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The chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit maximum pizza demand while expanding the chain into poultry items has been ousted after tensions with its directors.

Executive Change

Andrew Rennie is departing after a brief tenure in the top role, and will be succeeded on an interim basis by the organization's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

Rennie, who was with Domino's for more than two decades, had sought to shift Britain's biggest pizza delivery company towards fried chicken, remarking in a recent interview there was not “massive growth” left in the UK's pizza market. He noted poultry was the fastest-growing food category in the globe.

Governance Disagreements

Sources suggest that there was disagreement between the CEO and the governance team over his approach and management style, although the company's announcement said he was stepping down “through mutual consent”.

Recent Brand Launch

In September, Domino's launched its poultry brand – which the former chief described as a “major strategic shift” for the organization – and is trialling it in 210 outlets in the North West region and Northern Ireland.

While the firm is still intending to launch it across its nearly 1,400 branches next year as planned, it regards fried chicken as a supplement for its primary pizza operations.

Board Comment

Bull, the Domino's chairman, stated: “Directors think that there are a series of prospects to boost expansion and value creation in the main pizza segment. We are prioritizing selecting the suitable leader to direct the systematic rollout of that growth strategy.”

Market Challenges

In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said orders declined by 1.5% in the third quarter. In the summer, it warned that the takeaway market had “become tougher” as it attributed reduced spending in the period before the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in six-month income.

Other pizza operators are also struggling. Another major chain disclosed the closure of 68 restaurants a month ago, after the business behind its outlets fell into administration.

Health Efforts

Trying to keep up with market shifts towards better nutrition, Domino's has rolled out reduced-calorie products, such as its Thin & Crispy selection of bakes below 400 kcal as well as plant-based and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a small has 909 kcal.

Interim Leadership

The interim chief has been with the company since the recent past, and had a background at the betting firm William Hill. It is believed that she prefers not to assume the CEO position permanently.

She said: “The company has a number of ongoing growth and performance initiatives that we will be dedicated to executing at speed.”

Frampton noted these comprised further work on the organization's logistics network and menu innovation, and its rewards program.

The pizza chain is also without a permanent CFO until March 16, when Andy Andrea joins from the beverage producer a well-known firm. Until then, Richard Snow is acting financial officer.