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A chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached maximum pizza demand while expanding the franchise into chicken products has been removed after conflicts with its directors.

Executive Transition

The former CEO is exiting after a brief tenure in charge, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a permanent CEO.

Rennie, who worked for the company for a substantial period, had attempted to redirect the UK's biggest pizza delivery company towards chicken offerings, stating in a recent interview there was not “massive growth” left in the pizza sector in the UK. He said chicken was the most rapidly expanding protein in the world.

Governance Tensions

It is understood that there was tension between the CEO and the board over his approach and direction, although the company's release said he was stepping down “by mutual agreement”.

New Product Introduction

In the autumn, Domino's unveiled its Chick 'N' Dip product line – which the former chief referred to as a “significant new phase” for the company – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the firm is still planning to expand it across its almost 1,400 stores in the coming year as planned, it views fried chicken as a supplement for its core pizza business.

Leadership Statement

Ian Bull, the company chairman, commented: “We are confident that there are a range of possibilities to boost expansion and performance improvement in the main pizza segment. We are prioritizing identifying the ideal CEO to oversee the disciplined execution of that expansion plan.”

Market Challenges

In the latest update, Domino's, which has millions of users in the British Isles, said transactions declined by 1.5 percent in the third quarter. In the summer, it alerted that the food delivery sector had “become tougher” as it attributed economic uncertainty in the run-up to the government announcement and rising wage costs for below-target performance and a 15% drop in half-year profits.

Rival chains are also experiencing difficulties. Another major chain revealed the shutting of multiple locations a recently, after the business behind its UK venues entered insolvency.

Wellness Initiatives

Responding to consumer trends towards balanced diets, Domino's has launched reduced-calorie products, such as its thin-crust selection of bakes below 400 kcals as well as meat-free and wheat-free pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.

Acting Management

The interim chief has been with the company since the recent past, and had a background at the gaming group William Hill. It is understood that she prefers not to take on the top job permanently.

She said: “We have a several ongoing development and performance initiatives that we will be focused on implementing at pace.”

Frampton noted these included ongoing development on the company's supply chain and product development, and its rewards program.

Domino's is also without a permanent finance director until 16 March, when Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow acts as interim finance chief.