The boss of Domino's Pizza Group who suggested the UK might have reached peak pizza while expanding the franchise into chicken products has been ousted after conflicts with its directors.
The former CEO is leaving after a brief tenure in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a new leader.
Rennie, who worked for Domino's for over 20 years, had attempted to shift Britain's leading pizza delivery company towards poultry-based products, stating earlier this month there was not “huge potential” left in the British pizza industry. He said poultry was the most rapidly expanding menu item in the international market.
Reports indicate that there was friction between the CEO and the board over his approach and business vision, although the company's announcement said he was departing “by mutual agreement”.
In the autumn, Domino's launched its Chick 'N' Dip brand – which the former chief referred to as a “bold new chapter” for the company – and is testing it in 210 outlets in the north-west of England and Northern Ireland.
While the business is still going to roll it out across its extensive network in the coming year as planned, it considers chicken products as an addition to its core pizza business.
Ian Bull, the company chair, stated: “The board believes that there are a series of prospects to enhance value and profitability in Domino's core business. We are focused on identifying the ideal CEO to oversee the systematic rollout of that expansion plan.”
Recently, Domino's, which has a substantial customer base in the British Isles, said orders dipped by one and a half percent in the Q3. In August, it cautioned that the food delivery sector had “become tougher” as it attributed economic uncertainty in the run-up to the budget and higher payroll outlays for disappointing revenue and a significant fall in interim earnings.
Other pizza operators are also facing challenges. Pizza Hut disclosed the shutting of multiple locations a last month, after the business behind its British operations fell into administration.
Trying to keep up with customer preferences towards healthier eating, the company has introduced lower-calorie products, such as its light base range of pizzas below 400 kcals as well as meat-free and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a small has 909 kcal.
Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group William Hill. It is understood that she does not want to take on the chief executive role on a full-time basis.
She commented: “The company has a number of current growth and efficiency programs that we will be focused on carrying out at pace.”
She added these included ongoing development on the company's supply chain and new item creation, and its customer retention initiative.
Domino's is also lacking a long-term CFO until 16 March, when a new appointee comes aboard from the beverage producer C&C Group. In the meantime, Richard Snow serves as acting financial officer.
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