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The chief executive of Domino's Pizza Group who suggested the UK might have reached pizza saturation while broadening the chain into poultry items has been removed after disagreements with its board.

Executive Shake-Up

The former CEO is exiting after a brief tenure in leadership, and will be replaced on an acting basis by the company's chief operating officer, Frampton, while Domino's looks for a long-term chief.

The outgoing executive, who worked for Domino's for a substantial period, had aimed to shift the UK's largest pizza delivery company towards fried chicken, remarking in a recent interview there was not “huge potential” left in the pizza sector in the UK. He said poultry was the most rapidly expanding protein in the international market.

Board Disagreements

Sources suggest that there was friction between Rennie and the directors over his strategy and business vision, although the company's official statement said he was leaving “by mutual agreement”.

Recent Brand Introduction

In September, the chain launched its Chick 'N' Dip product line – which the former chief described as a “major strategic shift” for the organization – and is piloting it in select stores in the North West region and Northern Ireland.

While the firm is still intending to launch it across its nearly 1,400 branches next year as scheduled, it regards fried chicken as complementary to its core pizza business.

Board Statement

The Domino's chair, the Domino's chair, said: “Directors think that there are a range of possibilities to enhance value and profitability in Domino's core business. We are focused on identifying the right chief executive to lead the disciplined execution of that expansion plan.”

Industry Challenges

Recently, Domino's, which has millions of users in the British Isles, said transactions fell by 1.5% in the third quarter. In August, it cautioned that the quick-service industry had “intensified” as it attributed reduced spending in the period before the government announcement and higher payroll outlays for disappointing revenue and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the shutting of 68 restaurants a recently, after the business behind its outlets entered insolvency.

Health Efforts

Adapting to market shifts towards balanced diets, Domino's has introduced lower-calorie products, such as its Thin & Crispy line of bakes below 400 calories as well as meat-free and wheat-free options. A big pepperoni bake has 2,311 kcals. A family cheese pizza has over 2,100, while a small has under 1,000 calories.

Interim Management

Nicola Frampton has been with the company since the recent past, and had a background at the betting firm William Hill. It is thought that she prefers not to assume the chief executive role permanently.

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

She added these comprised additional efforts on the company's logistics network and new item creation, and its loyalty scheme.

The pizza chain is also without a long-term chief financial officer until the spring, when Andrea comes aboard from the beverage producer C&C Group. In the meantime, Richard Snow acts as acting financial officer.