Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down Following Shift Into Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who proposed the UK might have hit peak pizza while expanding the franchise into poultry items has been removed after conflicts with its directors.
Leadership Shake-Up
The former CEO is departing after only 24 months in charge, and will be replaced on an temporary basis by the organization's operations head, Frampton, while Domino's searches for a long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had sought to redirect Britain's biggest pizza food delivery firm towards fried chicken, remarking earlier this month there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the quickest rising menu item in the globe.
Board Disagreements
It is understood that there was tension between the CEO and the governance team over his approach and business vision, although Domino's release said he was stepping down “as a joint decision”.
Recent Brand Introduction
In September, Domino's introduced its Chick 'N' Dip offering – which the former chief referred to as a “major strategic shift” for the group – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.
While the business is still going to roll it out across its almost 1,400 stores next year as intended, it views fried chicken as complementary to its main pizza offerings.
Leadership Comment
The Domino's chair, the Domino's chair, commented: “Directors think that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are focused on finding the ideal CEO to oversee the careful implementation of that development approach.”
Market Difficulties
Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said sales declined by 1.5% in the Q3. In the summer, it warned that the takeaway market had “intensified” as it blamed economic uncertainty in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a 15% drop in six-month income.
Other pizza operators are also struggling. Another major chain disclosed the closure of multiple locations a recently, after the business behind its British operations faced financial collapse.
Wellness Initiatives
Responding to consumer trends towards better nutrition, Domino's has rolled out light products, such as its light base line of bakes below 400 calories as well as vegan and wheat-free options. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171, while a personal has under 1,000 calories.
Interim Leadership
Nicola Frampton has been with the company since 2021, and had a background at the gaming group William Hill. It is understood that she does not want to assume the top job on a full-time basis.
Frampton stated: “The company has a several current growth and efficiency programs that we will be concentrating on executing at a rapid rate.”
Frampton noted these comprised additional efforts on the company's supply chain and menu innovation, and its rewards program.
Domino's is also without a long-term finance director until the spring, when a new appointee starts from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.