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The head of Domino's Pizza Group who proposed the UK might have hit peak pizza while expanding the company into chicken products has been ousted after conflicts with its governing body.

Leadership Transition

Andrew Rennie is exiting after just two years in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Frampton, while Domino's looks for a long-term chief.

The outgoing executive, who was with Domino's for more than two decades, had attempted to shift the UK's biggest pizza food delivery firm towards fried chicken, remarking recently there was not “massive growth” left in the UK's pizza market. He noted poultry was the most rapidly expanding menu item in the international market.

Board Tensions

It is understood that there was friction between the CEO and the governance team over his approach and business vision, although Domino's announcement said he was stepping down “as a joint decision”.

Recent Product Introduction

In the autumn, Domino's launched its chicken-focused product line – which the former chief referred to as a “bold new chapter” for the organization – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its nearly 1,400 branches next year as planned, it views chicken products as a supplement for its core pizza business.

Board Comment

Ian Bull, the Domino's chairman, commented: “We are confident that there are a series of prospects to boost expansion and performance improvement in our primary operations. We are concentrating on finding the suitable leader to direct the careful implementation of that growth strategy.”

Market Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said sales fell by 1.5% in the Q3. In August, it cautioned that the food delivery sector had “grown more challenging” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a 15 percent decline in six-month income.

Rival chains are also struggling. Pizza Hut announced the shutting of multiple locations a month ago, after the firm behind its outlets faced financial collapse.

Health Efforts

Trying to keep up with consumer trends towards healthier eating, Domino's has rolled out reduced-calorie options, such as its thin-crust line of pizzas below 400 kcal as well as vegan and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A big margherita has 2,171, while a personal has under 1,000 calories.

Acting Management

The interim chief has been with Domino's since 2021, and had a background at the gambling company William Hill. It is understood that she prefers not to take on the chief executive role on a full-time basis.

Frampton stated: “Our team has a number of ongoing growth and operational projects that we will be focused on carrying out at pace.”

She said these included additional efforts on the company's logistics network and new item creation, and its customer retention initiative.

The pizza chain is also in need of a full-time finance director until 16 March, when Andy Andrea starts from the beverage producer C&C Group. For now, Snow serves as temporary CFO.