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The head of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while diversifying the chain into poultry items has been replaced after tensions with its governing body.

Leadership Transition

Rennie is exiting after only 24 months in charge, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who worked for Domino's for more than two decades, had attempted to shift the UK's biggest pizza takeaway chain towards chicken offerings, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He observed chicken was the most rapidly expanding menu item in the world.

Governance Friction

It is understood that there was friction between the CEO and the governance team over his approach and business vision, although Domino's official statement said he was leaving “through mutual consent”.

Recent Brand Introduction

In the autumn, Domino's launched its Chick 'N' Dip offering – which Rennie described as a “significant new phase” for the group – and is piloting it in select stores in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its extensive network next year as scheduled, it views chicken products as a supplement for its primary pizza operations.

Leadership Comment

Bull, the Domino's chair, stated: “The board believes that there are a range of possibilities to boost expansion and performance improvement in the main pizza segment. We are concentrating on selecting the suitable leader to oversee the careful implementation of that expansion plan.”

Industry Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by 1.5 percent in the third quarter. In August, it warned that the food delivery sector had “become tougher” as it attributed reduced spending in the lead-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.

Competitors are also struggling. Pizza Hut revealed the shutting of dozens of outlets a month ago, after the company behind its UK venues fell into administration.

Health Efforts

Adapting to consumer trends towards healthier eating, the company has rolled out lower-calorie items, such as its light base line of bakes below 400 kcals as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.

Acting 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 assume the chief executive role long-term.

She said: “The company has a multiple active development and operational projects that we will be focused on carrying out at pace.”

Frampton noted these comprised further work on the company's procurement system and menu innovation, and its customer retention initiative.

The pizza chain is also without a permanent CFO until March 16, when Andy Andrea starts from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow acts as interim finance chief.