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A head of Domino's Pizza Group who proposed the UK might have reached peak pizza while broadening the franchise into chicken products has been replaced after tensions with its governing body.

Leadership Shake-Up

The former CEO is departing after just two years in the top role, and will be succeeded on an interim basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a permanent CEO.

The outgoing executive, who was with the company for a substantial period, had aimed to pivot Britain's largest pizza food delivery firm towards poultry-based products, stating earlier this month there was not “massive growth” left in the British pizza industry. He said chicken was the quickest rising food category in the international market.

Board Tensions

Sources suggest that there was tension between Rennie and the governance team over his focus and business vision, although Domino's official statement said he was departing “as a joint decision”.

New Product Launch

In the autumn, Domino's unveiled its chicken-focused product line – which Rennie called a “significant new phase” for the organization – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.

While the firm is still planning to expand it across its almost 1,400 stores next year as planned, it views chicken products as an addition to its primary pizza operations.

Leadership Comment

Ian Bull, the company chairman, said: “We are confident that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are concentrating on finding the ideal CEO to direct the systematic rollout of that growth strategy.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said orders fell by one and a half percent in the third quarter. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it attributed economic uncertainty in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15 percent decline in six-month income.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closure of dozens of outlets a month ago, after the business behind its UK venues faced financial collapse.

Wellness Efforts

Adapting to market shifts towards healthier eating, Domino's has rolled out light products, such as its light base line of pizzas below 400 kcal as well as meat-free and wheat-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a personal has 909 calories.

Interim Management

Frampton has been with Domino's since the recent past, and previously worked for the gaming group William Hill. It is thought that she does not want to take on the chief executive role permanently.

She said: “We have a multiple current development and efficiency programs that we will be dedicated to carrying out at speed.”

She added these included additional efforts on the company's supply chain and menu innovation, and its rewards program.

The pizza chain is also in need of a long-term CFO until 16 March, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. Until then, Snow acts as acting financial officer.