Has Pizza Peaked? Domino's Leader Exits Following Shift Towards Fried Chicken.

A boss of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while diversifying the chain into fried chicken has been removed after tensions with its governing body.

Executive Shake-Up

The former CEO is exiting after just two years in the top role, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a long-term chief.

The outgoing executive, who was with Domino's for a substantial period, had attempted to pivot Britain's leading pizza takeaway chain towards poultry-based products, stating earlier this month there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the quickest rising protein in the globe.

Governance Disagreements

It is understood that there was friction between the CEO and the directors over his approach and direction, although the company's official statement said he was leaving “by mutual agreement”.

Recent Brand Introduction

In the autumn, Domino's introduced its chicken-focused offering – which the former chief described as a “significant new phase” for the organization – and is testing it in select stores in the north-west of England and the province.

While the firm is still planning to expand it across its extensive network in the coming year as scheduled, it considers chicken products as complementary to its main pizza offerings.

Board Comment

The Domino's chair, the company chairman, commented: “We are confident that there are a number of opportunities to drive further growth and value creation in our primary operations. We are prioritizing identifying the ideal CEO to oversee the disciplined execution of that growth strategy.”

Industry Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders dipped by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “become tougher” as it blamed reduced spending in the run-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15% drop in interim earnings.

Competitors are also struggling. Another major chain disclosed the shutting of multiple locations a recently, after the company behind its UK venues faced financial collapse.

Wellness Initiatives

Adapting to market shifts towards better nutrition, Domino's has introduced light options, such as its thin-crust range of pizzas below 400 kcals as well as vegan and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has under 1,000 calories.

Interim Leadership

Frampton has been with Domino's since the recent past, and was formerly with the gambling company William Hill. It is understood that she does not want to assume the top job permanently.

Frampton stated: “Our team has a number of active expansion and performance initiatives that we will be dedicated to implementing at pace.”

She added these included further work on the organization's procurement system and product development, and its rewards program.

The pizza chain is also without a long-term chief financial officer until the spring, when a new appointee joins from the Irish cider and beer maker C&C Group. For now, Richard Snow acts as acting financial officer.