🔗 Share this article

A chief executive of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while diversifying the franchise into chicken products has been removed after conflicts with its governing body.

Executive Shake-Up

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

The outgoing executive, who was with Domino's for more than two decades, had sought to pivot the UK's biggest pizza takeaway chain towards poultry-based products, commenting recently there was not “huge potential” left in the British pizza industry. He said poultry was the quickest rising food category in the globe.

Governance Tensions

Reports indicate that there was tension between the CEO and the directors over his approach and direction, although Domino's announcement said he was departing “as a joint decision”.

New Brand Introduction

In the autumn, Domino's unveiled its chicken-focused product line – which Rennie called a “major strategic shift” for the company – and is trialling it in over 200 locations in the North West region and the province.

While the company is still intending to launch it across its almost 1,400 stores in the coming year as scheduled, it considers fried chicken as an addition to its main pizza offerings.

Board Comment

Ian Bull, the Domino's chairman, commented: “Directors think that there are a series of prospects to enhance value and value creation in our primary operations. We are prioritizing identifying the right chief executive to oversee the disciplined execution of that development approach.”

Industry Challenges

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales dipped by 1.5% in the Q3. In the summer, it alerted that the food delivery sector had “intensified” as it attributed economic uncertainty in the period before the budget and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.

Rival chains are also struggling. Another major chain revealed the shutting of multiple locations a last month, after the business behind its British operations faced financial collapse.

Health Efforts

Trying to keep up with consumer trends towards balanced diets, Domino's has introduced reduced-calorie items, such as its Thin & Crispy line of pizzas below 400 calories as well as vegan and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. A big margherita has 2,171 kcal, while a personal has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and was formerly with the gambling company a well-known operator. It is believed that she prefers not to assume the top job permanently.

Frampton stated: “The company has a multiple current expansion and efficiency programs that we will be focused on implementing at speed.”

She added these included additional efforts on the organization's procurement system and product development, and its loyalty scheme.

Domino's is also without a long-term chief financial officer until the spring, when a new appointee joins from the Irish cider and beer maker C&C Group. For now, Richard Snow is acting financial officer.