🔗 Share this article

The head of the UK's Domino's Pizza chain who indicated the UK might have reached maximum pizza demand while broadening the company into fried chicken has been removed after conflicts with its board.

Leadership Change

Rennie is departing after a brief tenure in charge, and will be succeeded on an temporary basis by the organization's operations head, Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who was with Domino's for more than two decades, had sought to pivot Britain's leading pizza takeaway chain towards poultry-based products, remarking recently there was not “huge potential” left in the UK's pizza market. He said poultry was the fastest-growing menu item in the world.

Governance Friction

It is understood that there was disagreement between the CEO and the governance team over his strategy and management style, although the company's release said he was departing “through mutual consent”.

New Brand Introduction

In the autumn, the chain unveiled its chicken-focused product line – which the former chief called a “major strategic shift” for the organization – and is trialling it in select stores in the north-west of England and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it regards chicken products as complementary to its primary pizza operations.

Board Comment

Bull, the Domino's chair, said: “Directors think that there are a range of possibilities to drive further growth and performance improvement in Domino's core business. We are prioritizing identifying the suitable leader to oversee the careful implementation of that expansion plan.”

Industry Difficulties

In the latest update, Domino's, which has a substantial customer base in the British Isles, said sales dipped by 1.5% in the third quarter. In the summer, it cautioned that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in interim earnings.

Rival chains are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a recently, after the firm behind its UK venues entered insolvency.

Health Efforts

Trying to keep up with consumer trends towards better nutrition, the company has introduced reduced-calorie items, such as its Thin & Crispy line of bakes below 400 kcals as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a individual has 909 calories.

Acting Management

Frampton has been with Domino's since 2021, and had a background at the gaming group a well-known operator. It is thought that she prefers not to occupy the chief executive role long-term.

She said: “Our team has a several ongoing expansion and efficiency programs that we will be concentrating on carrying out at speed.”

She added these included additional efforts on the company's logistics network and new item creation, and its loyalty scheme.

Domino's is also without a long-term CFO until 16 March, when a new appointee starts from the beverage producer a well-known firm. Until then, Snow is temporary CFO.