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The head of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while expanding the franchise into fried chicken has been replaced after conflicts with its board.

Leadership Transition

Andrew Rennie is departing after a brief tenure in charge, and will be succeeded on an acting basis by the company's operations head, Frampton, while Domino's looks for a new leader.

The outgoing executive, who was with the company for over 20 years, had attempted to shift Britain's biggest pizza delivery company towards fried chicken, remarking recently there was not “huge potential” left in the British pizza industry. He noted poultry was the fastest-growing menu item in the world.

Governance Friction

Reports indicate that there was disagreement between Rennie and the board over his focus and business vision, although the company's official statement said he was leaving “as a joint decision”.

Recent Brand Introduction

In September, the chain unveiled its Chick 'N' Dip brand – which Rennie called a “bold new chapter” for the organization – and is testing it in over 200 locations in the North West region and the province.

While the company is still going to roll it out across its nearly 1,400 branches next year as scheduled, it considers chicken products as a supplement for its primary pizza operations.

Leadership Statement

The Domino's chair, the Domino's chairman, stated: “Directors think that there are a number of opportunities to drive further growth and profitability in our primary operations. We are prioritizing identifying the ideal CEO to lead the systematic rollout of that growth strategy.”

Market Challenges

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had “become tougher” as it blamed reduced spending in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in interim earnings.

Competitors are also facing challenges. Pizza Hut announced the shutting of 68 restaurants a month ago, after the company behind its British operations fell into administration.

Health Initiatives

Trying to keep up with customer preferences towards balanced diets, the company has launched reduced-calorie options, such as its thin-crust line of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a personal has 909 kcal.

Acting Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gaming group a well-known operator. It is thought that she is not seeking to occupy the chief executive role long-term.

She commented: “Our team has a number of active expansion and operational projects that we will be focused on implementing at a rapid rate.”

She said these involved additional efforts on the organization's supply chain and product development, and its customer retention initiative.

The pizza chain is also in need of a full-time finance director until the spring, when a new appointee joins from the beverage producer C&C Group. Until then, Snow serves as acting financial officer.