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The chief executive of Domino's Pizza Group who proposed the UK might have hit pizza saturation while diversifying the company into poultry items has been replaced after conflicts with its board.

Leadership Transition

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

The outgoing executive, who served at the company for a substantial period, had sought to pivot the UK's largest pizza food delivery firm towards poultry-based products, stating in a recent interview there was not “massive growth” left in the UK's pizza market. He said poultry was the fastest-growing menu item 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 official statement said he was leaving “by mutual agreement”.

Recent Product Launch

In September, Domino's unveiled its chicken-focused product line – which Rennie described as a “significant new phase” for the organization – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the firm is still intending to launch it across its extensive network in the coming year as planned, it considers chicken products as complementary to its primary pizza operations.

Board Comment

The Domino's chair, the Domino's chair, said: “We are confident that there are a range of possibilities to enhance value and performance improvement in the main pizza segment. We are concentrating on identifying the right chief executive to direct the disciplined execution of that growth strategy.”

Market Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5 percent in the third quarter. In August, it alerted that the food delivery sector had “intensified” as it blamed reduced spending in the lead-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in half-year profits.

Competitors are also struggling. Pizza Hut announced the closure of multiple locations a month ago, after the firm behind its UK venues entered insolvency.

Health Efforts

Adapting to consumer trends towards balanced diets, Domino's has launched light options, such as its Thin & Crispy line of bakes below 400 calories as well as plant-based and allergy-friendly options. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.

Acting Leadership

The interim chief has been with Domino's since the recent past, and previously worked for the gambling company William Hill. It is thought that she is not seeking to assume the top job long-term.

She commented: “We have a several current development and efficiency programs that we will be concentrating on implementing at pace.”

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

Domino's is also lacking a long-term finance director until 16 March, when Andy Andrea joins from the beverage producer C&C Group. For now, Richard Snow acts as acting financial officer.