are focused on finding the right chief executive to oversee the disciplined execution of that growth strategy.”

Market Challenges

Recently, Domino's, which has a substantial customer base in the British Isles, said sales fell by 1.5% in the latest quarter. In the summer, it alerted that the takeaway market had “grown more challenging” as it attributed weaker consumer confidence in the run-up to the government announcement and higher payroll outlays for below-target performance and a significant fall in half-year profits.

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

Health Efforts

Responding to consumer trends towards better nutrition, the company has rolled out reduced-calorie options, such as its Thin & Crispy line of bakes below 400 calories as well as meat-free and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171 kcal, while a individual has 909 calories.

Interim Management

Frampton has been with Domino's since the recent past, and had a background at the betting firm William Hill. It is believed that she does not want to assume the CEO position on a full-time basis.

She commented: “The company has a multiple ongoing development and performance initiatives that we will be focused on implementing at a rapid rate.”

Frampton noted these included ongoing development on the company's logistics network and new item creation, and its loyalty scheme.

Domino's is also without a permanent CFO until 16 March, when a new appointee joins from the beverage producer C&C Group. For now, Richard Snow is temporary CFO.