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A chief executive of Domino's Pizza Group who suggested the UK might have reached maximum pizza demand while expanding the franchise into chicken products has been replaced after tensions with its governing body.

Executive Transition

Rennie is departing after just two years in charge, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a new leader.

The outgoing executive, who served at Domino's for more than two decades, had aimed to shift the UK's leading pizza takeaway chain towards fried chicken, remarking recently there was not “significant expansion” left in the British pizza industry. He noted chicken was the most rapidly expanding menu item in the world.

Governance Disagreements

Sources suggest that there was tension between Rennie and the directors over his strategy and business vision, although the company's official statement said he was departing “through mutual consent”.

Recent Brand Introduction

In September, the chain introduced its chicken-focused brand – which Rennie described as a “bold new chapter” for the group – and is testing it in select stores in the north-west of England and Northern Ireland.

While the firm is still intending to launch it across its extensive network in the coming year as intended, it considers fried chicken as complementary to its core pizza business.

Board Comment

The Domino's chair, the Domino's chairman, commented: “Directors think that there are a series of prospects to drive further growth and profitability in our primary operations. We are focused on finding the ideal CEO to direct the disciplined execution of that development approach.”

Market Difficulties

Earlier this month, Domino's, which has millions of users in the UK and Ireland, said orders dipped by one and a half percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for below-target performance and a significant fall in six-month income.

Other pizza operators are also facing challenges. Pizza Hut disclosed the closing of dozens of outlets a recently, after the firm behind its British operations fell into administration.

Health Efforts

Adapting to consumer trends towards healthier eating, Domino's has launched reduced-calorie products, such as its thin-crust line of pizzas below 400 kcals as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 kcal.

Interim Leadership

Nicola Frampton has been with Domino's since 2021, and had a background at the gambling company William Hill. It is believed that she does not want to assume the CEO position long-term.

She commented: “The company has a multiple ongoing expansion and efficiency programs that we will be concentrating on carrying out at speed.”

Frampton noted these comprised ongoing development on the company's procurement system and new item creation, and its loyalty scheme.

The pizza chain is also lacking a permanent finance director until March 16, when a new appointee comes aboard from the drinks company a well-known firm. For now, Richard Snow acts as acting financial officer.