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A head of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while diversifying the chain into fried chicken has been removed after conflicts with its governing body.

Leadership Transition

Andrew Rennie is departing after only 24 months in leadership, and will be replaced on an interim basis by the company's operations head, Frampton, while the pizza giant seeks a new leader.

Rennie, who worked for the company for more than two decades, had sought to shift the UK's leading pizza takeaway chain towards poultry-based products, remarking earlier this month there was not “huge potential” left in the British pizza industry. He observed chicken was the most rapidly expanding protein in the international market.

Board Friction

Reports indicate that there was tension between Rennie and the board over his focus and direction, although Domino's announcement said he was stepping down “by mutual agreement”.

New Brand Introduction

In the autumn, Domino's launched its Chick 'N' Dip brand – which the former chief described as a “major strategic shift” for the group – and is piloting it in 210 outlets in the North West region and the province.

While the business is still going to roll it out across its almost 1,400 stores next year as intended, it regards fried chicken as an addition to its main pizza offerings.

Board Statement

Ian Bull, the company chairman, stated: “Directors think that there are a series of prospects to enhance value and profitability in the main pizza segment. We are prioritizing identifying the right chief executive to direct the careful implementation of that development approach.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales declined by 1.5 percent in the latest quarter. In the summer, it alerted that the food delivery sector had “intensified” as it attributed weaker consumer confidence in the lead-up to the budget and rising wage costs for disappointing revenue and a 15% drop in interim earnings.

Rival chains are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a month ago, after the firm behind its UK venues entered insolvency.

Wellness Initiatives

Adapting to market shifts towards healthier eating, the company has rolled out light products, such as its thin-crust line of bakes below 400 kcals as well as vegan and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A big margherita has over 2,100, while a personal has under 1,000 calories.

Interim Leadership

Nicola Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she does not want to take on the top job long-term.

She said: “The company has a several ongoing growth and performance initiatives that we will be dedicated to implementing at speed.”

She added these included ongoing development on the company's supply chain and new item creation, and its customer retention initiative.

Domino's is also lacking a permanent finance director until 16 March, when Andrea starts from the Irish cider and beer maker a well-known firm. Until then, Richard Snow acts as interim finance chief.