A boss of Domino's Pizza Group who suggested the UK might have hit pizza saturation while broadening the company into poultry items has been replaced after conflicts with its board.
The former CEO is exiting after a brief tenure in charge, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.
The outgoing executive, who worked for Domino's for a substantial period, had aimed to shift the UK's leading pizza food delivery firm towards poultry-based products, commenting recently there was not “significant expansion” left in the British pizza industry. He observed poultry was the quickest rising food category in the international market.
Sources suggest that there was tension between Rennie and the governance team over his approach and management style, although the company's announcement said he was departing “through mutual consent”.
In the autumn, Domino's introduced its chicken-focused brand – which the former chief referred to as a “major strategic shift” for the company – and is piloting it in 210 outlets in the North West region and Northern Ireland.
While the firm is still going to roll it out across its almost 1,400 stores next year as planned, it views fried chicken as an addition to its main pizza offerings.
Ian Bull, the Domino's chair, commented: “The board believes that there are a number of opportunities to boost expansion and value creation in Domino's core business. We are prioritizing identifying the right chief executive to lead the disciplined execution of that growth strategy.”
Recently, Domino's, which has millions of users in the British Isles, said sales declined by 1.5% in the third quarter. In the summer, it cautioned that the quick-service industry had “become tougher” as it blamed economic uncertainty in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in half-year profits.
Competitors are also experiencing difficulties. Another major chain announced the closing of multiple locations a recently, after the company behind its outlets entered insolvency.
Adapting to customer preferences towards healthier eating, the company has rolled out reduced-calorie products, such as its light base line of bakes below 400 kcal as well as vegan and wheat-free options. A big pepperoni bake has 2,311 kcals. A family cheese pizza has 2,171, while a personal has under 1,000 calories.
The interim chief has been with Domino's since 2021, and had a background at the betting firm William Hill. It is believed that she does not want to take on the CEO position long-term.
Frampton stated: “We have a several ongoing development and efficiency programs that we will be focused on carrying out at speed.”
She added these included ongoing development on the organization's supply chain and new item creation, and its loyalty scheme.
The pizza chain is also lacking a permanent finance director until March 16, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. For now, Richard Snow serves as acting financial officer.
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