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The boss of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while diversifying the company into fried chicken has been removed after disagreements with its board.

Leadership Change

Rennie is leaving 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 Domino's seeks a long-term chief.

The outgoing executive, who served at Domino's for more than two decades, had sought to redirect the UK's largest pizza delivery company towards chicken offerings, stating recently there was not “huge potential” left in the UK's pizza market. He said chicken was the fastest-growing menu item in the world.

Governance Tensions

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

Recent Brand Introduction

In the autumn, Domino's launched its poultry offering – which the former chief described as a “major strategic shift” for the group – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the business is still planning to expand it across its nearly 1,400 branches next year as intended, it regards chicken products as a supplement for its primary pizza operations.

Leadership Comment

The Domino's chair, the company chairman, commented: “The board believes that there are a series of prospects to boost expansion and performance improvement in the main pizza segment. We are prioritizing finding the suitable leader to oversee the systematic rollout of that expansion plan.”

Industry Difficulties

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders dipped by one and a half percent in the Q3. In August, it warned that the quick-service industry had “grown more challenging” as it blamed reduced spending in the period before the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in half-year profits.

Rival chains are also experiencing difficulties. Pizza Hut disclosed the closing of multiple locations a recently, after the business behind its British operations entered insolvency.

Wellness Efforts

Responding to customer preferences towards better nutrition, Domino's has rolled out light products, such as its thin-crust range of bakes below 400 kcals as well as plant-based and wheat-free pizzas. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has over 2,100, while a individual has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since the recent past, and previously worked for the gambling company William Hill. It is thought that she is not seeking to assume the chief executive role permanently.

She commented: “We have a multiple current expansion and efficiency programs that we will be dedicated to carrying out at pace.”

Frampton noted these involved additional efforts on the organization's logistics network and menu innovation, and its customer retention initiative.

Domino's is also in need of a permanent finance director until March 16, when Andy Andrea starts from the Irish cider and beer maker C&C Group. For now, Snow serves as interim finance chief.