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

Executive Transition

Andrew Rennie is leaving after a brief tenure in charge, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who was with the company for more than two decades, had aimed to redirect Britain's largest pizza food delivery firm towards chicken offerings, remarking earlier this month there was not “huge potential” left in the British pizza industry. He observed poultry was the quickest rising food category in the international market.

Board Disagreements

It is understood that there was friction between Rennie and the governance team over his approach and management style, although the company's announcement said he was leaving “as a joint decision”.

Recent Brand Launch

In the autumn, Domino's unveiled its chicken-focused brand – which Rennie referred to as a “significant new phase” for the group – and is piloting it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its extensive network next year as intended, it considers chicken products as a supplement for its main pizza offerings.

Board Statement

The Domino's chair, the company chair, commented: “We are confident that there are a range of possibilities to enhance value and profitability in the main pizza segment. We are concentrating on finding the right chief executive to oversee the careful implementation of that development approach.”

Market Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions fell by 1.5 percent in the Q3. In August, it alerted that the quick-service industry had “become tougher” as it attributed economic uncertainty in the period before the budget and increasing labor expenses for below-target performance and a significant fall in half-year profits.

Other pizza operators are also facing challenges. Another major chain disclosed the closing of 68 restaurants a recently, after the company behind its UK venues entered insolvency.

Health Efforts

Trying to keep up with consumer trends towards balanced diets, the company has introduced lower-calorie items, such as its thin-crust range of bakes below 400 kcals as well as plant-based and gluten-free options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a personal has 909 calories.

Interim Management

The interim chief has been with Domino's since the recent past, and had a background at the betting firm a well-known operator. It is thought that she prefers not to take on the top job permanently.

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

Frampton noted these comprised additional efforts on the organization's logistics network and product development, and its rewards program.

Domino's is also in need of a permanent chief financial officer until the spring, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. Until then, Snow is interim finance chief.