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The boss of Domino's Pizza Group who suggested the UK might have reached peak pizza while broadening the franchise into poultry items has been replaced after disagreements with its governing body.

Leadership Change

Andrew Rennie is leaving after only 24 months in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who was with Domino's for more than two decades, had sought to redirect the UK's leading pizza food delivery firm towards poultry-based products, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the quickest rising menu item in the world.

Board Tensions

Reports indicate that there was tension between the CEO and the governance team over his focus and business vision, although the company's release said he was stepping down “by mutual agreement”.

Recent Brand Launch

In September, Domino's launched its Chick 'N' Dip offering – which the former chief described as a “significant new phase” for the organization – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still intending to launch it across its nearly 1,400 branches next year as planned, it regards chicken products as a supplement for its main pizza offerings.

Leadership Comment

Ian Bull, the Domino's chairman, commented: “Directors think that there are a range of possibilities to enhance value and value creation in our primary operations. We are focused on finding the suitable leader to direct the careful implementation of that expansion plan.”

Industry Challenges

Recently, Domino's, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the latest quarter. In August, it warned that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the run-up to the budget and rising wage costs for below-target performance and a 15 percent decline in six-month income.

Rival chains are also experiencing difficulties. Pizza Hut revealed the shutting of dozens of outlets a last month, after the business behind its British operations faced financial collapse.

Wellness Initiatives

Trying to keep up with consumer trends towards better nutrition, Domino's has introduced light options, such as its Thin & Crispy selection of pizzas below 400 calories as well as meat-free and gluten-free pizzas. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a personal has under 1,000 calories.

Interim Leadership

The interim chief has been with Domino's since the recent past, and had a background at the betting firm William Hill. It is understood that she is not seeking to occupy the chief executive role long-term.

She commented: “We have a multiple active development and operational projects that we will be concentrating on carrying out at speed.”

She said these involved additional efforts on the organization's logistics network and menu innovation, and its loyalty scheme.

The pizza chain is also without a full-time finance director until March 16, when Andy Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as temporary CFO.