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The chief executive of Domino's Pizza Group who indicated the UK might have hit peak pizza while diversifying the chain into chicken products has been ousted after tensions with its board.

Executive Change

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

The outgoing executive, who served at Domino's for over 20 years, had attempted to shift Britain's biggest pizza food delivery firm towards chicken offerings, stating in a recent interview there was not “huge potential” left in the pizza sector in the UK. He said poultry was the most rapidly expanding menu item in the international market.

Governance Friction

It is understood that there was tension between Rennie and the directors over his strategy and management style, although Domino's release said he was departing “by mutual agreement”.

New Product Introduction

In September, Domino's introduced its Chick 'N' Dip product line – which the former chief referred to as a “bold new chapter” for the company – and is trialling it in select stores in the north-west of England and the province.

While the business is still planning to expand it across its nearly 1,400 branches in the coming year as intended, it views chicken products as complementary to its main pizza offerings.

Board Statement

Bull, the company chairman, commented: “We are confident that there are a number of opportunities to enhance value and value creation in our primary operations. We are focused on selecting the ideal CEO to direct the disciplined execution of that development approach.”

Industry Challenges

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said transactions declined by 1.5% in the latest quarter. In the summer, it cautioned that the quick-service industry had “become tougher” as it attributed economic uncertainty in the period before the government announcement and higher payroll outlays for disappointing revenue and a significant fall in interim earnings.

Other pizza operators are also struggling. Pizza Hut revealed the closing of 68 restaurants a month ago, after the company behind its British operations fell into administration.

Wellness Efforts

Adapting to customer preferences towards balanced diets, the company has rolled out light options, such as its light base range of bakes below 400 calories as well as plant-based and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A big margherita has over 2,100, while a personal has 909 calories.

Acting Leadership

The interim chief has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she is not seeking to assume the top job long-term.

She commented: “Our team has a multiple current growth and performance initiatives that we will be concentrating on executing at pace.”

Frampton noted these comprised ongoing development on the company's procurement system and new item creation, and its loyalty scheme.

Domino's is also in need of a full-time chief financial officer until March 16, when Andrea starts from the beverage producer a well-known firm. In the meantime, Richard Snow serves as temporary CFO.