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The chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while expanding the company into poultry items has been ousted after disagreements with its governing body.

Leadership Shake-Up

The former CEO is leaving after only 24 months in charge, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.

Rennie, who was with the company for over 20 years, had aimed to redirect the UK's biggest pizza takeaway chain towards poultry-based products, stating recently there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding protein in the world.

Governance Friction

Reports indicate that there was tension between Rennie and the governance team over his focus and management style, although Domino's announcement said he was departing “through mutual consent”.

New Product Launch

In the autumn, Domino's unveiled its Chick 'N' Dip brand – which Rennie called a “bold new chapter” for the group – and is trialling it in select stores in the north-west of England and the province.

While the business is still going to roll it out across its almost 1,400 stores next year as intended, it views chicken products as complementary to its primary pizza operations.

Leadership Comment

Ian Bull, the company chair, said: “The board believes that there are a series of prospects to enhance value and value creation in Domino's core business. We are focused on identifying the right chief executive to direct the systematic rollout of that expansion plan.”

Market Difficulties

Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5% in the third quarter. In the summer, it warned that the quick-service industry had “grown more challenging” as it attributed economic uncertainty in the lead-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15% drop in six-month income.

Competitors are also struggling. Another major chain announced the shutting of dozens of outlets a last month, after the firm behind its British operations fell into administration.

Health Efforts

Responding to consumer trends towards better nutrition, Domino's has introduced lower-calorie options, such as its light base range of pizzas below 400 kcals as well as plant-based and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has over 2,100, while a small has 909 calories.

Acting Management

The interim chief has been with the company since 2021, and had a background at the gambling company a well-known operator. It is understood that she does not want to assume the CEO position on a full-time basis.

She commented: “The company has a multiple current expansion and efficiency programs that we will be dedicated to executing at speed.”

She said these comprised additional efforts on the company's logistics network and menu innovation, and its rewards program.

The pizza chain is also in need of a permanent CFO until 16 March, when a new appointee starts from the Irish cider and beer maker C&C Group. Until then, Snow is acting financial officer.