Peak Pizza? Domino's Pizza Chief Executive Exits Following Pivot Towards Chicken.

The head of Domino's Pizza Group who indicated the UK might have hit peak pizza while diversifying the franchise into chicken products has been replaced after conflicts with its board.

Executive Change

The former CEO is departing after only 24 months in the top role, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's looks for a new leader.

The outgoing executive, who was with Domino's for a substantial period, had sought to pivot the UK's largest pizza delivery company towards poultry-based products, commenting in a recent interview there was not “huge potential” left in the UK's pizza market. He noted chicken was the fastest-growing protein in the globe.

Governance Disagreements

It is understood that there was disagreement between the CEO and the board over his strategy and management style, although the company's announcement said he was leaving “through mutual consent”.

New Product Introduction

In September, the chain unveiled its poultry offering – which Rennie described as a “significant new phase” for the company – and is trialling it in 210 outlets in the north-west of England and the province.

While the company is still going to roll it out across its nearly 1,400 branches next year as intended, it regards chicken products as an addition to its primary pizza operations.

Board Statement

Ian Bull, the company chairman, commented: “The board believes that there are a series of prospects to enhance value and profitability in Domino's core business. We are prioritizing finding the right chief executive to direct the disciplined execution of that expansion plan.”

Industry Difficulties

Recently, Domino's, which has millions of users in the British Isles, said orders fell by 1.5% in the third quarter. In August, it warned that the food delivery sector had “become tougher” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in half-year profits.

Rival chains are also experiencing difficulties. Pizza Hut disclosed the closing of multiple locations a month ago, after the company behind its UK venues entered insolvency.

Health Efforts

Responding to market shifts towards healthier eating, Domino's has rolled out lower-calorie options, such as its Thin & Crispy range of pizzas below 400 calories as well as plant-based and wheat-free options. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.

Interim Leadership

Nicola Frampton has been with the company since 2021, and previously worked for the gambling company William Hill. It is believed that she prefers not to take on the top job permanently.

She commented: “Our team has a number of ongoing development and performance initiatives that we will be focused on executing at a rapid rate.”

She said these included ongoing development on the company's procurement system and menu innovation, and its rewards program.

The pizza chain is also in need of a long-term finance director until 16 March, when Andy Andrea starts from the beverage producer C&C Group. For now, Snow serves as interim finance chief.

Kaitlin Walls
Kaitlin Walls

A financial strategist and lifestyle enthusiast sharing insights on wealth building and luxury experiences.