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The head of Domino's Pizza Group who indicated the UK might have hit peak pizza while broadening the chain into poultry items has been replaced after conflicts with its board.

Leadership Transition

The former CEO is leaving after just two years in charge, and will be succeeded on an interim basis by the company's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who was with the company for more than two decades, had sought to pivot the UK's leading pizza delivery company towards fried chicken, stating recently there was not “significant expansion” left in the British pizza industry. He observed poultry was the quickest rising menu item in the world.

Board Friction

It is understood that there was disagreement between the CEO and the directors over his strategy and management style, although the company's official statement said he was leaving “by mutual agreement”.

Recent Brand Introduction

In the autumn, Domino's introduced its Chick 'N' Dip product line – which Rennie referred to as a “bold new chapter” for the organization – and is piloting it in select stores in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its nearly 1,400 branches in the coming year as scheduled, it regards fried chicken as complementary to its main pizza offerings.

Board Statement

The Domino's chair, the company chairman, commented: “Directors think that there are a number of opportunities to enhance value and profitability in our primary operations. We are prioritizing identifying the right chief executive to direct the disciplined execution of that growth strategy.”

Industry Difficulties

Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said sales dipped by 1.5 percent in the third quarter. In August, it alerted that the takeaway market had “intensified” as it blamed reduced spending in the run-up to the budget and rising wage costs for disappointing revenue and a 15 percent decline in half-year profits.

Competitors are also experiencing difficulties. Pizza Hut revealed the shutting of dozens of outlets a recently, after the company behind its British operations fell into administration.

Health Efforts

Responding to market shifts towards balanced diets, the company has introduced reduced-calorie options, such as its light base selection of pizzas below 400 kcal as well as vegan and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a personal has under 1,000 calories.

Interim Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company William Hill. It is thought that she is not seeking to take on the top job permanently.

She said: “We have a several active expansion and performance initiatives that we will be dedicated to executing at pace.”

Frampton noted these comprised additional efforts on the organization's supply chain and product development, and its customer retention initiative.

Domino's is also in need of a long-term CFO until March 16, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. In the meantime, Snow acts as acting financial officer.