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

Leadership Transition

Rennie is exiting after only 24 months in leadership, and will be replaced on an interim basis by the company's operations head, Frampton, while the pizza giant searches for a long-term chief.

Rennie, who worked for Domino's for over 20 years, had sought to shift the UK's biggest pizza food delivery firm towards fried chicken, stating earlier this month there was not “massive growth” left in the British pizza industry. He said poultry was the quickest rising menu item in the international market.

Board Friction

Reports indicate that there was disagreement between Rennie and the governance team over his approach and management style, although Domino's announcement said he was stepping down “by mutual agreement”.

New Brand Launch

In the autumn, the chain launched its chicken-focused product line – which Rennie referred to as a “bold new chapter” for the organization – and is piloting it in over 200 locations in the north-west of England and the province.

While the firm is still planning to expand it across its extensive network next year as intended, it regards fried chicken as complementary to its primary pizza operations.

Board Statement

Ian Bull, the Domino's chairman, stated: “Directors think that there are a series of prospects to drive further growth and performance improvement in the main pizza segment. We are focused on selecting the suitable leader to direct the disciplined execution of that expansion plan.”

Industry Challenges

Earlier this month, Domino's, which has millions of users in the British Isles, said orders dipped by one and a half percent in the latest quarter. In August, it alerted that the takeaway market had “become tougher” as it attributed reduced spending in the lead-up to the budget and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.

Rival chains are also struggling. Pizza Hut revealed the closing of multiple locations a month ago, after the company behind its British operations fell into administration.

Health Initiatives

Trying to keep up with consumer trends towards better nutrition, Domino's has launched light options, such as its light base line of bakes below 400 calories as well as vegan and allergy-friendly options. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company William Hill. It is thought that she does not want to occupy the CEO position permanently.

She said: “We have a several active expansion and performance initiatives that we will be dedicated to implementing at speed.”

She added these included additional efforts on the company's procurement system and new item creation, and its customer retention initiative.

The pizza chain is also lacking a long-term CFO until 16 March, when Andy Andrea starts from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow serves as temporary CFO.