The CEO of Domino’s Pizza Group (DPG), the master franchisee for the chain’s locations in the UK and Ireland, thinks pizza has peaked there. Now he’s out the door.
The next CEO, whoever it may be, will take over a struggling brand that’s feeling its way into the fried chicken segment.
Andrew Rennie helmed DPG for about two years. It was a tenure reportedly marked by friction with DPG’s board as the company has seen a 15% drop in half-year profits and its share price reduced by nearly half over the past 12 months.
Thanks in part to higher prices and several new health-focused menu items—including a roster of thin-crust pizzas under 400 calories—Domino’s UK same-store sales actually rose by 1% in the third quarter after a .07% decline in Q2. But the chain’s orders dipped by 1.5% in Q3 while delivery orders fell by 3.4%, according to Reuters.
Rennie moved Domino’s UK into fried chicken earlier this year with a new brand called Chick’N’Dip. In September, the company said it would test Chick’n’Dip in about 200 Domino’s stores before rolling it out systemwide. Rennie also reportedly told the Financial Times that he did not envision any “massive growth” opportunities remaining for pizza in the UK. Chicken, Rennie said, is the “fastest-growing protein” in the world, and he hoped Chick’n’Dip could be the answer to his company’s woes.
Rennie and DPG parted ways through mutual agreement, the company said. Chief Operating Officer Nicola Frampton will step into the role as interim CEO for the time being.
Although plans for Chick’n’Dip are moving forward, Ian Bull, DPG’s chair, said in a statement that the board believes “there are a number of opportunities to drive further growth and value creation in Domino’s core business. We are focused on identifying the right chief executive to lead the disciplined execution of that growth strategy.”
