Peak Pizza? Domino's Pizza CEO Exits After Move Towards Fried Chicken.
The boss of the UK's Domino's Pizza chain who suggested the UK might have hit peak pizza while broadening the company into chicken products has been replaced after disagreements with its board.
Leadership Shake-Up
The former CEO is leaving after just two years in leadership, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while Domino's seeks a long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had sought to shift the UK's biggest pizza delivery company towards poultry-based products, stating in a recent interview there was not “massive growth” left in the British pizza industry. He said poultry was the most rapidly expanding food category in the world.
Board Disagreements
Sources suggest that there was tension between the CEO and the governance team over his strategy and management style, although Domino's official statement said he was departing “through mutual consent”.
New Product Introduction
In September, the chain introduced its chicken-focused offering – which Rennie referred to as a “significant new phase” for the group – and is piloting it in select stores in the North West region and the province.
While the business is still going to roll it out across its nearly 1,400 branches next year as planned, it regards fried chicken as an addition to its primary pizza operations.
Leadership Statement
Bull, the Domino's chair, said: “The board believes that there are a range of possibilities to drive further growth and performance improvement in Domino's core business. We are concentrating on finding the suitable leader to lead the disciplined execution of that expansion plan.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said orders declined by 1.5% in the Q3. In August, it alerted that the food delivery sector had “intensified” as it blamed weaker consumer confidence in the period before the budget and higher payroll outlays for below-target performance and a 15 percent decline in half-year profits.
Rival chains are also experiencing difficulties. Pizza Hut revealed the closure of dozens of outlets a month ago, after the firm behind its outlets entered insolvency.
Wellness Efforts
Trying to keep up with customer preferences towards healthier eating, the company has launched lower-calorie items, such as its Thin & Crispy line of pizzas below 400 kcals as well as meat-free and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 calories.
Interim Leadership
The interim chief has been with Domino's since 2021, and previously worked for the gaming group a well-known operator. It is believed that she does not want to occupy the CEO position permanently.
Frampton stated: “Our team has a several active expansion and performance initiatives that we will be concentrating on executing at pace.”
Frampton noted these involved further work on the organization's procurement system and new item creation, and its loyalty scheme.
The pizza chain is also without a full-time chief financial officer until 16 March, when Andrea comes aboard from the drinks company C&C Group. In the meantime, Richard Snow is interim finance chief.