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A head of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit maximum pizza demand while expanding the company into chicken products has been replaced after disagreements with its board.

Leadership Transition

Andrew Rennie is exiting after only 24 months in the top role, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's seeks a permanent CEO.

The outgoing executive, who was with the company for more than two decades, had aimed to pivot the UK's leading pizza food delivery firm towards poultry-based products, commenting earlier this month there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the quickest rising menu item in the international market.

Governance Friction

Sources suggest that there was disagreement between the CEO and the directors over his approach and business vision, although the company's official statement said he was stepping down “as a joint decision”.

Recent Product Launch

In the autumn, the chain introduced its Chick 'N' Dip offering – which Rennie referred to as a “significant new phase” for the organization – and is trialling it in 210 outlets in the North West region and the province.

While the company is still intending to launch it across its nearly 1,400 branches next year as scheduled, it regards fried chicken as complementary to its main pizza offerings.

Leadership Statement

Bull, the Domino's chairman, stated: “The board believes that there are a number of opportunities to drive further growth and value creation in the main pizza segment. We are focused on selecting the right chief executive to oversee the careful implementation of that growth strategy.”

Industry Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said sales dipped by 1.5 percent in the latest quarter. In August, it cautioned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in six-month income.

Other pizza operators are also experiencing difficulties. Pizza Hut announced the closing of multiple locations a month ago, after the business behind its outlets fell into administration.

Health Initiatives

Responding to customer preferences towards better nutrition, the company has introduced lower-calorie items, such as its Thin & Crispy selection of bakes below 400 calories as well as meat-free and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171, while a individual has 909 calories.

Interim Leadership

Frampton has been with Domino's since 2021, and had a background at the gaming group William Hill. It is believed that she prefers not to assume the top job permanently.

She said: “Our team has a several ongoing development and performance initiatives that we will be focused on carrying out at a rapid rate.”

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

Domino's is also in need of a full-time chief financial officer until March 16, when Andrea starts from the drinks company C&C Group. In the meantime, Richard Snow acts as temporary CFO.