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A boss of Domino's Pizza Group who indicated the UK might have reached peak pizza while broadening the chain into poultry items has been removed after disagreements with its directors.

Leadership Change

The former CEO is departing after only 24 months in the top role, and will be replaced on an interim basis by the organization's chief operating officer, Nicola Frampton, while Domino's searches for a long-term chief.

Rennie, who served at the company for over 20 years, had sought to pivot Britain's largest pizza food delivery firm towards chicken offerings, remarking earlier this month there was not “significant expansion” left in the UK's pizza market. He noted poultry was the quickest rising food category in the international market.

Governance Friction

Sources suggest that there was friction between the CEO and the board over his focus and direction, although the company's release said he was stepping down “as a joint decision”.

Recent Brand Introduction

In the autumn, Domino's launched its Chick 'N' Dip product line – which Rennie described as a “major strategic shift” for the company – and is trialling it in 210 outlets in the North West region and the province.

While the business is still planning to expand it across its extensive network next year as intended, it regards fried chicken as complementary to its primary pizza operations.

Board Comment

Ian Bull, the Domino's chair, commented: “We are confident that there are a series of prospects to enhance value and profitability in our primary operations. We are focused on identifying the suitable leader to direct the careful implementation of that growth strategy.”

Market Difficulties

Recently, Domino's, which has millions of users in the British Isles, said sales dipped by 1.5 percent in the third quarter. In the summer, it alerted that the food delivery sector had “intensified” as it blamed weaker consumer confidence in the period before the budget and rising wage costs for weaker-than-expected sales and a 15% drop in interim earnings.

Rival chains are also experiencing difficulties. Another major chain announced the closure of 68 restaurants a last month, after the business behind its UK venues fell into administration.

Health Initiatives

Trying to keep up with market shifts towards balanced diets, Domino's has rolled out light products, such as its thin-crust selection of pizzas below 400 kcals as well as meat-free and gluten-free options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171, while a personal has 909 kcal.

Acting Management

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

She said: “Our team has a several current development and performance initiatives that we will be dedicated to implementing at speed.”

Frampton noted these involved additional efforts on the organization's procurement system and new item creation, and its customer retention initiative.

The pizza chain is also without a permanent chief financial officer until March 16, when a new appointee starts from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as temporary CFO.