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The head of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached maximum pizza demand while diversifying the franchise into chicken products has been replaced after disagreements with its board.

Executive Transition

Andrew Rennie is departing after just two years in charge, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while Domino's seeks a new leader.

The outgoing executive, who worked for the company for a substantial period, had attempted to redirect Britain's leading pizza takeaway chain towards poultry-based products, stating earlier this month there was not “huge potential” left in the British pizza industry. He noted poultry was the most rapidly expanding menu item in the international market.

Board Disagreements

It is understood that there was disagreement between the CEO and the board over his focus and direction, although Domino's announcement said he was stepping down “through mutual consent”.

New Brand Introduction

In the autumn, the chain unveiled its chicken-focused product line – which Rennie called a “major strategic shift” for the organization – and is testing it in over 200 locations in the North West region and the province.

While the company is still going to roll it out across its extensive network next year as intended, it views chicken products as complementary to its main pizza offerings.

Leadership Comment

Ian Bull, the company chairman, stated: “The board believes that there are a number of opportunities to enhance value and value creation in the main pizza segment. We are prioritizing selecting the right chief executive to direct the disciplined execution of that development approach.”

Market Challenges

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5% in the Q3. In August, it cautioned that the quick-service industry had “intensified” as it attributed weaker consumer confidence in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in half-year profits.

Competitors are also facing challenges. Another major chain revealed the closing of multiple locations a last month, after the firm behind its British operations fell into administration.

Wellness Efforts

Responding to customer preferences towards better nutrition, the company has launched lower-calorie options, such as its Thin & Crispy selection of bakes below 400 calories as well as plant-based and allergy-friendly options. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.

Acting Management

The interim chief has been with Domino's since the recent past, and had a background at the gaming group William Hill. It is believed that she is not seeking to assume the CEO position long-term.

Frampton stated: “Our team has a multiple ongoing expansion and efficiency programs that we will be focused on carrying out at a rapid rate.”

She added these involved ongoing development on the company's supply chain and product development, and its rewards program.

The pizza chain is also without a long-term chief financial officer until March 16, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow serves as temporary CFO.