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The head of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit pizza saturation while broadening the chain into chicken products has been ousted after conflicts with its board.

Leadership Shake-Up

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 the pizza giant searches for a permanent CEO.

The outgoing executive, who was with Domino's for more than two decades, had aimed to pivot the UK's largest pizza food delivery firm towards chicken offerings, commenting in a recent interview there was not “massive growth” left in the pizza sector in the UK. He said poultry was the most rapidly expanding protein in the world.

Governance Disagreements

It is understood that there was disagreement between Rennie and the governance team over his approach and direction, although Domino's release said he was stepping down “as a joint decision”.

Recent Product Launch

In September, the chain launched its poultry product line – which Rennie described as a “significant new phase” for the company – and is trialling it in over 200 locations in the North West region and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as planned, it regards fried chicken as complementary to its core pizza business.

Leadership Comment

Ian Bull, the Domino's chair, commented: “We are confident that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are prioritizing identifying the ideal CEO to direct the disciplined execution of that growth strategy.”

Industry Challenges

Earlier this month, Domino's, which has millions of users in the British Isles, said transactions dipped by 1.5 percent in the latest quarter. In the summer, it warned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in half-year profits.

Competitors are also facing challenges. Pizza Hut disclosed the closing of dozens of outlets a last month, after the business behind its British operations fell into administration.

Health Efforts

Trying to keep up with customer preferences towards balanced diets, Domino's has introduced lower-calorie options, such as its Thin & Crispy range of pizzas below 400 kcals as well as plant-based and wheat-free pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 calories.

Interim Management

Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is thought that she prefers not to assume the CEO position on a full-time basis.

She said: “The company has a number of active expansion and operational projects that we will be focused on implementing at pace.”

Frampton noted these involved additional efforts on the organization's procurement system and new item creation, and its loyalty scheme.

The pizza chain is also in need of a full-time CFO until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.