Peak Pizza? Domino's Pizza Chief Executive Departs Following Move Towards Chicken.

The boss of Domino's Pizza Group who proposed the United Kingdom might have hit maximum pizza demand while expanding the chain into chicken products has been replaced after tensions with its directors.

Executive Shake-Up

Andrew Rennie is departing after just two years in charge, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a long-term chief.

The outgoing executive, who was with Domino's for more than two decades, had sought to shift the UK's biggest pizza food delivery firm towards fried chicken, stating earlier this month there was not “massive growth” left in the British pizza industry. He said chicken was the fastest-growing menu item in the international market.

Board Tensions

Reports indicate that there was friction between Rennie and the board over his approach and business vision, although the company's release said he was stepping down “through mutual consent”.

New Brand Introduction

In September, the chain unveiled its Chick 'N' Dip product line – which Rennie described as a “significant new phase” 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 nearly 1,400 branches next year as scheduled, it regards chicken products as complementary to its main pizza offerings.

Leadership Comment

The Domino's chair, the company chairman, stated: “Directors think that there are a series of prospects to drive further growth and profitability in our primary operations. We are prioritizing finding the suitable leader to lead the careful implementation of that expansion plan.”

Industry Challenges

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders fell by 1.5 percent in the third quarter. In the summer, it alerted that the quick-service industry had “grown more challenging” as it attributed reduced spending in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in half-year profits.

Rival chains are also experiencing difficulties. Pizza Hut disclosed the shutting of dozens of outlets a month ago, after the company behind its British operations entered insolvency.

Wellness Efforts

Adapting to consumer trends towards healthier eating, Domino's has introduced reduced-calorie items, such as its Thin & Crispy range of pizzas below 400 kcals as well as plant-based and wheat-free options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and was formerly with the betting firm William Hill. It is understood that she is not seeking to occupy the top job on a full-time basis.

She said: “Our team has a several ongoing development and performance initiatives that we will be concentrating on executing at pace.”

Frampton noted these comprised further work on the company's supply chain and menu innovation, and its customer retention initiative.

The pizza chain is also without a permanent finance director until 16 March, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. In the meantime, Snow acts as acting financial officer.