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The boss of the UK's Domino's Pizza chain who suggested the UK might have reached peak pizza while broadening the company into poultry items has been replaced after tensions with its board.

Leadership Change

Rennie is leaving after a brief tenure in charge, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.

The outgoing executive, who worked for Domino's for over 20 years, had aimed to pivot Britain's leading pizza delivery company towards fried chicken, stating recently there was not “massive growth” left in the British pizza industry. He said poultry was the fastest-growing food category in the international market.

Governance Friction

It is understood that there was friction between Rennie and the board over his approach and management style, although Domino's official statement said he was departing “through mutual consent”.

Recent Brand Launch

In September, Domino's unveiled its chicken-focused brand – which the former chief referred to as a “significant new phase” for the company – and is testing it in select stores in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its almost 1,400 stores in the coming year as scheduled, it considers chicken products as complementary to its primary pizza operations.

Board Comment

Ian Bull, the Domino's chair, commented: “Directors think that there are a series of prospects to drive further growth and profitability in Domino's core business. We are concentrating on finding the right chief executive to lead the disciplined execution of that development approach.”

Market Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions fell by 1.5% in the third quarter. In the summer, it cautioned that the takeaway market had “grown more challenging” as it blamed reduced spending in the period before the government announcement and rising wage costs for disappointing revenue and a 15% drop in six-month income.

Competitors are also struggling. Pizza Hut announced the closure of multiple locations a month ago, after the company behind its British operations entered insolvency.

Wellness Initiatives

Trying to keep up with consumer trends towards balanced diets, Domino's has introduced lower-calorie products, such as its Thin & Crispy selection of pizzas below 400 kcal as well as plant-based and wheat-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171 kcal, while a personal has 909 kcal.

Interim Management

Frampton has been with Domino's since the recent past, and had a background at the betting firm a well-known operator. It is believed that she does not want to assume the chief executive role permanently.

Frampton stated: “We have a number of active expansion and performance initiatives that we will be focused on carrying out at pace.”

She said these included ongoing development on the organization's supply chain and menu innovation, and its loyalty scheme.

The pizza chain is also lacking a permanent chief financial officer until 16 March, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Snow acts as interim finance chief.