Peak Pizza? Domino's CEO Departs Following Shift Into Chicken.

A head of Domino's Pizza Group who proposed the UK might have hit peak pizza while expanding the company into chicken products has been ousted after conflicts with its board.

Leadership Change

Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the organization's operations head, Frampton, while Domino's seeks a new leader.

Rennie, who served at the company for a substantial period, had aimed to redirect the UK's leading pizza takeaway chain towards fried chicken, commenting recently there was not “huge potential” left in the British pizza industry. He said chicken was the fastest-growing menu item in the international market.

Board Tensions

Sources suggest that there was disagreement between Rennie and the directors over his strategy and management style, although the company's official statement said he was leaving “as a joint decision”.

Recent Product Launch

In the autumn, Domino's unveiled its chicken-focused product line – which Rennie described as a “bold new chapter” for the organization – and is trialling it in 210 outlets in the north-west of England and the province.

While the firm is still going to roll it out across its nearly 1,400 branches next year as intended, it regards chicken products as a supplement for its main pizza offerings.

Board Comment

The Domino's chair, the company chairman, said: “We are confident that there are a range of possibilities to drive further growth and performance improvement in the main pizza segment. We are focused on identifying the ideal CEO to oversee the disciplined execution of that expansion plan.”

Market Difficulties

Earlier this month, Domino's, which has 13 million customers in the British Isles, said transactions declined by 1.5% in the third quarter. In the summer, it warned that the takeaway market had “become tougher” as it attributed reduced spending in the run-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.

Competitors are also facing challenges. Pizza Hut revealed the shutting of multiple locations a last month, after the firm behind its UK venues entered insolvency.

Health Efforts

Trying to keep up with customer preferences towards healthier eating, the company has introduced lower-calorie products, such as its Thin & Crispy range of bakes below 400 calories as well as meat-free and wheat-free options. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a individual has 909 kcal.

Interim Management

Frampton has been with Domino's since the recent past, and previously worked for the gambling company a well-known operator. It is thought that she is not seeking to take on the CEO position permanently.

Frampton stated: “Our team has a number of ongoing development and operational projects that we will be focused on implementing at a rapid rate.”

She added these included ongoing development on the company's supply chain and product development, and its loyalty scheme.

Domino's is also in need of a long-term CFO until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow acts as temporary CFO.