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Domino’s opened its first UK store in Luton in 1985 The chief executive of Domino’s has stepped down unexpectedly after warning that Britain was hitting peak pizza.
Andrew Rennie, who ran the chain for two years, will leave the business immediately after unveiling ambitious plans to tilt Domino’s towards fried chicken amid a slump in pizza demand.
Nicola Frampton, the chain’s current chief operating officer, will take over as caretaker chief executive while Ian Bull, the chairman, and senior director Natalia Barsegiyan search for a permanent replacement.
Mr Rennie’s exit comes just days after he warned that the UK’s pizza market was approaching saturation, with a supply glut of chains pushing diners towards burgers and fried chicken.
In response to the slowdown, Mr Rennie announced plans to start selling fried chicken from 1,400 British Domino’s stores through a new brand known as “Chick ‘n’ Dip” as well as looking for a new fast food chain to acquire.
On Tuesday, the pizza chain added that it will hold back from making any new acquisitions until a permanent chief executive is in place.
Domino’s, which opened its first UK store in Luton in 1985, has suffered a sharp slowdown in sales over the past two years which has dented its profits.
Its problems have been made worse by higher energy costs and the financial hit from Rachel Reeves’s increase of employers’ costs. Other pizza chains, such as Pizza Hut, have also struggled with the economic headwinds.
It has seen the FTSE 250 company’s share price slump by 51pc over the past year, as the stock has become one of the most shorted on the London stock market.
In September, hedge fund Browning West publicly urged Mr Bull to halt Mr Rennie’s acquisition plans.
The hedge fund, which owns a 5pc stake in Domino’s, instead called on the company to launch a £100m share buyback to return more money to investors. Domino’s said it now plans to “review its capital allocation priorities”.
Mr Rennie started out as a Domino’s franchisee in Australia when he was 26 years old before he was recruited by the company’s head office.
Ms Frampton previously worked at Deloitte and William Hill before joining Domino’s in 2021.
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