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The head of Domino's Pizza Group who indicated the UK might have hit pizza saturation while diversifying the company into fried chicken has been removed after tensions with its directors.

Executive Transition

Rennie is departing after only 24 months in charge, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a new leader.

Rennie, who was with Domino's for over 20 years, had sought to pivot the UK's largest pizza food delivery firm towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He observed chicken was the most rapidly expanding food category in the globe.

Governance Tensions

Reports indicate that there was disagreement between the CEO and the governance team over his approach and direction, although Domino's official statement said he was stepping down “through mutual consent”.

Recent Product Launch

In September, Domino's introduced its chicken-focused product line – which the former chief referred to as a “bold new chapter” for the company – and is testing it in select stores in the North West region and the province.

While the company is still intending to launch it across its almost 1,400 stores next year as scheduled, it considers fried chicken as a supplement for its main pizza offerings.

Board Comment

Ian Bull, the company chair, stated: “The board believes that there are a number of opportunities to drive further growth and value creation in our primary operations. We are focused on selecting the suitable leader to oversee the disciplined execution of that development approach.”

Market Difficulties

In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by one and a half percent in the Q3. In August, it warned that the food delivery sector had “become tougher” as it attributed weaker consumer confidence in the lead-up to the budget and rising wage costs for weaker-than-expected sales and a 15% drop in interim earnings.

Rival chains are also struggling. Another major chain disclosed the closing of multiple locations a month ago, after the company behind its outlets faced financial collapse.

Wellness Initiatives

Trying to keep up with customer preferences towards healthier eating, the company has introduced reduced-calorie options, such as its light base selection of pizzas below 400 kcal as well as vegan and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has over 2,100, while a personal has 909 calories.

Interim Management

The interim chief has been with the company since the recent past, and previously worked for the gambling company William Hill. It is thought that she does not want to take on the top job permanently.

She commented: “The company has a number of active development and operational projects that we will be dedicated to implementing at speed.”

Frampton noted these comprised further work on the organization's supply chain and new item creation, and its loyalty scheme.

Domino's is also lacking a full-time chief financial officer until March 16, when Andy Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow is temporary CFO.