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The boss of Domino's Pizza Group who proposed the UK might have hit pizza saturation while diversifying the company into chicken products has been replaced after conflicts with its board.

Leadership Transition

Rennie is exiting after a brief tenure in charge, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a permanent CEO.

The outgoing executive, who worked for the company for a substantial period, had aimed to shift Britain's biggest pizza delivery company towards fried chicken, stating earlier this month there was not “massive growth” left in the UK's pizza market. He said poultry was the fastest-growing food category in the globe.

Governance Friction

Sources suggest that there was friction between the CEO and the directors over his strategy and business vision, although Domino's announcement said he was departing “by mutual agreement”.

New Brand Launch

In the autumn, the chain unveiled its poultry brand – which the former chief described as a “major strategic shift” for the organization – and is testing it in over 200 locations in the north-west of England and the province.

While the company is still intending to launch it across its extensive network next year as planned, it views fried chicken as complementary to its primary pizza operations.

Board Comment

Bull, the Domino's chairman, commented: “The board believes that there are a range of possibilities to boost expansion and value creation in Domino's core business. We are concentrating on identifying the ideal CEO to direct the disciplined execution of that development approach.”

Industry Difficulties

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the lead-up to the budget and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Other pizza operators are also struggling. Another major chain announced the closure of multiple locations a recently, after the business behind its British operations faced financial collapse.

Wellness Efforts

Responding to market shifts towards better nutrition, the company has launched reduced-calorie items, such as its light base range of pizzas below 400 calories as well as meat-free and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171, while a small has 909 calories.

Acting Leadership

The interim chief has been with the company since the recent past, and had a background at the betting firm a well-known operator. It is believed that she is not seeking to occupy the chief executive role permanently.

Frampton stated: “The company has a several active growth and operational projects that we will be focused on implementing at speed.”

She added these included additional efforts on the organization's procurement system and product development, and its customer retention initiative.

The pizza chain is also lacking a long-term CFO until March 16, when Andrea starts from the drinks company C&C Group. In the meantime, Snow acts as interim finance chief.