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A head of Domino's Pizza Group who proposed the UK might have reached maximum pizza demand while expanding the franchise into fried chicken has been replaced after tensions with its board.

Leadership Shake-Up

The former CEO is leaving after just two years in the top role, and will be succeeded on an acting basis by the organization's operations head, Frampton, while Domino's seeks a new leader.

The outgoing executive, who served at the company for a substantial period, had aimed to pivot Britain's leading pizza food delivery firm towards fried chicken, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He observed chicken was the most rapidly expanding protein in the globe.

Governance Friction

Sources suggest that there was tension between the CEO and the board over his approach and management style, although Domino's announcement said he was stepping down “by mutual agreement”.

New Brand Introduction

In the autumn, Domino's launched its Chick 'N' Dip offering – which the former chief 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 intending to launch it across its almost 1,400 stores in the coming year as scheduled, it regards chicken products as complementary to its main pizza offerings.

Board Statement

Bull, the company chair, stated: “The board believes that there are a number of opportunities to drive further growth and value creation in the main pizza segment. We are prioritizing finding the right chief executive to oversee the careful implementation of that expansion plan.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders dipped by 1.5% in the Q3. In the summer, it warned that the quick-service industry had “intensified” as it attributed reduced spending in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in six-month income.

Competitors are also facing challenges. Pizza Hut revealed the closing of 68 restaurants a last month, after the firm behind its UK venues entered insolvency.

Wellness Initiatives

Trying to keep up with consumer trends towards healthier eating, the company has rolled out lower-calorie items, such as its Thin & Crispy selection of pizzas below 400 kcal as well as vegan and gluten-free options. A big pepperoni bake has 2,311 calories. A big margherita has 2,171, while a personal has 909 kcal.

Interim Management

The interim chief has been with the company since the recent past, and had a background at the gaming group a well-known operator. It is believed that she does not want to take on the chief executive role on a full-time basis.

Frampton stated: “Our team has a number of ongoing growth and performance initiatives that we will be concentrating on implementing at a rapid rate.”

She added these involved ongoing development on the company's supply chain and product development, and its loyalty scheme.

The pizza chain is also in need of a full-time chief financial officer until March 16, when a new appointee joins from the Irish cider and beer maker a well-known firm. Until then, Richard Snow acts as interim finance chief.