In a shocking move for food followers and fans, pizza king Domino's said Tuesday that its hugely popular CEO will retire on May 1.
A longtime leader at Domino's since 2011, Ritch Allison lead the company's successful Turnaround campaign and had been rumored to be an institutional fixture, much like Bob Iger at Disney or Howard Schultz at Starbucks.
His leaving landed with a thud despite the company's wobbling stock recently. Under the terms of the company's succession plans, Allison will step down and will be replaced by Russell Weiner, its current chief operating officer and president of Domino’s U.S.
Domino's did recently see its streak of same-store sales growth get snapped. That was a blow, given that the chain had posted quarterly same-store sales gains in every quarter since 2009, before its third-quarter 2021 drop.
The end of that impressive record was somewhat shocking, but few, if any, fans of the brand expected a change in the top job. Allison has framed his departure as a retirement. The outgoing CEO will also leave the company and not serve in a consulting or board-related capacity as both Iger and Schultz did after leaving the top job.
Why The Domino's CEO Shake-Up?
Domino's saw massive numbers during the pandemic when homebound consumers ordered takeout much more often than usual. That trend ebbed, however, when lockdowns eased and people began going back to work.
Domino's also was squeezed by the twin pressures of supply chain demand and what it called “unprecedented increases” in ingredients, materials for delivery, and even basic cleaning products needed.
It then had to pass those extra costs on to consumers, making a usually lower-priced food into something slightly more expensive, a difficult pivot for a beloved retail chain used across socioeconomic classes.
It should also be noted that Domino's struggles are relative. The chain has posted significant growth on a two-year basis. Its sales "miss" happened relative to pandemic-era numbers when pizza sales were hitting all-time highs for a variety of chains.
Meet the New Domino's CEO
Allison will step down on May 1, when both Weiner and Chairman David Brandon will step into new roles — Weiner as CEO and Brandon as the company's first executive chairman.
"Serving at Domino's for more than a decade, including the last four years as CEO, has been the privilege of a lifetime," Allison said in a statement.
"During that time, we and our franchises have achieved tremendous growth and today the Domino's brand is as strong as ever. While there is much that I will remember fondly, I am most proud of the culture that ties us all together—the 'sauce in our veins' that makes Domino's so special."
Domino's also said that the current chief financial officer of Six Flags, Sandeep Reddy, will join the pizza company as CFO on April 1.
The chain has struggled with its same-store sales, both domestically and abroad, seeing only a 1% uptick in the U.S. and 1.8% in international locations when analysts had expected 2.9% and 6.6% respectively.
In general, industry watchers were quick to weigh in on the change Wednesday.
Ritchie arrived at Domino's in 2011 after 13 years at consulting firm Bain & Co.
He quickly slid into senior positions but made his first big mark as executive vice president of Domino's International from October 2014 to July 2018.
While there he expanded the brand to more than 5,000 stores in 20 countries internationally,
But perhaps most importantly, Ritchie lead the pizza favorite into the competitive world of online ordering, taking its digital growth from only 11.5% of sales to more that 75%.
Weiner, too, has had a long career with the company. He arrived in as chief marketing officer when he was hired in 2018, leading a sales boom that went from $3 billion to more than $8 billion.
He even was integral in Domino's new logo and "pizza theater" store design, a huge hit with fans. During his tenure, the chain's store count also grew 25%, and doubled Domino's share of quick-serve pizza.
