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A boss of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while diversifying the chain into fried chicken has been replaced after conflicts with its governing body.

Executive Transition

The former CEO is leaving after a brief tenure in the top role, and will be replaced on an acting basis by the company's chief operating officer, Frampton, while Domino's seeks a long-term chief.

Rennie, who worked for Domino's for over 20 years, had attempted to redirect the UK's biggest pizza food delivery firm towards fried chicken, stating in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the quickest rising menu item in the world.

Governance Friction

Sources suggest that there was tension between the CEO and the board over his strategy and business vision, although Domino's official statement said he was stepping down “by mutual agreement”.

New Product Launch

In September, the chain unveiled its poultry brand – which the former chief described as a “major strategic shift” for the group – and is trialling it in 210 outlets in the North West region and the province.

While the company is still intending to launch it across its almost 1,400 stores next year as planned, it views chicken products as an addition to its primary pizza operations.

Board Statement

Bull, the Domino's chair, stated: “We are confident that there are a series of prospects to drive further growth and profitability in Domino's core business. We are prioritizing identifying the suitable leader to oversee the systematic rollout of that growth strategy.”

Market Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said transactions fell by 1.5% in the latest quarter. In August, it cautioned that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the government announcement and higher payroll outlays for below-target performance and a 15 percent decline in six-month income.

Other pizza operators are also experiencing difficulties. Pizza Hut announced the closing of multiple locations a recently, after the firm behind its outlets faced financial collapse.

Health Initiatives

Responding to consumer trends towards balanced diets, the company has introduced light products, such as its thin-crust selection of pizzas below 400 kcal as well as meat-free and gluten-free pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 kcal.

Acting Leadership

Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to assume the top job long-term.

Frampton stated: “Our team has a number of ongoing development and efficiency programs that we will be dedicated to implementing at a rapid rate.”

She said these comprised additional efforts on the organization's supply chain and new item creation, and its loyalty scheme.

The pizza chain is also lacking a long-term CFO until 16 March, when a new appointee joins from the beverage producer a well-known firm. Until then, Richard Snow acts as temporary CFO.