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The chief executive of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while diversifying the company into chicken products has been ousted after conflicts with its board.

Executive Transition

Rennie is leaving after a brief tenure in charge, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while the pizza giant seeks a new leader.

The outgoing executive, who worked for the company for more than two decades, had aimed to redirect the UK's biggest pizza food delivery firm towards poultry-based products, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding menu item in the globe.

Governance Tensions

Reports indicate that there was tension between the CEO and the directors over his strategy and business vision, although Domino's release said he was stepping down “by mutual agreement”.

Recent Brand Launch

In September, the chain unveiled its poultry brand – which Rennie called a “major strategic shift” for the organization – and is piloting it in over 200 locations in the north-west of England and the province.

While the company is still intending to launch it across its extensive network next year as intended, it views fried chicken as a supplement for its core pizza business.

Board Statement

Ian Bull, the Domino's chair, said: “We are confident that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are concentrating on selecting the suitable leader to direct the disciplined execution of that development approach.”

Market Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said transactions declined by 1.5 percent in the Q3. In August, it alerted that the quick-service industry had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15% drop in six-month income.

Rival chains are also struggling. Pizza Hut revealed the closure of 68 restaurants a recently, after the firm behind its British operations entered insolvency.

Wellness Efforts

Responding to market shifts towards healthier eating, Domino's has launched lower-calorie products, such as its thin-crust line of bakes below 400 calories as well as meat-free and wheat-free pizzas. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 calories.

Interim Management

Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is understood that she does not want to take on the CEO position on a full-time basis.

Frampton stated: “Our team has a multiple current growth and performance initiatives that we will be dedicated to implementing at pace.”

She added these involved further work on the company's supply chain and product development, and its rewards program.

The pizza chain is also without a permanent chief financial officer until 16 March, when a new appointee comes aboard from the beverage producer a well-known firm. For now, Richard Snow acts as interim finance chief.