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The boss of the UK's Domino's Pizza chain who proposed the UK might have reached maximum pizza demand while diversifying the chain into chicken products has been ousted after tensions with its board.

Executive Change

The former CEO is exiting after just two years in the top role, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

The outgoing executive, who was with Domino's for a substantial period, had aimed to pivot the UK's biggest pizza delivery company towards fried chicken, commenting recently there was not “massive growth” left in the UK's pizza market. He observed poultry was the most rapidly expanding food category in the globe.

Board Friction

It is understood that there was disagreement between the CEO and the governance team over his focus and business vision, although the company's announcement said he was stepping down “by mutual agreement”.

Recent Brand Launch

In September, the chain introduced its poultry brand – which Rennie referred to as a “significant new phase” for the group – and is piloting it in 210 outlets in the North West region and Northern Ireland.

While the firm is still planning to expand it across its extensive network in the coming year as intended, it views fried chicken as a supplement for its core pizza business.

Board Comment

The Domino's chair, the Domino's chairman, commented: “The board believes that there are a number of opportunities to boost expansion and profitability in the main pizza segment. We are prioritizing selecting the ideal CEO to lead the systematic rollout of that development approach.”

Market Challenges

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said transactions fell by one and a half percent in the Q3. In the summer, it alerted that the food delivery sector had “become tougher” as it blamed reduced spending in the lead-up to the budget and rising wage costs for disappointing revenue and a 15% drop in interim earnings.

Rival chains are also struggling. Another major chain disclosed the closing of dozens of outlets a month ago, after the business behind its British operations fell into administration.

Wellness Efforts

Adapting to customer preferences towards healthier eating, the company has launched light options, such as its thin-crust line of bakes below 400 calories as well as plant-based and gluten-free options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a small has 909 calories.

Interim Management

Frampton has been with the company since the recent past, and was formerly with the gambling company a well-known operator. It is thought that she prefers not to assume the top job permanently.

She commented: “The company has a number of ongoing growth and efficiency programs that we will be focused on implementing at a rapid rate.”

She said these involved further work on the company's logistics network and menu innovation, and its loyalty scheme.

Domino's is also in need of a long-term finance director until the spring, when Andrea joins from the beverage producer a well-known firm. In the meantime, Snow acts as acting financial officer.