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A chief executive of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while expanding the chain into chicken products has been replaced after tensions with its board.

Leadership Transition

The former CEO is departing after a brief tenure in charge, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a new leader.

Rennie, who served at the company for more than two decades, had aimed to shift Britain's biggest pizza food delivery firm towards fried chicken, stating earlier this month there was not “massive growth” left in the UK's pizza market. He said chicken was the quickest rising menu item in the international market.

Board Tensions

It is understood that there was tension between the CEO and the governance team over his strategy and business vision, although the company's official statement said he was stepping down “by mutual agreement”.

Recent Product Launch

In the autumn, Domino's unveiled its poultry brand – which the former chief called a “major strategic shift” for the company – and is trialling it in 210 outlets in the North West region and Northern Ireland.

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

Board Comment

Ian Bull, the company chair, stated: “We are confident that there are a number of opportunities to enhance value and value creation in our primary operations. We are focused on identifying the suitable leader to lead the systematic rollout of that growth strategy.”

Market Difficulties

In the latest update, Domino's, which has a substantial customer base in the British Isles, said transactions declined by 1.5 percent in the latest quarter. In the summer, it alerted that the quick-service industry had “grown more challenging” as it blamed weaker consumer confidence in the run-up to the government announcement and rising wage costs for disappointing revenue and a 15% drop in six-month income.

Rival chains are also struggling. Another major chain disclosed the shutting of multiple locations a recently, after the company behind its British operations fell into administration.

Wellness Efforts

Trying to keep up with consumer trends towards balanced diets, the company has introduced lower-calorie products, such as its Thin & Crispy line of pizzas below 400 calories as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a small has 909 kcal.

Interim Management

Nicola Frampton has been with Domino's since 2021, and had a background at the gaming group William Hill. It is believed that she does not want to assume the chief executive role long-term.

She commented: “We have a multiple ongoing growth and operational projects that we will be dedicated to carrying out at pace.”

She added these involved additional efforts on the organization's supply chain and product development, and its customer retention initiative.

Domino's is also lacking a full-time finance director until the spring, when a new appointee joins from the drinks company a well-known firm. In the meantime, Richard Snow serves as acting financial officer.