Has Pizza Peaked? Domino's Chief Executive Departs After Move Into Fried Chicken.
The boss of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while broadening the franchise into chicken products has been ousted after tensions with its board.
Executive Change
The former CEO is departing after only 24 months in charge, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.
The outgoing executive, who was with the company for a substantial period, had sought to shift the UK's biggest pizza delivery company towards chicken offerings, remarking in a recent interview there was not “massive growth” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding food category in the international market.
Governance Disagreements
Sources suggest that there was friction between the CEO and the governance team over his approach and direction, although Domino's official statement said he was departing “by mutual agreement”.
Recent Brand Launch
In September, Domino's unveiled its chicken-focused offering – which the former chief referred to as a “major strategic shift” for the organization – and is trialling it in 210 outlets in the North West region and the province.
While the business is still intending to launch it across its nearly 1,400 branches next year as scheduled, it considers fried chicken as a supplement for its main pizza offerings.
Leadership Comment
The Domino's chair, the Domino's chair, said: “The board believes that there are a range of possibilities to enhance value and value creation in our primary operations. We are focused on selecting the right chief executive to oversee the systematic rollout of that development approach.”
Industry Difficulties
Recently, the pizza delivery giant, which has 13 million customers in the British Isles, said orders fell by 1.5% in the latest quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it attributed economic uncertainty in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15 percent decline in half-year profits.
Other pizza operators are also struggling. Another major chain announced the shutting of 68 restaurants a month ago, after the firm behind its outlets faced financial collapse.
Health Initiatives
Responding to market shifts towards better nutrition, the company has rolled out lower-calorie products, such as its Thin & Crispy range of pizzas below 400 calories as well as vegan and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.
Interim Leadership
The interim chief has been with the company since 2021, and was formerly with the gambling company a well-known operator. It is understood that she prefers not to occupy the top job permanently.
She commented: “We have a multiple ongoing growth and efficiency programs that we will be focused on executing at pace.”
Frampton noted these involved ongoing development on the company's supply chain and menu innovation, and its customer retention initiative.
Domino's is also without a full-time chief financial officer until the spring, when Andrea starts from the Irish cider and beer maker C&C Group. Until then, Snow serves as interim finance chief.