Peak Pizza? Domino's Leader Steps Down Following Pivot Into Fried Chicken.
The boss of Domino's Pizza Group who suggested the United Kingdom might have reached pizza saturation while broadening the company into poultry items has been replaced after tensions with its governing body.
Executive Change
The former CEO is departing after a brief tenure in charge, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a new leader.
The outgoing executive, who served at Domino's for a substantial period, had attempted to redirect Britain's largest pizza delivery company towards fried chicken, stating earlier this month there was not “significant expansion” left in the British pizza industry. He observed poultry was the quickest rising protein in the international market.
Governance Tensions
Sources suggest that there was disagreement between the CEO and the governance team over his approach and direction, although Domino's official statement said he was departing “through mutual consent”.
New Brand Introduction
In the autumn, the chain launched its poultry offering – which the former chief referred to as a “major strategic shift” for the company – and is trialling it in over 200 locations in the north-west of England and the province.
While the business is still planning to expand it across its extensive network in the coming year as scheduled, it views chicken products as complementary to its core pizza business.
Board Comment
Ian Bull, the Domino's chairman, stated: “We are confident that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are focused on finding the ideal CEO to lead the disciplined execution of that growth strategy.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions dipped by 1.5 percent in the third quarter. In the summer, it cautioned that the quick-service industry had “intensified” as it attributed weaker consumer confidence in the period before the budget and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.
Rival chains are also experiencing difficulties. Pizza Hut disclosed the shutting of dozens of outlets a last month, after the company behind its outlets fell into administration.
Wellness Initiatives
Adapting to customer preferences towards better nutrition, the company has rolled out lower-calorie items, such as its thin-crust range of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171, while a small has 909 kcal.
Interim Management
The interim chief has been with Domino's since the recent past, and previously worked for the gambling company a well-known operator. It is thought that she is not seeking to assume the top job on a full-time basis.
She said: “We have a number of current expansion and efficiency programs that we will be dedicated to executing at a rapid rate.”
Frampton noted these comprised ongoing development on the organization's logistics network and new item creation, and its customer retention initiative.
Domino's is also in need of a permanent CFO until March 16, when Andy Andrea starts from the drinks company C&C Group. For now, Snow acts as acting financial officer.