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A chief executive of Domino's Pizza Group who proposed the UK might have hit peak pizza while expanding the chain into fried chicken has been removed after tensions with its directors.

Leadership Transition

Rennie is leaving after only 24 months in the top role, and will be replaced on an temporary basis by the organization's operations head, Nicola Frampton, while Domino's searches for a long-term chief.

The outgoing executive, who was with Domino's for a substantial period, had sought to shift the UK's leading pizza takeaway chain towards poultry-based products, stating recently there was not “huge potential” left in the pizza sector in the UK. He observed chicken was the fastest-growing menu item in the globe.

Governance Tensions

It is understood that there was friction between the CEO and the governance team over his strategy and business vision, although the company's release said he was stepping down “as a joint decision”.

New Product Launch

In September, the chain unveiled its poultry offering – which Rennie referred to as a “significant new phase” for the group – and is trialling it in select stores in the North West region and Northern Ireland.

While the business is still planning to expand it across its almost 1,400 stores in the coming year as scheduled, it views chicken products as a supplement for its main pizza offerings.

Leadership Statement

Bull, the company chair, commented: “Directors think that there are a number of opportunities to enhance value and profitability in our primary operations. We are prioritizing finding the suitable leader to lead the disciplined execution of that development approach.”

Market Difficulties

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions declined by one and a half percent in the Q3. In August, it alerted that the quick-service industry had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in half-year profits.

Competitors are also experiencing difficulties. Another major chain announced the closing of dozens of outlets a month ago, after the firm behind its UK venues entered insolvency.

Health Efforts

Adapting to customer preferences towards healthier eating, Domino's has rolled out light items, such as its light base line of pizzas below 400 kcals as well as vegan and allergy-friendly options. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171, while a small has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and was formerly with the betting firm William Hill. It is thought that she prefers not to take on the CEO position long-term.

She commented: “We have a several ongoing expansion and efficiency programs that we will be concentrating on implementing at pace.”

She said these involved additional efforts on the organization's supply chain and new item creation, and its loyalty scheme.

The pizza chain is also in need of a permanent chief financial officer until 16 March, when Andrea joins from the drinks company C&C Group. In the meantime, Snow is acting financial officer.