🔗 Share this article

The chief executive of the UK's Domino's Pizza chain who suggested the UK might have reached maximum pizza demand while broadening the chain into chicken products has been removed after conflicts with its directors.

Leadership Shake-Up

Andrew Rennie is departing after just two years in charge, and will be replaced on an interim basis by the company's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

The outgoing executive, who worked for Domino's for more than two decades, had sought to pivot the UK's largest pizza food delivery firm towards poultry-based products, remarking in a recent interview there was not “significant expansion” left in the UK's pizza market. He said chicken was the quickest rising protein in the international market.

Governance Tensions

Sources suggest that there was tension between the CEO and the governance team over his approach and management style, although the company's official statement said he was departing “by mutual agreement”.

Recent Brand Introduction

In September, Domino's introduced its poultry product line – which the former chief referred to as a “significant new phase” for the group – and is testing it in select stores in the North West region and the province.

While the business is still going to roll it out across its almost 1,400 stores next year as scheduled, it regards fried chicken as complementary to its primary pizza operations.

Board Comment

Ian Bull, the company chair, commented: “The board believes that there are a number of opportunities to enhance value and value creation in the main pizza segment. We are concentrating on finding the ideal CEO to direct the careful implementation of that growth strategy.”

Market Difficulties

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said transactions dipped by 1.5% in the latest quarter. In the summer, it warned that the food delivery sector had “become tougher” as it attributed reduced spending in the run-up to the budget and higher payroll outlays for weaker-than-expected sales and a significant fall in half-year profits.

Other pizza operators are also facing challenges. Another major chain disclosed the closing of dozens of outlets a month ago, after the company behind its outlets faced financial collapse.

Health Efforts

Adapting to consumer trends towards balanced diets, Domino's has launched reduced-calorie options, such as its Thin & Crispy line of pizzas below 400 calories as well as vegan and gluten-free pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.

Interim Management

The interim chief has been with the company since 2021, and previously worked for the gaming group William Hill. It is understood that she does not want to occupy the top job long-term.

She said: “Our team has a several current development and performance initiatives that we will be concentrating on implementing at a rapid rate.”

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

Domino's is also in need of a full-time finance director until 16 March, when Andrea comes aboard from the beverage producer a well-known firm. For now, Snow serves as temporary CFO.