🔗 Share this article

A chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit maximum pizza demand while diversifying the chain into poultry items has been replaced after disagreements with its directors.

Executive Transition

The former CEO is departing after just two years in the top role, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while Domino's looks for a long-term chief.

The outgoing executive, who was with Domino's for over 20 years, had sought to redirect the UK's largest pizza takeaway chain towards chicken offerings, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He observed poultry was the fastest-growing menu item in the international market.

Governance Disagreements

It is understood that there was disagreement between the CEO and the directors over his strategy and management style, although Domino's release said he was stepping down “through mutual consent”.

New Brand Introduction

In the autumn, the chain introduced its chicken-focused brand – which the former chief referred to as a “major strategic shift” for the group – and is testing it in 210 outlets in the north-west of England and the province.

While the firm is still intending to launch it across its almost 1,400 stores next year as intended, it regards fried chicken as complementary to its primary pizza operations.

Leadership Comment

The Domino's chair, the company chairman, stated: “The board believes that there are a series of prospects to boost expansion and value creation in Domino's core business. We are concentrating on selecting the suitable leader to lead the disciplined execution of that expansion plan.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales fell by one and a half percent in the third quarter. In August, it cautioned that the food delivery sector had “intensified” as it attributed economic uncertainty in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15 percent decline in half-year profits.

Competitors are also facing challenges. Another major chain disclosed the closing of dozens of outlets a last month, after the firm behind its UK venues faced financial collapse.

Health Initiatives

Trying to keep up with consumer trends towards better nutrition, the company has rolled out lower-calorie options, such as its thin-crust selection of pizzas below 400 kcals as well as meat-free and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A big margherita has over 2,100, while a individual has 909 kcal.

Interim Management

Nicola Frampton has been with the company since 2021, and had a background at the gaming group a well-known operator. It is thought that she prefers not to assume the CEO position permanently.

She said: “The company has a multiple current growth and performance initiatives that we will be dedicated to carrying out at a rapid rate.”

She said these involved additional efforts on the organization's supply chain and product development, and its customer retention initiative.

The pizza chain is also lacking a long-term chief financial officer until 16 March, when a new appointee comes aboard from the drinks company a well-known firm. In the meantime, Richard Snow is temporary CFO.