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The head of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit maximum pizza demand while diversifying the company into chicken products has been ousted after disagreements with its board.

Leadership Change

The former CEO is leaving after just two years in the top role, and will be replaced on an interim basis by the company's operations head, Frampton, while Domino's seeks a permanent CEO.

Rennie, who worked for Domino's for a substantial period, had sought to pivot Britain's biggest pizza food delivery firm towards chicken offerings, remarking recently there was not “huge potential” left in the UK's pizza market. He said poultry was the fastest-growing food category in the globe.

Board Disagreements

It is understood that there was friction between the CEO and the directors over his approach and management style, although Domino's announcement said he was stepping down “through mutual consent”.

New Product Launch

In the autumn, Domino's introduced its Chick 'N' Dip product line – which Rennie called a “significant new phase” for the company – and is trialling it in select stores in the north-west of England and the province.

While the firm is still planning to expand it across its nearly 1,400 branches next year as scheduled, it regards fried chicken as a supplement for its core pizza business.

Board Comment

Bull, the company chairman, said: “The board believes that there are a number of opportunities to enhance value and performance improvement in the main pizza segment. We are focused on finding the ideal CEO to lead the disciplined execution of that expansion plan.”

Market Challenges

Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said sales dipped by 1.5 percent in the third quarter. In August, it cautioned that the takeaway market had “intensified” as it blamed economic uncertainty in the lead-up to the budget and rising wage costs for below-target performance and a 15 percent decline in interim earnings.

Competitors are also experiencing difficulties. Pizza Hut revealed the closing of multiple locations a recently, after the business behind its outlets fell into administration.

Wellness Efforts

Adapting to consumer trends towards balanced diets, Domino's has introduced light items, such as its light base selection of pizzas below 400 kcals as well as plant-based and gluten-free options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has under 1,000 calories.

Interim Leadership

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 assume the CEO position on a full-time basis.

Frampton stated: “Our team has a number of ongoing development and operational projects that we will be focused on executing at a rapid rate.”

Frampton noted these comprised further work on the company's procurement system and new item creation, and its loyalty scheme.

Domino's is also without a full-time finance director until 16 March, when Andy Andrea starts from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as acting financial officer.