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The head of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while expanding the chain into poultry items has been replaced after tensions with its governing body.

Leadership Shake-Up

Andrew Rennie is exiting after a brief tenure in leadership, and will be replaced on an interim basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.

The outgoing executive, who served at the company for over 20 years, had aimed to pivot the UK's leading pizza takeaway chain towards poultry-based products, remarking in a recent interview there was not “significant expansion” left in the British pizza industry. He noted poultry was the fastest-growing menu item in the world.

Governance Disagreements

It is understood that there was disagreement between the CEO and the directors over his focus and direction, although Domino's release said he was departing “through mutual consent”.

Recent Product Launch

In September, Domino's unveiled its Chick 'N' Dip offering – which the former chief described as a “bold new chapter” for the organization – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its almost 1,400 stores next year as scheduled, it considers chicken products as an addition to its core pizza business.

Leadership Statement

The Domino's chair, the company chair, said: “Directors think that there are a number of opportunities to enhance value and profitability in our primary operations. We are focused on finding the right chief executive to direct the careful implementation of that growth strategy.”

Industry Challenges

In the latest update, Domino's, which has millions of users in the British Isles, said sales dipped by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the budget and increasing labor expenses for disappointing revenue and a significant fall in six-month income.

Rival chains are also struggling. Pizza Hut announced the closing of 68 restaurants a last month, after the business behind its British operations fell into administration.

Wellness Efforts

Adapting to customer preferences towards healthier eating, Domino's has rolled out light products, such as its light base line of bakes below 400 calories as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a personal has under 1,000 calories.

Acting Leadership

The interim chief has been with Domino's since the recent past, and previously worked for the gaming group William Hill. It is understood that she is not seeking to take on the chief executive role permanently.

She said: “The company has a number of current development and efficiency programs that we will be focused on executing at a rapid rate.”

She said these included additional efforts on the organization's procurement system and menu innovation, and its loyalty scheme.

The pizza chain is also in need of a long-term CFO until the spring, when Andy Andrea starts from the drinks company C&C Group. In the meantime, Snow acts as temporary CFO.