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A head of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached peak pizza while broadening the franchise into poultry items has been removed after tensions with its board.

Executive Transition

Andrew Rennie is exiting after just two years in charge, and will be replaced on an temporary basis by the company's operations head, Nicola Frampton, while Domino's seeks a long-term chief.

Rennie, who was with the company for a substantial period, had sought to pivot the UK's leading pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “massive growth” left in the British pizza industry. He noted poultry was the fastest-growing menu item in the international market.

Governance Friction

Reports indicate that there was disagreement between the CEO and the directors over his focus and direction, although Domino's announcement said he was stepping down “by mutual agreement”.

Recent Brand Introduction

In the autumn, Domino's unveiled its Chick 'N' Dip product line – which the former chief called a “bold new chapter” for the group – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still intending to launch it across its extensive network in the coming year as scheduled, it views fried chicken as a supplement for its primary pizza operations.

Board Comment

Bull, the Domino's chairman, commented: “The board believes that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are prioritizing selecting the ideal CEO to oversee the disciplined execution of that expansion plan.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by one and a half percent in the Q3. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it attributed economic uncertainty in the period before the budget and increasing labor expenses for disappointing revenue and a 15 percent decline in interim earnings.

Other pizza operators are also facing challenges. Another major chain revealed the closure of dozens of outlets a last month, after the company behind its UK venues entered insolvency.

Wellness Initiatives

Responding to market shifts towards better nutrition, the company has launched lower-calorie products, such as its Thin & Crispy range of bakes below 400 kcal as well as plant-based and wheat-free options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171, while a small has 909 calories.

Acting Leadership

Nicola 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 is not seeking to take on the CEO position long-term.

She commented: “The company has a multiple current development and efficiency programs that we will be concentrating on carrying out at pace.”

She said these included additional efforts on the company's procurement system and menu innovation, and its loyalty scheme.

The pizza chain is also in need of a permanent CFO until March 16, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Richard Snow acts as interim finance chief.