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A chief executive of the UK's Domino's Pizza chain who suggested the UK might have hit pizza saturation while expanding the franchise into chicken products has been ousted after conflicts with its governing body.

Leadership Shake-Up

Andrew Rennie is leaving after only 24 months in leadership, and will be replaced on an interim basis by the company's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.

Rennie, who worked for Domino's for a substantial period, had attempted to pivot the UK's largest pizza food delivery firm towards chicken offerings, stating in a recent interview there was not “huge potential” left in the British pizza industry. He noted chicken was the most rapidly expanding menu item in the world.

Governance Tensions

Sources suggest that there was tension between the CEO and the governance team over his focus and management style, although Domino's official statement said he was stepping down “by mutual agreement”.

Recent Brand Introduction

In the autumn, the chain launched its poultry brand – which the former chief described as a “significant new phase” for the group – and is piloting it in select stores in the North West region and Northern Ireland.

While the firm is still intending to launch it across its nearly 1,400 branches next year as scheduled, it considers fried chicken as an addition to its main pizza offerings.

Leadership Comment

The Domino's chair, the Domino's chair, said: “Directors think that there are a range of possibilities to drive further growth and profitability in the main pizza segment. We are concentrating on selecting the ideal CEO to lead the disciplined execution of that expansion plan.”

Industry Challenges

Recently, Domino's, which has millions of users in the British Isles, said transactions fell by 1.5% in the Q3. In August, it cautioned that the food delivery sector had “intensified” as it blamed weaker consumer confidence in the lead-up to the budget and rising wage costs for weaker-than-expected sales and a significant fall in interim earnings.

Rival chains are also experiencing difficulties. Another major chain announced the closing of 68 restaurants a month ago, after the firm behind its UK venues faced financial collapse.

Wellness Initiatives

Adapting to customer preferences towards healthier eating, Domino's has launched lower-calorie options, such as its Thin & Crispy line of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171, while a small has under 1,000 calories.

Interim Leadership

Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is thought that she does not want to assume the chief executive role on a full-time basis.

Frampton stated: “We have a number of current development and efficiency programs that we will be concentrating on implementing at speed.”

Frampton noted these comprised further work on the organization's procurement system and new item creation, and its customer retention initiative.

Domino's is also lacking a full-time chief financial officer until March 16, when a new appointee joins from the beverage producer a well-known firm. Until then, Richard Snow is temporary CFO.