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A boss of Domino's Pizza Group who proposed the UK might have hit pizza saturation while diversifying the chain into fried chicken has been replaced after tensions with its directors.

Leadership Transition

Rennie is leaving after only 24 months in the top role, and will be replaced on an interim basis by the company's operations head, Frampton, while the pizza giant seeks a new leader.

Rennie, who was with Domino's for over 20 years, had attempted to shift the UK's leading pizza food delivery firm towards fried chicken, remarking recently there was not “huge potential” left in the UK's pizza market. He observed poultry was the most rapidly expanding protein in the international market.

Board Friction

It is understood that there was friction between the CEO and the directors over his approach and direction, although the company's announcement said he was leaving “by mutual agreement”.

Recent Brand Introduction

In September, the chain launched its Chick 'N' Dip brand – which Rennie described as a “major strategic shift” for the group – and is trialling it in over 200 locations in the north-west of England and the province.

While the business is still planning to expand it across its extensive network next year as intended, it considers chicken products as complementary to its primary pizza operations.

Leadership Statement

Ian Bull, the company chairman, commented: “Directors think that there are a range of possibilities to enhance value and performance improvement in our primary operations. We are focused on finding the right chief executive to lead the careful implementation of that development approach.”

Market Challenges

Recently, Domino's, which has millions of users in the UK and Ireland, said transactions fell by 1.5 percent in the Q3. In the summer, it cautioned that the quick-service industry had “intensified” as it blamed weaker consumer confidence in the lead-up to the budget and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Competitors are also struggling. Another major chain disclosed the closure of multiple locations a last month, after the business behind its outlets faced financial collapse.

Health Initiatives

Adapting to market shifts towards balanced diets, the company has introduced lower-calorie options, such as its Thin & Crispy selection of bakes below 400 kcal as well as plant-based and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has 909 calories.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and had a background at the betting firm William Hill. It is understood that she prefers not to occupy the chief executive role long-term.

She commented: “Our team has a several ongoing growth and efficiency programs that we will be concentrating on executing at speed.”

Frampton noted these comprised ongoing development on the company's procurement system and product development, and its loyalty scheme.

The pizza chain is also lacking a full-time chief financial officer until 16 March, when a new appointee starts from the Irish cider and beer maker C&C Group. Until then, Snow is interim finance chief.