Leadership Shakeup at Domino's Following Strategic Differences
Domino's Pizza Group has announced the sudden departure of its chief executive Andrew Rennie after just two years in the role. The move comes amid reported tensions with the board over his strategic direction, particularly his emphasis on expanding into fried chicken products.
The company stated that Rennie is leaving "by mutual agreement", though sources indicate there was friction regarding his focus and approach to leading Britain's largest pizza delivery chain. Rennie, who had been with Domino's for more than two decades, will be immediately replaced on an interim basis by chief operating officer Nicola Frampton.
Chicken Expansion Amid Declining Pizza Growth
The leadership change follows controversial comments Rennie made to the Financial Times earlier this month, where he suggested the UK might have reached "peak pizza" and claimed there wasn't "massive growth" remaining in the domestic pizza market. He positioned chicken as the "fastest-growing protein in the world" and spearheaded the launch of Domino's Chick 'N' Dip brand in September.
Currently, the fried chicken range is being trialled in 210 outlets across north-west England and Northern Ireland. Despite Rennie's departure, Domino's confirmed it still plans to roll out the chicken products across its nearly 1,400 branches next year as originally scheduled, though the company now describes fried chicken as complementary to its core pizza business rather than a replacement.
Market Challenges and Strategic Refocus
The pizza delivery market has faced significant headwinds recently. Domino's reported a 1.5% dip in orders during the third quarter and had previously warned about the "tougher" takeaway market conditions. In August, the company blamed weaker consumer confidence and rising wage costs for weaker-than-expected sales and a 15% drop in half-year profits.
Domino's isn't alone in facing challenges. Pizza Hut recently announced the closure of 68 restaurants after the company behind its UK venues fell into administration, highlighting broader pressures in the sector.
In response to changing consumer preferences, Domino's has introduced several healthier options including:
- Thin & Crispy pizzas under 400 calories
- Plant-based pizza alternatives
- Gluten-free options
For context, the company's traditional offerings remain substantial - a large pepperoni pizza contains 2,311 calories, while a large cheese and tomato pizza has 2,171 calories.
Interim CEO Nicola Frampton, who joined Domino's in 2021 after working at William Hill, has indicated she doesn't want the chief executive role permanently. She emphasized focusing on "growth and performance initiatives at pace", including supply chain improvements, product development, and enhancing the company's loyalty programme.
The leadership transition comes during a period of instability for Domino's senior management. The company won't have a permanent chief financial officer until March 16, when Andy Andrea joins from Irish cider and beer maker C&C Group, with Richard Snow currently serving as interim finance chief.
Domino's chair Ian Bull stated the board believes there are "significant opportunities to drive further growth and value creation in Domino's core business" and emphasized finding the right leader to execute that strategy. The company serves approximately 13 million customers across the UK and Ireland.
