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

Executive Shake-Up

The former CEO is departing after just two years in the top role, and will be succeeded on an acting basis by the company's operations head, Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who was with Domino's for over 20 years, had aimed to redirect Britain's biggest pizza delivery company towards poultry-based products, stating earlier this month there was not “massive growth” left in the UK's pizza market. He said poultry was the quickest rising menu item in the globe.

Board Disagreements

Reports indicate that there was tension between the CEO and the governance team over his focus and direction, although Domino's announcement said he was stepping down “through mutual consent”.

New Brand Introduction

In September, Domino's introduced its Chick 'N' Dip brand – which Rennie referred to as a “major strategic shift” for the company – and is testing it in over 200 locations in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its extensive network in the coming year as planned, it regards fried chicken as an addition to its primary pizza operations.

Leadership Comment

Ian Bull, the company chair, stated: “Directors think that there are a number of opportunities to drive further growth and value creation in our primary operations. We are prioritizing selecting the suitable leader to lead the disciplined execution of that growth strategy.”

Market Challenges

In the latest update, Domino's, which has a substantial customer base in the British Isles, said transactions dipped by 1.5 percent in the latest quarter. In August, it warned that the quick-service industry had “intensified” as it blamed economic uncertainty in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in interim earnings.

Other pizza operators are also struggling. Pizza Hut announced the closure of multiple locations a recently, after the company behind its outlets entered insolvency.

Wellness Efforts

Trying to keep up with customer preferences towards better nutrition, Domino's has launched lower-calorie items, such as its Thin & Crispy line of pizzas below 400 calories as well as meat-free and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171, while a individual has 909 kcal.

Acting Leadership

Frampton has been with the company since 2021, and had a background at the betting firm a well-known operator. It is understood that she is not seeking to assume the CEO position on a full-time basis.

Frampton stated: “We have a multiple current expansion and operational projects that we will be focused on carrying out at pace.”

She said these comprised further work on the company's procurement system and new item creation, and its rewards program.

Domino's is also lacking a full-time CFO until March 16, when Andrea starts from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as acting financial officer.