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The boss of Domino's Pizza Group who proposed the UK might have hit pizza saturation while diversifying the company into fried chicken has been replaced after tensions with its governing body.

Leadership Shake-Up

Andrew Rennie is exiting after only 24 months in charge, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant seeks a long-term chief.

Rennie, who worked for Domino's for over 20 years, had aimed to redirect the UK's biggest pizza food delivery firm towards fried chicken, stating recently there was not “huge potential” left in the British pizza industry. He noted poultry was the most rapidly expanding food category in the world.

Board Friction

Sources suggest that there was friction between Rennie and the directors over his strategy and direction, although Domino's release said he was departing “by mutual agreement”.

Recent Product Launch

In the autumn, the chain unveiled its poultry brand – which Rennie described as a “bold new chapter” for the company – and is testing it in select stores in the North West region and Northern Ireland.

While the firm is still going to roll it out across its extensive network next year as scheduled, it views fried chicken as an addition to its core pizza business.

Leadership Comment

Bull, the company chairman, commented: “We are confident that there are a series of prospects to enhance value and value creation in the main pizza segment. We are focused on finding the ideal CEO to lead the systematic rollout of that development approach.”

Industry Difficulties

Recently, Domino's, which has 13 million customers in the British Isles, said transactions dipped by one and a half percent in the Q3. In the summer, it cautioned that the takeaway market had “become tougher” as it blamed economic uncertainty in the period before the government announcement and rising wage costs for disappointing revenue and a 15 percent decline in interim earnings.

Competitors are also facing challenges. Another major chain revealed the closing 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 better nutrition, the company has launched reduced-calorie items, such as its light base selection of bakes below 400 kcals as well as meat-free and allergy-friendly options. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.

Acting Leadership

The interim chief has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is understood that she is not seeking to occupy the top job permanently.

Frampton stated: “We have a several active development and operational projects that we will be focused on implementing at pace.”

She said these included additional efforts on the organization's logistics network and menu innovation, and its loyalty scheme.

Domino's is also without a full-time CFO until 16 March, when a new appointee joins from the drinks company a well-known firm. Until then, Snow acts as acting financial officer.