🔗 Share this article

A head of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while broadening the company into poultry items has been ousted after conflicts with its board.

Leadership Transition

Andrew Rennie is leaving after just two years in leadership, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a long-term chief.

Rennie, who worked for Domino's for a substantial period, had aimed to pivot the UK's biggest pizza delivery company towards poultry-based products, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He observed poultry was the quickest rising food category in the international market.

Governance Disagreements

Sources suggest that there was tension between Rennie and the directors over his approach and direction, although the company's official statement said he was stepping down “through mutual consent”.

Recent Brand Launch

In the autumn, Domino's introduced its chicken-focused offering – which Rennie described as a “bold new chapter” for the organization – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the firm is still intending to launch it across its almost 1,400 stores in the coming year as intended, it regards chicken products as complementary to its core pizza business.

Leadership Comment

Ian Bull, the company chair, stated: “We are confident that there are a series of prospects to enhance value and value creation in Domino's core business. We are concentrating on identifying the suitable leader to lead the systematic rollout of that expansion plan.”

Market Difficulties

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions dipped by 1.5% 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 higher payroll outlays for below-target performance and a 15% drop in half-year profits.

Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closure of multiple locations a recently, after the company behind its outlets faced financial collapse.

Wellness Efforts

Responding to consumer trends towards better nutrition, Domino's has rolled out lower-calorie products, such as its Thin & Crispy range of bakes below 400 kcal as well as meat-free and wheat-free options. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a small has under 1,000 calories.

Acting Management

Frampton has been with Domino's since 2021, and had a background at the gaming group William Hill. It is believed that she does not want to take on the CEO position on a full-time basis.

She said: “Our team has a number of ongoing growth and operational projects that we will be dedicated to implementing at a rapid rate.”

Frampton noted these included additional efforts on the company's supply chain and menu innovation, and its customer retention initiative.

The pizza chain is also lacking a permanent CFO until 16 March, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as temporary CFO.