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The head of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while expanding the franchise into chicken products has been replaced after disagreements with its directors.

Executive Shake-Up

Andrew Rennie is exiting after just two years in the top role, and will be replaced on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.

Rennie, who served at Domino's for more than two decades, had attempted to redirect the UK's largest pizza takeaway chain towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the pizza sector in the UK. He observed poultry was the most rapidly expanding food category in the world.

Board Disagreements

It is understood that there was tension between Rennie and the board over his strategy and business vision, although the company's release said he was departing “as a joint decision”.

Recent Product Launch

In the autumn, the chain launched its Chick 'N' Dip brand – which Rennie described as a “major strategic shift” for the company – and is trialling it in over 200 locations in the north-west of England and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as planned, it considers fried chicken as complementary to its main pizza offerings.

Board Comment

Ian Bull, the company chairman, said: “Directors think that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are focused on identifying the ideal CEO to oversee the careful implementation of that development approach.”

Market Challenges

Recently, Domino's, which has 13 million customers in the British Isles, said transactions fell by one and a half percent in the Q3. In August, it alerted that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for disappointing revenue and a 15% drop in half-year profits.

Other pizza operators are also facing challenges. Pizza Hut announced the closing of dozens of outlets a month ago, after the company behind its UK venues faced financial collapse.

Wellness Efforts

Adapting to market shifts towards better nutrition, Domino's has rolled out reduced-calorie products, such as its Thin & Crispy line of pizzas below 400 calories as well as vegan and wheat-free options. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 kcal.

Acting Leadership

Frampton has been with Domino's since the recent past, and had a background at the gambling company William Hill. It is believed that she is not seeking to take on the chief executive role long-term.

She said: “Our team has a number of active development and performance initiatives that we will be focused on carrying out at a rapid rate.”

Frampton noted these included further work on the organization's logistics network and product development, and its loyalty scheme.

Domino's is also lacking a permanent chief financial officer until 16 March, when a new appointee comes aboard from the drinks company C&C Group. Until then, Snow acts as interim finance chief.