Peak Pizza? Domino's Pizza Leader Steps Down After Pivot Towards Chicken.
The head of Domino's Pizza Group who proposed the UK might have reached peak pizza while diversifying the chain into poultry items has been ousted after disagreements with its board.
Executive Transition
The former CEO is departing after a brief tenure in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Nicola Frampton, while Domino's searches for a permanent CEO.
The outgoing executive, who was with Domino's for more than two decades, had attempted to shift the UK's leading pizza food delivery firm towards chicken offerings, remarking earlier this month there was not “huge potential” left in the pizza sector in the UK. He observed poultry was the most rapidly expanding protein in the world.
Board Disagreements
It is understood that there was friction between the CEO and the directors over his focus and direction, although the company's release said he was leaving “as a joint decision”.
Recent Product Introduction
In September, Domino's launched its poultry product line – which the former chief described as a “major strategic shift” for the company – and is trialling it in select stores in the North West region and Northern Ireland.
While the firm is still intending to launch it across its extensive network next year as planned, it considers chicken products as an addition to its core pizza business.
Board Comment
Bull, the company chair, stated: “The board believes that there are a range of possibilities to enhance value and profitability in the main pizza segment. We are concentrating on finding the ideal CEO to direct the systematic rollout of that expansion plan.”
Industry Challenges
Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said transactions dipped by one and a half percent in the Q3. In the summer, it warned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in six-month income.
Other pizza operators are also struggling. Another major chain disclosed the closure of dozens of outlets a last month, after the company behind its British operations entered insolvency.
Health Efforts
Responding to customer preferences towards balanced diets, the company has launched lower-calorie products, such as its Thin & Crispy selection of pizzas below 400 calories as well as vegan and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A family cheese pizza has 2,171, while a personal has 909 calories.
Acting Management
Nicola Frampton has been with the company since 2021, and previously worked for the betting firm William Hill. It is thought that she does not want to take on the chief executive role long-term.
She said: “Our team has a number of active growth and performance initiatives that we will be concentrating on implementing at pace.”
She added these involved further work on the organization's supply chain and product development, and its rewards program.
Domino's is also in need of a permanent finance director until the spring, when Andy Andrea starts from the beverage producer C&C Group. Until then, Richard Snow is interim finance chief.
