Peak Pizza? Domino's Pizza Chief Executive Exits After Move Towards Fried Chicken.

The boss of the UK's Domino's Pizza chain who proposed the UK might have hit pizza saturation while expanding the chain into poultry items has been removed after tensions with its governing body.

Executive Change

The former CEO is departing after just two years in leadership, and will be replaced on an interim basis by the company's operations head, Nicola Frampton, while Domino's seeks a long-term chief.

The outgoing executive, who served at the company for a substantial period, had attempted to pivot the UK's leading pizza takeaway chain towards chicken offerings, remarking earlier this month there was not “significant expansion” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding menu item in the world.

Board Disagreements

It is understood that there was tension between the CEO and the board over his approach and business vision, although the company's release said he was leaving “by mutual agreement”.

Recent Brand Introduction

In September, the chain unveiled its chicken-focused brand – which the former chief called a “major strategic shift” for the company – and is testing it in select stores in the North West region and the province.

While the company is still going to roll it out across its nearly 1,400 branches in the coming year as planned, it regards chicken products as a supplement for its main pizza offerings.

Board Comment

Ian Bull, the company chairman, commented: “The board believes that there are a number of opportunities to enhance value and profitability in the main pizza segment. We are prioritizing selecting the right chief executive to oversee the disciplined execution of that expansion plan.”

Industry Challenges

Earlier this month, Domino's, which has 13 million customers in the British Isles, said orders dipped by one and a half percent in the latest quarter. In the summer, it alerted that the quick-service industry had “intensified” as it attributed weaker consumer confidence in the period before the government announcement and rising wage costs for disappointing revenue and a 15% drop in interim earnings.

Competitors are also struggling. Pizza Hut announced the closing of 68 restaurants a last month, after the business behind its British operations fell into administration.

Wellness Efforts

Adapting to consumer trends towards healthier eating, the company has launched reduced-calorie options, such as its thin-crust range of bakes below 400 kcals as well as vegan and wheat-free pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171 kcal, while a personal has under 1,000 calories.

Acting Leadership

Frampton has been with the company since the recent past, and had a background at the gambling company William Hill. It is thought that she prefers not to assume the CEO position on a full-time basis.

She said: “We have a multiple active development and performance initiatives that we will be concentrating on carrying out at speed.”

She added these included further work on the organization's logistics network and new item creation, and its loyalty scheme.

Domino's is also without a long-term finance director until March 16, when a new appointee starts from the drinks company C&C Group. In the meantime, Snow serves as acting financial officer.

Desiree Willis
Desiree Willis

Elara is a seasoned casino strategist with over a decade of experience in gaming analysis and player education.