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The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while broadening the chain into chicken products has been replaced after conflicts with its governing body.

Executive Transition

The former CEO is exiting after just two years in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a permanent CEO.

The outgoing executive, who worked for Domino's for a substantial period, had sought to pivot the UK's biggest pizza delivery company towards chicken offerings, stating recently there was not “significant expansion” left in the pizza sector in the UK. He observed poultry was the quickest rising protein in the globe.

Governance Friction

It is understood that there was friction between Rennie and the governance team over his focus and direction, although Domino's official statement said he was stepping down “by mutual agreement”.

New Product Introduction

In the autumn, Domino's introduced its poultry product line – which Rennie called a “significant new phase” for the company – and is testing it in select stores in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its nearly 1,400 branches next year as intended, it regards chicken products as an addition to its main pizza offerings.

Leadership Statement

Bull, the Domino's chairman, stated: “Directors think that there are a series of prospects to enhance value and performance improvement in the main pizza segment. We are focused on finding the suitable leader to direct the disciplined execution of that expansion plan.”

Industry Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said orders declined by one and a half percent in the Q3. In August, it warned that the takeaway market had “grown more challenging” as it blamed weaker consumer confidence in the lead-up to the budget and increasing labor expenses for below-target performance and a 15% drop in interim earnings.

Competitors are also struggling. Pizza Hut announced the closing of 68 restaurants a month ago, after the company behind its outlets entered insolvency.

Health Initiatives

Responding to customer preferences towards balanced diets, Domino's has rolled out reduced-calorie products, such as its thin-crust range of bakes below 400 calories as well as vegan and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is believed that she does not want to assume the top job long-term.

She commented: “Our team has a several current development and efficiency programs that we will be concentrating on carrying out at pace.”

She added these included further work on the company's procurement system and product development, and its loyalty scheme.

The pizza chain is also without a full-time finance director until March 16, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. For now, Snow acts as interim finance chief.