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A chief executive of Domino's Pizza Group who suggested the United Kingdom might have reached peak pizza while broadening the chain into poultry items has been replaced after conflicts with its directors.

Executive Transition

The former CEO is departing after just two years in leadership, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who worked for the company for over 20 years, had sought to pivot the UK's biggest pizza delivery company towards poultry-based products, remarking in a recent interview there was not “massive growth” left in the British pizza industry. He said poultry was the most rapidly expanding protein in the international market.

Governance Disagreements

It is understood that there was disagreement between the CEO and the board over his focus and management style, although Domino's release said he was stepping down “by mutual agreement”.

Recent Brand Introduction

In September, Domino's launched its chicken-focused product line – which Rennie called a “major strategic shift” for the company – and is piloting it in over 200 locations in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its nearly 1,400 branches in the coming year as scheduled, it views chicken products as an addition to its main pizza offerings.

Leadership Statement

The Domino's chair, the company chairman, stated: “The board believes that there are a series of prospects to drive further growth and performance improvement in our primary operations. We are concentrating on selecting the right chief executive to oversee the careful implementation of that growth strategy.”

Market Difficulties

In the latest update, Domino's, which has 13 million customers in the British Isles, said transactions declined by one and a half percent in the latest quarter. In the summer, it cautioned that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the lead-up to the government announcement and higher payroll outlays for disappointing revenue and a 15% drop in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of multiple locations a recently, after the company behind its UK venues fell into administration.

Health Initiatives

Responding to customer preferences towards balanced diets, the company has rolled out reduced-calorie options, such as its Thin & Crispy selection of bakes below 400 kcal as well as meat-free and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171 kcal, while a individual has 909 calories.

Acting Management

Frampton has been with the company since the recent past, and previously worked for the gambling company a well-known operator. It is believed that she is not seeking to occupy the CEO position on a full-time basis.

She commented: “The company has a number of current growth and performance initiatives that we will be concentrating on carrying out at a rapid rate.”

She added these involved additional efforts on the organization's supply chain and menu innovation, and its loyalty scheme.

Domino's is also lacking a full-time CFO until 16 March, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. For now, Richard Snow acts as temporary CFO.