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A head of Domino's Pizza Group who indicated the United Kingdom might have reached peak pizza while diversifying the chain into chicken products has been removed after disagreements with its governing body.

Leadership Shake-Up

Rennie is leaving after only 24 months in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's seeks a new leader.

The outgoing executive, who was with the company for over 20 years, had attempted to pivot Britain's biggest pizza food delivery firm towards chicken offerings, remarking recently there was not “huge potential” left in the UK's pizza market. He noted chicken was the quickest rising protein in the international market.

Board Disagreements

Sources suggest that there was friction between the CEO and the governance team over his approach and business vision, although Domino's release said he was stepping down “through mutual consent”.

New Brand Launch

In September, the chain introduced its chicken-focused offering – which the former chief referred to 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 going to roll it out across its nearly 1,400 branches in the coming year as intended, it considers fried chicken as complementary to its core pizza business.

Board Comment

The Domino's chair, the company chairman, said: “The board believes that there are a series of prospects to enhance value and performance improvement in our primary operations. We are concentrating on identifying the right chief executive to oversee the systematic rollout of that growth strategy.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said sales fell by 1.5% in the Q3. In the summer, it cautioned that the takeaway market had “intensified” as it attributed economic uncertainty in the run-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the shutting of multiple locations a month ago, after the firm behind its British operations fell into administration.

Health Initiatives

Trying to keep up with consumer trends towards healthier eating, the company has introduced lower-calorie products, such as its Thin & Crispy line of pizzas below 400 kcal as well as meat-free and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a individual has 909 calories.

Interim Management

The interim chief has been with the company since the recent past, and was formerly with the gambling company a well-known operator. It is understood that she prefers not to occupy the CEO position on a full-time basis.

She commented: “Our team has a number of ongoing growth and efficiency programs that we will be focused on implementing at a rapid rate.”

Frampton noted these comprised further work on the organization's logistics network and product development, and its loyalty scheme.

Domino's is also lacking a permanent CFO until 16 March, when a new appointee starts from the beverage producer C&C Group. In the meantime, Richard Snow is temporary CFO.