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A boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while diversifying the company into poultry items has been replaced after disagreements with its directors.

Executive Transition

The former CEO is exiting after a brief tenure in the top role, and will be succeeded on an acting basis by the organization's operations head, Nicola Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who worked for the company for more than two decades, had attempted to redirect the UK's largest pizza food delivery firm towards fried chicken, remarking earlier this month there was not “huge potential” left in the British pizza industry. He said poultry was the quickest rising food category in the international market.

Governance Tensions

It is understood that there was friction between the CEO and the directors over his strategy and business vision, although the company's release said he was stepping down “by mutual agreement”.

Recent Brand Launch

In the autumn, the chain introduced its chicken-focused brand – which Rennie described as a “bold new chapter” for the company – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the firm is still intending to launch it across its nearly 1,400 branches in the coming year as intended, it views fried chicken as an addition to its primary pizza operations.

Board Comment

Ian Bull, the company chair, said: “Directors think that there are a number of opportunities to enhance value and value creation in Domino's core business. We are focused on finding the suitable leader to lead the systematic rollout of that growth strategy.”

Market Challenges

Earlier this month, Domino's, which has millions of users in the UK and Ireland, said sales fell by 1.5 percent in the third quarter. In the summer, it cautioned 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 percent decline in six-month income.

Competitors are also experiencing difficulties. Pizza Hut revealed the closure of dozens of outlets a month ago, after the company behind its UK venues entered insolvency.

Wellness Efforts

Adapting to customer preferences towards better nutrition, the company has introduced reduced-calorie items, such as its thin-crust range of bakes below 400 calories as well as plant-based and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A family cheese pizza has over 2,100, while a individual has under 1,000 calories.

Interim Management

Nicola Frampton has been with Domino's since 2021, and previously worked for the betting firm William Hill. It is understood that she prefers not to take on the chief executive role on a full-time basis.

She commented: “Our team has a multiple current expansion and operational projects that we will be dedicated to executing at pace.”

Frampton noted these included additional efforts on the organization's logistics network and new item creation, and its customer retention initiative.

Domino's is also without a permanent CFO until March 16, when Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Richard Snow acts as temporary CFO.