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A chief executive of Domino's Pizza Group who suggested the UK might have reached maximum pizza demand while expanding the chain into chicken products has been ousted after conflicts with its directors.

Leadership Transition

The former CEO is departing after just two years in leadership, and will be replaced on an temporary basis by the organization's chief operating officer, Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who was with Domino's for more than two decades, had sought to redirect the UK's leading pizza delivery company towards fried chicken, stating earlier this month there was not “massive growth” left in the British pizza industry. He observed chicken was the fastest-growing menu item in the international market.

Board Tensions

Reports indicate that there was tension between the CEO and the board over his focus and management style, although Domino's official statement said he was leaving “as a joint decision”.

New Brand Launch

In the autumn, the chain launched its chicken-focused product line – which Rennie called a “major strategic shift” for the organization – and is trialling it in over 200 locations in the north-west of England and the province.

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

Board Comment

Ian Bull, the Domino's chair, stated: “Directors think that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are focused on selecting the ideal CEO to lead the careful implementation of that growth strategy.”

Industry Difficulties

Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions dipped by 1.5% in the latest quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the period before the budget and higher payroll outlays for disappointing revenue and a 15% drop in half-year profits.

Competitors are also facing challenges. Pizza Hut announced the shutting of dozens of outlets a last month, after the business behind its British operations faced financial collapse.

Health Efforts

Trying to keep up with consumer trends towards balanced diets, the company has launched reduced-calorie products, such as its Thin & Crispy selection of bakes below 400 calories as well as plant-based and gluten-free pizzas. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has over 2,100, while a small has 909 kcal.

Acting Management

The interim chief has been with the company since the recent past, and previously worked for the gaming group a well-known operator. It is believed that she does not want to occupy the chief executive role long-term.

Frampton stated: “Our team has a several current development and performance initiatives that we will be focused on implementing at pace.”

Frampton noted these involved additional efforts on the organization's supply chain and new item creation, and its customer retention initiative.

The pizza chain is also without a long-term chief financial officer until 16 March, when Andy Andrea starts from the drinks company C&C Group. In the meantime, Richard Snow is temporary CFO.