Has Pizza Peaked? Domino's Chief Executive Departs After Pivot Into Chicken.
The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached peak pizza while broadening the chain into chicken products has been ousted after disagreements with its board.
Executive Shake-Up
The former CEO is departing after just two years in charge, and will be succeeded on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a permanent CEO.
The outgoing executive, who served at the company for a substantial period, had sought to shift the UK's leading pizza delivery company towards poultry-based products, stating earlier this month there was not “huge potential” left in the UK's pizza market. He observed 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 strategy and management style, although Domino's official statement said he was stepping down “through mutual consent”.
Recent Brand Introduction
In September, the chain introduced its poultry product line – which the former chief referred to as a “bold new chapter” for the group – and is trialling it in select stores in the north-west of England and Northern Ireland.
While the firm is still going to roll it out across its extensive network next year as planned, it regards chicken products as an addition to its main pizza offerings.
Leadership Comment
The Domino's chair, the company chairman, said: “The board believes that there are a number of opportunities to drive further growth and performance improvement in our primary operations. We are concentrating on selecting the ideal CEO to lead the careful implementation of that expansion plan.”
Market Difficulties
Recently, the pizza delivery giant, which has millions of users in the British Isles, said orders fell by 1.5% in the Q3. In the summer, it alerted that the food delivery sector had “become tougher” as it attributed weaker consumer confidence in the run-up to the government announcement and increasing labor expenses for disappointing revenue and a significant fall in interim earnings.
Competitors are also experiencing difficulties. Another major chain revealed the closing of 68 restaurants a month ago, after the company behind its UK venues fell into administration.
Health Efforts
Responding to market shifts towards balanced diets, the company has introduced lower-calorie options, such as its thin-crust selection of pizzas below 400 calories as well as plant-based and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.
Acting Leadership
Nicola Frampton has been with the company since the recent past, and had a background at the betting firm a well-known operator. It is thought that she prefers not to take on the chief executive role permanently.
Frampton stated: “We have a multiple ongoing expansion and efficiency programs that we will be dedicated to implementing at speed.”
She added these involved additional efforts on the organization's supply chain and product development, and its loyalty scheme.
Domino's is also without a long-term CFO until March 16, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. Until then, Snow serves as acting financial officer.