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A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while broadening the franchise into fried chicken has been removed after disagreements with its governing body.

Leadership Shake-Up

The former CEO is leaving after just two years in the top role, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a new leader.

The outgoing executive, who worked for Domino's for more than two decades, had aimed to pivot Britain's biggest pizza takeaway chain towards chicken offerings, remarking recently there was not “huge potential” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding protein in the globe.

Board Friction

Reports indicate that there was tension between Rennie and the directors over his strategy and management style, although Domino's announcement said he was leaving “as a joint decision”.

New Product Introduction

In the autumn, Domino's launched its chicken-focused product line – which Rennie described as a “major strategic shift” for the group – and is trialling it in over 200 locations in the north-west of England and the province.

While the firm is still planning to expand it across its almost 1,400 stores next year as intended, it views chicken products as a supplement for its core pizza business.

Board Statement

The Domino's chair, the Domino's chairman, said: “Directors think that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are prioritizing identifying the suitable leader to direct the disciplined execution of that development approach.”

Industry Challenges

Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions declined by 1.5% in the latest quarter. In August, it warned that the quick-service industry had “intensified” as it attributed weaker consumer confidence in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in interim earnings.

Competitors are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a recently, after the company behind its UK venues faced financial collapse.

Health Initiatives

Trying to keep up with market shifts towards better nutrition, Domino's has introduced reduced-calorie products, such as its thin-crust range of bakes below 400 kcals as well as plant-based and gluten-free options. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171, while a individual has 909 kcal.

Acting Management

The interim chief has been with the company since the recent past, and previously worked for the gambling company William Hill. It is thought that she does not want to take on the top job on a full-time basis.

She said: “The company has a several ongoing expansion and operational projects that we will be concentrating on carrying out at pace.”

She said these included ongoing development on the company's supply chain and menu innovation, and its loyalty scheme.

The pizza chain is also without a permanent finance director until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Richard Snow acts as temporary CFO.