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A head of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached maximum pizza demand while diversifying the chain into chicken products has been ousted after conflicts with its directors.

Leadership Transition

Andrew Rennie is exiting after only 24 months in the top role, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a permanent CEO.

The outgoing executive, who worked for Domino's for a substantial period, had attempted to pivot the UK's biggest pizza takeaway chain towards fried chicken, stating in a recent interview there was not “huge potential” left in the pizza sector in the UK. He observed poultry was the most rapidly expanding food category in the world.

Board Tensions

Sources suggest that there was friction between Rennie and the governance team over his strategy and business vision, although Domino's official statement said he was leaving “through mutual consent”.

New Brand Launch

In the autumn, Domino's launched its chicken-focused product line – which the former chief described as a “major strategic shift” for the company – and is testing it in select stores in the north-west of England and the province.

While the firm is still going to roll it out across its almost 1,400 stores next year as planned, it regards chicken products as complementary to its main pizza offerings.

Board Comment

Ian Bull, the Domino's chairman, commented: “We are confident that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are focused on finding the suitable leader to direct the systematic rollout of that development approach.”

Industry Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales fell by 1.5 percent in the third quarter. In the summer, it alerted that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the run-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15% drop in six-month income.

Other pizza operators are also struggling. Pizza Hut announced the closure of 68 restaurants a last month, after the company behind its British operations entered insolvency.

Health Efforts

Trying to keep up with customer preferences towards better nutrition, the company has rolled out lower-calorie items, such as its thin-crust range of pizzas below 400 kcals as well as meat-free and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has 909 calories.

Acting Leadership

The interim chief has been with Domino's since 2021, and was formerly with the betting firm William Hill. It is understood that she prefers not to occupy the chief executive role long-term.

She commented: “The company has a several current development and performance initiatives that we will be dedicated to carrying out at pace.”

She said these involved additional efforts on the company's procurement system and menu innovation, and its rewards program.

The pizza chain is also lacking a long-term chief financial officer until the spring, when Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Snow is temporary CFO.