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The boss of the UK's Domino's Pizza chain who suggested the UK might have reached maximum pizza demand while broadening the chain into poultry items has been replaced after conflicts with its governing body.

Executive Transition

The former CEO is exiting after only 24 months in the top role, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant looks for a long-term chief.

Rennie, who worked for the company for a substantial period, had sought to pivot the UK's biggest pizza takeaway chain towards poultry-based products, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding protein in the globe.

Governance Tensions

It is understood that there was disagreement between Rennie and the board over his focus and direction, although Domino's announcement said he was leaving “through mutual consent”.

Recent Product Launch

In the autumn, the chain launched its Chick 'N' Dip offering – which the former chief described as a “major strategic shift” for the group – and is testing it in over 200 locations in the north-west of England and Northern Ireland.

While the firm is still going to roll it out across its extensive network next year as intended, it views fried chicken as a supplement for its primary pizza operations.

Board Comment

The Domino's chair, the Domino's chair, commented: “We are confident that there are a series of prospects to boost expansion and profitability in our primary operations. We are concentrating on finding the right chief executive to direct the systematic rollout of that growth strategy.”

Market Difficulties

Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales declined by 1.5% in the third quarter. In the summer, it alerted that the takeaway market had “become tougher” as it attributed economic uncertainty in the lead-up to the government announcement and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.

Other pizza operators are also facing challenges. Pizza Hut disclosed the shutting of multiple locations a recently, after the company behind its UK venues fell into administration.

Wellness Initiatives

Responding to market shifts towards better nutrition, the company has rolled out reduced-calorie items, such as its thin-crust selection of pizzas below 400 kcal as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group William Hill. It is understood that she prefers not to occupy the chief executive role on a full-time basis.

She said: “Our team has a several active growth and operational projects that we will be dedicated to carrying out at pace.”

Frampton noted these included ongoing development on the organization's logistics network and new item creation, and its rewards program.

The pizza chain is also in need of a full-time CFO until the spring, when a new appointee joins from the beverage producer C&C Group. Until then, Snow serves as interim finance chief.