🔗 Share this article

The head of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while broadening the franchise into poultry items has been removed after conflicts with its governing body.

Leadership Transition

Andrew Rennie is exiting after only 24 months in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's searches for a new leader.

The outgoing executive, who worked for Domino's for over 20 years, had aimed to pivot Britain's leading pizza delivery company towards fried chicken, stating earlier this month there was not “significant expansion” left in the British pizza industry. He observed poultry was the quickest rising menu item in the globe.

Governance Tensions

Reports indicate that there was friction between the CEO and the board over his approach and management style, although Domino's release said he was departing “through mutual consent”.

Recent Product Introduction

In the autumn, Domino's launched its Chick 'N' Dip offering – which the former chief called a “significant new phase” for the company – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still planning to expand it across its nearly 1,400 branches in the coming year as intended, it regards fried chicken as a supplement for its primary pizza operations.

Leadership Statement

Bull, the Domino's chair, stated: “Directors think that there are a range of possibilities to enhance value and value creation in the main pizza segment. We are concentrating on finding the suitable leader to direct the careful implementation of that expansion plan.”

Industry Challenges

Recently, Domino's, which has millions of users in the British Isles, said sales declined by 1.5 percent in the third quarter. In August, it alerted that the quick-service industry had “grown more challenging” as it blamed economic uncertainty in the run-up to the budget and rising wage costs for below-target performance and a significant fall in six-month income.

Competitors are also experiencing difficulties. Pizza Hut announced the shutting of dozens of outlets a month ago, after the business behind its outlets faced financial collapse.

Wellness Initiatives

Responding to market shifts towards balanced diets, Domino's has rolled out light items, such as its thin-crust range of pizzas below 400 kcals as well as vegan and wheat-free pizzas. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a small has under 1,000 calories.

Interim Management

The interim chief has been with Domino's since 2021, and was formerly with the betting firm William Hill. It is thought that she prefers not to assume the CEO position permanently.

She commented: “The company has a number of active growth and efficiency programs that we will be focused on implementing at speed.”

Frampton noted these comprised further work on the organization's procurement system and menu innovation, and its customer retention initiative.

Domino's is also without a full-time chief financial officer until March 16, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. Until then, Snow acts as interim finance chief.