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The chief executive of Domino's Pizza Group who suggested the United Kingdom might have hit pizza saturation while diversifying the company into chicken products has been replaced after conflicts with its board.

Executive Change

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

The outgoing executive, who was with Domino's for a substantial period, had aimed to redirect the UK's biggest pizza food delivery firm towards chicken offerings, commenting recently there was not “significant expansion” left in the UK's pizza market. He noted poultry was the fastest-growing menu item in the international market.

Governance Friction

Sources suggest that there was friction between Rennie and the governance team over his focus and direction, although the company's release said he was stepping down “as a joint decision”.

New Brand Launch

In September, the chain introduced its poultry offering – which the former chief described as a “major strategic shift” for the company – and is testing it in 210 outlets in the North West region and Northern Ireland.

While the company is still going to roll it out across its extensive network in the coming year as intended, it regards chicken products as an addition to its main pizza offerings.

Board Comment

The Domino's chair, the company chairman, commented: “Directors think that there are a range of possibilities to drive further growth and value creation in our primary operations. We are focused on selecting the ideal CEO to oversee the careful implementation of that expansion plan.”

Industry Difficulties

Recently, Domino's, which has a substantial customer base in the UK and Ireland, said transactions dipped by one and a half percent in the third quarter. In August, it alerted that the food delivery sector had “become tougher” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15% drop in interim earnings.

Rival chains are also experiencing difficulties. Another major chain disclosed the closing of multiple locations a month ago, after the business behind its British operations faced financial collapse.

Health Efforts

Adapting to customer preferences towards healthier eating, Domino's has rolled out lower-calorie products, such as its light base range of pizzas below 400 kcals as well as vegan and allergy-friendly options. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has under 1,000 calories.

Interim Leadership

The interim chief has been with the company since 2021, 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: “We have a number of ongoing growth and efficiency programs that we will be focused on executing at pace.”

She said these involved additional efforts on the organization's procurement system and new item creation, and its rewards program.

The pizza chain is also in need of a full-time chief financial officer until March 16, when Andy Andrea comes aboard from the beverage producer a well-known firm. Until then, Snow acts as temporary CFO.