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A chief executive of the UK's Domino's Pizza chain who proposed the UK might have reached maximum pizza demand while broadening the chain into poultry items has been replaced after disagreements with its directors.

Executive Change

Andrew Rennie is departing after only 24 months in the top role, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a long-term chief.

Rennie, who worked for Domino's for a substantial period, had aimed to pivot Britain's leading pizza food delivery firm towards poultry-based products, stating in a recent interview there was not “massive growth” left in the British pizza industry. He noted poultry was the most rapidly expanding menu item in the world.

Governance Tensions

Reports indicate that there was tension between the CEO and the governance team over his approach and business vision, although Domino's release said he was stepping down “as a joint decision”.

New Brand Launch

In September, the chain introduced its poultry brand – which the former chief referred to as a “major strategic shift” for the company – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.

While the company is still going to roll it out across its almost 1,400 stores in the coming year as scheduled, it views chicken products as a supplement for its primary pizza operations.

Leadership Statement

Bull, the company chairman, said: “The board believes that there are a number of opportunities to drive further growth and value creation in Domino's core business. We are focused on finding the right chief executive to oversee the systematic rollout of that development approach.”

Market Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said sales fell by 1.5 percent in the third quarter. In August, it warned that the quick-service industry had “become tougher” as it attributed economic uncertainty in the lead-up to the government announcement and rising wage costs for disappointing revenue and a significant fall in six-month income.

Competitors are also experiencing difficulties. Another major chain revealed the shutting of 68 restaurants a last month, after the business behind its outlets fell into administration.

Health Initiatives

Trying to keep up with customer preferences towards balanced diets, Domino's has rolled out light products, such as its Thin & Crispy line of bakes below 400 kcals as well as plant-based and wheat-free options. A big pepperoni bake has 2,311 kcals. A big margherita has 2,171, while a small has 909 kcal.

Acting Leadership

The interim chief has been with the company since 2021, and had a background at the gambling company William Hill. It is understood that she is not seeking to assume the chief executive role on a full-time basis.

She commented: “We have a number of ongoing expansion and operational projects that we will be concentrating on implementing at a rapid rate.”

She said these comprised further work on the organization's supply chain and product development, and its loyalty scheme.

Domino's is also lacking a permanent finance director until the spring, when Andrea joins from the Irish cider and beer maker C&C Group. For now, Richard Snow is acting financial officer.