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

Executive Shake-Up

Rennie is leaving after a brief tenure in the top role, and will be replaced on an interim basis by the organization's operations head, Nicola Frampton, while Domino's searches for a long-term chief.

Rennie, who served at the company for more than two decades, had attempted to pivot Britain's biggest pizza delivery company towards chicken offerings, remarking in a recent interview there was not “massive growth” left in the British pizza industry. He noted poultry was the fastest-growing menu item in the international market.

Governance Tensions

Reports indicate that there was tension between Rennie and the governance team over his strategy and direction, although Domino's announcement said he was leaving “by mutual agreement”.

Recent Product Introduction

In the autumn, the chain launched its chicken-focused offering – which Rennie described as a “major strategic shift” for the company – and is trialling it in 210 outlets in the north-west of England and the province.

While the firm is still intending to launch it across its almost 1,400 stores in the coming year as planned, it regards fried chicken as an addition to its main pizza offerings.

Board Statement

The Domino's chair, the company chair, said: “We are confident that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are focused on selecting the ideal CEO to lead the systematic rollout of that expansion plan.”

Industry Challenges

Recently, Domino's, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the Q3. In August, it alerted that the food delivery sector had “intensified” as it attributed reduced spending in the lead-up to the budget and rising wage costs for weaker-than-expected sales and a 15% drop in six-month income.

Competitors are also facing challenges. Another major chain disclosed the closing of dozens of outlets a recently, after the business behind its UK venues entered insolvency.

Health Initiatives

Adapting to market shifts towards better nutrition, the company has launched reduced-calorie items, such as its Thin & Crispy selection of bakes below 400 kcal as well as meat-free and gluten-free pizzas. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171, while a small has 909 calories.

Acting Management

The interim chief 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 occupy the top job permanently.

Frampton stated: “Our team has a several active expansion and efficiency programs that we will be focused on executing at speed.”

She added these involved further work on the company's logistics network and product development, and its customer retention initiative.

Domino's is also in need of a long-term chief financial officer until March 16, when Andrea joins from the Irish cider and beer maker C&C Group. For now, Richard Snow acts as acting financial officer.