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A head of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while expanding the franchise into fried chicken has been ousted after disagreements with its governing body.

Leadership Change

Andrew Rennie is exiting after just two years in the top role, and will be replaced on an interim basis by the company's operations head, Nicola Frampton, while Domino's searches for a long-term chief.

Rennie, who worked for the company for a substantial period, had sought to redirect Britain's largest pizza delivery company towards poultry-based products, remarking in a recent interview there was not “huge potential” left in the British pizza industry. He noted chicken was the quickest rising protein in the world.

Governance Tensions

Sources suggest that there was friction between the CEO and the board over his strategy and business vision, although the company's announcement said he was leaving “through mutual consent”.

Recent Brand Launch

In September, Domino's introduced its chicken-focused product line – which the former chief described as a “significant new phase” for the organization – and is testing it in 210 outlets in the north-west of England and Northern Ireland.

While the company is still intending to launch it across its almost 1,400 stores next year as scheduled, it views chicken products as an addition to its main pizza offerings.

Leadership Comment

Ian Bull, the Domino's chair, said: “The board believes that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are prioritizing identifying the ideal CEO to lead the systematic rollout of that expansion plan.”

Market Challenges

Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders declined by one and a half percent in the latest quarter. In August, it alerted that the food delivery sector had “intensified” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for below-target performance and a 15% drop in half-year profits.

Rival chains are also facing challenges. Pizza Hut disclosed the closing of 68 restaurants a month ago, after the company behind its UK venues entered insolvency.

Wellness Efforts

Adapting to market shifts towards balanced diets, the company has introduced lower-calorie options, such as its light base range of pizzas below 400 calories as well as vegan and wheat-free pizzas. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a small has under 1,000 calories.

Interim Management

Nicola Frampton has been with the company since 2021, and was formerly with the gambling company a well-known operator. It is believed that she does not want to take on the CEO position long-term.

She commented: “Our team has a several ongoing growth and operational projects that we will be dedicated to implementing at speed.”

Frampton noted these comprised further work on the organization's logistics network and menu innovation, and its rewards program.

Domino's is also lacking a permanent CFO until March 16, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. For now, Snow is acting financial officer.