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The chief executive of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while expanding the company into chicken products has been replaced after tensions with its directors.

Executive Shake-Up

Rennie is leaving after only 24 months in charge, and will be replaced on an acting basis by the organization's operations head, Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who worked for the company for a substantial period, had aimed to shift the UK's biggest pizza delivery company towards poultry-based products, stating in a recent interview there was not “massive growth” left in the British pizza industry. He said chicken was the most rapidly expanding menu item in the international market.

Governance Tensions

Sources suggest that there was tension between the CEO and the directors over his focus and management style, although the company's official statement said he was stepping down “through mutual consent”.

New Product Launch

In the autumn, the chain launched its Chick 'N' Dip product line – which Rennie described as a “bold new chapter” for the group – and is trialling it in 210 outlets in the north-west of England and the province.

While the business is still intending to launch it across its nearly 1,400 branches next year as scheduled, it considers chicken products as complementary to its main pizza offerings.

Leadership Comment

Ian Bull, the Domino's chair, commented: “Directors think that there are a number of opportunities to boost expansion and value creation in the main pizza segment. We are prioritizing finding the ideal CEO to direct the systematic rollout of that development approach.”

Market Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders fell by one and a half percent in the third quarter. In the summer, it alerted that the quick-service industry had “become tougher” as it attributed reduced spending in the period before the government announcement and increasing labor expenses for below-target performance and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of dozens of outlets a recently, after the business behind its outlets entered insolvency.

Health Efforts

Adapting to consumer trends towards better nutrition, the company has introduced light products, such as its light base selection of bakes below 400 kcals as well as vegan and gluten-free pizzas. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a personal has 909 calories.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she prefers not to assume the chief executive role on a full-time basis.

She commented: “The company has a number of active growth and operational projects that we will be focused on executing at speed.”

She added these included additional efforts on the organization's logistics network and menu innovation, and its loyalty scheme.

The pizza chain is also lacking a permanent chief financial officer until the spring, when Andrea comes aboard from the Irish cider and beer maker a well-known firm. In the meantime, Snow acts as interim finance chief.