Peak Pizza? Domino's Pizza Chief Executive Departs After Move Towards Fried Chicken.
A boss of Domino's Pizza Group who proposed the United Kingdom might have reached peak pizza while expanding the franchise into chicken products has been ousted after disagreements with its governing body.
Leadership Change
The former CEO is departing after a brief tenure in the top role, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's searches for a long-term chief.
The outgoing executive, who worked for Domino's for a substantial period, had sought to shift the UK's leading pizza food delivery firm towards poultry-based products, remarking recently there was not “huge potential” left in the British pizza industry. He observed chicken was the quickest rising protein in the globe.
Board Tensions
Reports indicate that there was tension between the CEO and the directors over his strategy and management style, although Domino's announcement said he was leaving “as a joint decision”.
New Brand Introduction
In the autumn, Domino's unveiled its chicken-focused offering – which the former chief called a “major strategic shift” for the organization – and is trialling it in over 200 locations in the North West region and Northern Ireland.
While the firm is still planning to expand it across its extensive network next year as planned, it considers chicken products as complementary to its primary pizza operations.
Board Statement
Ian Bull, the Domino's chair, commented: “Directors think that there are a series of prospects to drive further growth and value creation in Domino's core business. We are focused on finding the suitable leader to lead the systematic rollout of that expansion plan.”
Industry Difficulties
Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions dipped by 1.5 percent in the third quarter. In the summer, it cautioned that the quick-service industry had “become tougher” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for below-target performance and a 15% drop in half-year profits.
Rival chains are also struggling. Another major chain announced the shutting of dozens of outlets a last month, after the company behind its outlets faced financial collapse.
Health Efforts
Adapting to customer preferences towards balanced diets, the company has rolled out light products, such as its Thin & Crispy range of pizzas below 400 kcals as well as vegan and wheat-free options. A big pepperoni bake has 2,311 kcals. A family cheese pizza has over 2,100, while a personal has 909 calories.
Acting Management
Frampton has been with the company since the recent past, and was formerly with the gaming group William Hill. It is understood that she is not seeking to occupy the CEO position permanently.
She commented: “We have a several active development and performance initiatives that we will be focused on implementing at a rapid rate.”
She added these comprised additional efforts on the company's logistics network and product development, and its customer retention initiative.
The pizza chain is also in need of a long-term CFO until the spring, when Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow is interim finance chief.