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The head of Domino's Pizza Group who indicated the UK might have reached pizza saturation while expanding the chain into poultry items has been removed after disagreements with its directors.

Leadership Shake-Up

Andrew Rennie is departing after just two years in the top role, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who served at the company for more than two decades, had attempted to pivot the UK's largest pizza takeaway chain towards fried chicken, remarking recently there was not “huge potential” left in the pizza sector in the UK. He observed poultry was the quickest rising food category in the international market.

Governance Tensions

It is understood that there was disagreement between the CEO and the directors over his approach and management style, although Domino's official statement said he was stepping down “through mutual consent”.

Recent Brand Introduction

In the autumn, Domino's launched its Chick 'N' Dip offering – which Rennie called a “major strategic shift” for the organization – and is piloting it in 210 outlets in the north-west of England and the province.

While the firm is still intending to launch it across its extensive network next year as planned, it considers chicken products as an addition to its main pizza offerings.

Leadership Comment

The Domino's chair, the company chairman, commented: “We are confident that there are a number of opportunities to drive further growth and value creation in our primary operations. We are concentrating on selecting the suitable leader to lead the careful implementation of that growth strategy.”

Market Challenges

Recently, Domino's, which has 13 million customers in the British Isles, said orders declined by 1.5 percent in the latest quarter. In August, it cautioned that the takeaway market had “intensified” as it blamed reduced spending in the period before the budget and higher payroll outlays for weaker-than-expected sales and a 15% drop in half-year profits.

Competitors are also facing challenges. Pizza Hut announced the shutting of 68 restaurants a last month, after the company behind its British operations entered insolvency.

Wellness Initiatives

Trying to keep up with customer preferences towards better nutrition, Domino's has rolled out lower-calorie products, such as its light base range of bakes below 400 kcal as well as plant-based and allergy-friendly options. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a individual has 909 kcal.

Interim Management

Frampton has been with the company since the recent past, and was formerly with the gaming group a well-known operator. It is understood that she prefers not to assume the chief executive role long-term.

She commented: “Our team has a several current development and performance initiatives that we will be dedicated to carrying out at a rapid rate.”

She said 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 long-term CFO until 16 March, when Andy Andrea joins from the beverage producer a well-known firm. For now, Richard Snow serves as temporary CFO.