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The boss of Domino's Pizza Group who indicated the United Kingdom might have hit maximum pizza demand while expanding the chain into chicken products has been replaced after conflicts with its directors.

Leadership Shake-Up

Andrew Rennie is leaving after only 24 months in leadership, and will be replaced on an interim basis by the company's chief operating officer, Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who served at the company for over 20 years, had sought to redirect the UK's leading pizza food delivery firm towards poultry-based products, stating in a recent interview there was not “huge potential” left in the British pizza industry. He said chicken was the most rapidly expanding food category in the international market.

Board Tensions

Reports indicate that there was friction between Rennie and the governance team over his focus and business vision, although Domino's announcement said he was departing “by mutual agreement”.

Recent Product Launch

In September, Domino's introduced its Chick 'N' Dip offering – which Rennie described as a “bold new chapter” for the group – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the firm is still going to roll it out across its nearly 1,400 branches next year as scheduled, it views chicken products as an addition to its core pizza business.

Board Statement

Ian Bull, the company chair, said: “Directors think that there are a number of opportunities to enhance value and profitability in Domino's core business. We are concentrating on finding the ideal CEO to oversee the systematic rollout of that development approach.”

Industry Challenges

Recently, Domino's, which has a substantial customer base in the UK and Ireland, said transactions declined by 1.5% in the latest quarter. In the summer, it cautioned that the takeaway market had “intensified” as it blamed reduced spending in the period before the budget and increasing labor expenses for weaker-than-expected sales and a 15% drop in interim earnings.

Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closing of dozens of outlets a last month, after the company behind its British operations fell into administration.

Wellness Efforts

Adapting to consumer trends towards healthier eating, the company has introduced light products, such as its light base line of pizzas below 400 kcals as well as meat-free and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171 kcal, while a small has 909 kcal.

Interim Management

The interim chief has been with the company since 2021, and previously worked for the gaming group William Hill. It is understood that she does not want to take on the chief executive role long-term.

She said: “We have a multiple ongoing growth and performance initiatives that we will be focused on implementing at speed.”

She said these involved additional efforts on the organization's procurement system and new item creation, and its rewards program.

The pizza chain is also lacking a permanent CFO until 16 March, when Andy Andrea comes aboard from the drinks company C&C Group. Until then, Richard Snow acts as acting financial officer.