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A chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while expanding the franchise into poultry items has been replaced after conflicts with its governing body.

Leadership Change

Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who was with Domino's for over 20 years, had attempted to redirect Britain's biggest pizza food delivery firm towards poultry-based products, stating earlier this month there was not “huge potential” left in the British pizza industry. He noted poultry was the most rapidly expanding menu item in the world.

Governance Disagreements

It is understood that there was tension between Rennie and the board over his focus and direction, although the company's announcement said he was leaving “through mutual consent”.

New Brand Launch

In the autumn, Domino's launched its Chick 'N' Dip product line – which the former chief described as a “major strategic shift” for the company – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the business is still planning to expand it across its almost 1,400 stores in the coming year as planned, it considers fried chicken as an addition to its primary pizza operations.

Leadership Comment

Ian Bull, the company chair, stated: “Directors think that there are a series of prospects to enhance value and profitability in the main pizza segment. We are focused on finding the ideal CEO to lead the disciplined execution of that development approach.”

Industry Challenges

Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said orders dipped by 1.5 percent in the latest quarter. In August, it warned that the quick-service industry had “grown more challenging” as it blamed reduced spending in the lead-up to the government announcement and rising wage costs for below-target performance and a significant fall in half-year profits.

Competitors are also experiencing difficulties. Pizza Hut disclosed the shutting of 68 restaurants a last month, after the business behind its outlets entered insolvency.

Wellness Efforts

Adapting to customer preferences towards better nutrition, Domino's has rolled out lower-calorie options, such as its light base range of bakes below 400 kcal as well as vegan and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171, while a small has under 1,000 calories.

Acting Management

The interim chief has been with Domino's since the recent past, and was formerly with the gambling company William Hill. It is understood that she is not seeking to occupy the CEO position permanently.

She commented: “We have a several ongoing growth and efficiency programs that we will be dedicated to executing at a rapid rate.”

She added these comprised ongoing development on the organization's logistics network and menu innovation, and its loyalty scheme.

The pizza chain is also lacking a long-term chief financial officer until the spring, when Andrea starts from the Irish cider and beer maker C&C Group. For now, Snow is interim finance chief.