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The head of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit pizza saturation while diversifying the company into poultry items has been removed after tensions with its directors.

Executive Transition

The former CEO is departing after just two years in the top role, and will be replaced on an temporary basis by the company's operations head, Frampton, while Domino's searches for a new leader.

Rennie, who was with the company for more than two decades, had sought to redirect Britain's leading pizza food delivery firm towards chicken offerings, commenting earlier this month there was not “massive growth” left in the UK's pizza market. He observed poultry was the most rapidly expanding menu item in the international market.

Governance Disagreements

It is understood that there was tension between Rennie and the governance team over his focus and direction, although the company's release said he was departing “through mutual consent”.

New Product Introduction

In the autumn, Domino's launched its Chick 'N' Dip brand – which Rennie referred to as a “significant new phase” for the company – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as intended, it regards chicken products as a supplement for its primary pizza operations.

Leadership Comment

Ian Bull, the Domino's chairman, said: “We are confident that there are a number of opportunities to drive further growth and performance improvement in Domino's core business. We are concentrating on selecting the right chief executive to lead the careful implementation of that growth strategy.”

Market Challenges

Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales declined by one and a half percent in the third quarter. In August, it cautioned that the takeaway market had “become tougher” as it attributed economic uncertainty in the period before the government announcement and rising wage costs for disappointing revenue and a 15 percent decline in interim earnings.

Rival chains are also experiencing difficulties. Another major chain revealed the closing of 68 restaurants a last month, after the business behind its outlets fell into administration.

Health Initiatives

Responding to consumer trends towards balanced diets, Domino's has rolled out light options, such as its thin-crust selection of bakes below 400 calories as well as plant-based and wheat-free options. A big pepperoni bake has 2,311 kcals. A big margherita has 2,171, while a personal has 909 calories.

Acting Leadership

The interim chief has been with the company since 2021, and had a background at the betting firm William Hill. It is believed that she is not seeking to assume the top job long-term.

She said: “The company has a number of active development and performance initiatives that we will be dedicated to carrying out at a rapid rate.”

Frampton noted these involved additional efforts on the organization's logistics network and menu innovation, and its rewards program.

Domino's is also lacking a full-time CFO until the spring, when Andrea joins from the beverage producer C&C Group. Until then, Richard Snow is acting financial officer.