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The head of the UK's Domino's Pizza chain who suggested the UK might have hit pizza saturation while diversifying the chain into chicken products has been ousted after disagreements with its board.

Leadership Shake-Up

Andrew Rennie is leaving after just two years in the top role, and will be succeeded on an interim basis by the company's chief operating officer, Frampton, while Domino's searches for a permanent CEO.

Rennie, who worked for the company for a substantial period, had aimed to pivot the UK's leading pizza delivery company towards fried chicken, remarking earlier this month there was not “huge potential” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding protein in the international market.

Governance Tensions

Reports indicate that there was disagreement between the CEO and the directors over his approach and management style, although Domino's release said he was stepping down “as a joint decision”.

Recent Product Introduction

In September, the chain launched its Chick 'N' Dip product line – which the former chief called a “significant new phase” for the company – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still planning to expand it across its extensive network in the coming year as intended, it views fried chicken as a supplement for its core pizza business.

Leadership Comment

Ian Bull, the Domino's chairman, commented: “The board believes that there are a number of opportunities to enhance value and performance improvement in Domino's core business. We are focused on selecting the ideal CEO to direct the careful implementation of that development approach.”

Market Difficulties

Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales fell by 1.5% in the Q3. In the summer, it cautioned that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in six-month income.

Competitors are also struggling. Another major chain announced the shutting of 68 restaurants a month ago, after the business behind its outlets entered insolvency.

Health Initiatives

Adapting to consumer trends towards healthier eating, the company has launched reduced-calorie items, such as its thin-crust selection of bakes below 400 kcals as well as meat-free and gluten-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171, while a individual has 909 kcal.

Acting Leadership

Nicola Frampton has been with Domino's since 2021, and was formerly with the gambling company William Hill. It is understood that she prefers not to assume the CEO position long-term.

She said: “The company has a several active development and performance initiatives that we will be focused on implementing at a rapid rate.”

Frampton noted these involved ongoing development on the company's procurement system and menu innovation, and its customer retention initiative.

Domino's is also in need of a permanent CFO until 16 March, when a new appointee joins from the beverage producer a well-known firm. For now, Richard Snow serves as acting financial officer.