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

Executive Change

Rennie is departing after only 24 months in charge, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a permanent CEO.

Rennie, who was with Domino's for a substantial period, had aimed to redirect Britain's leading pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “huge potential” left in the UK's pizza market. He said chicken was the quickest rising protein in the international market.

Governance Friction

Sources suggest that there was disagreement between the CEO and the directors over his approach and management style, although the company's official statement said he was stepping down “by mutual agreement”.

Recent Product Introduction

In the autumn, Domino's unveiled its Chick 'N' Dip brand – which the former chief referred to as a “major strategic shift” for the group – and is testing it in select stores in the North West region and the province.

While the firm is still going to roll it out across its nearly 1,400 branches next year as scheduled, it considers chicken products as complementary to its core pizza business.

Leadership Comment

The Domino's chair, the company chairman, stated: “Directors think that there are a series of prospects to enhance value and performance improvement in the main pizza segment. We are focused on selecting the right chief executive to oversee the systematic rollout of that expansion plan.”

Industry Challenges

Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions dipped by one and a half percent in the Q3. In August, it alerted that the food delivery sector had “intensified” as it attributed reduced spending in the period before the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in six-month income.

Rival chains are also facing challenges. Pizza Hut announced the shutting of 68 restaurants a recently, after the firm behind its UK venues fell into administration.

Health Initiatives

Responding to market shifts towards balanced diets, the company has launched lower-calorie options, such as its Thin & Crispy line of pizzas below 400 kcals as well as vegan and allergy-friendly options. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is believed that she is not seeking to take on the CEO position on a full-time basis.

Frampton stated: “The company has a multiple ongoing growth and operational projects that we will be focused on implementing at a rapid rate.”

Frampton noted these included ongoing development on the organization's logistics network and new item creation, and its loyalty scheme.

Domino's is also without a permanent CFO until 16 March, when a new appointee joins from the Irish cider and beer maker C&C Group. For now, Snow is temporary CFO.