Jubilant Foodworks to double number of Domino's stores in medium term

India has become the first market outside the US to hit 2,000 Domino's stores, and Jubilant Foodworks aims to double this number to 4,000 in the medium term. The foodservice company remains bullish on both dine-in and delivery segments and is also increasing investments in back-end grocery stores.

“We believe that we are still in the early stages of tapping the potential of a market like India. We plan to add around 180 stores in FY25. Going forward, we plan to add around 200 stores every year and will pick up the pace over the next few years as we see a recovery in same-store growth,” Sameer Khetarpal, CEO & MD, Jubilant Foodworks told BusinessLine.

The company has set a goal of doubling the number of Domino's Pizza stores to 4,000 over the next five to six years.

Art D'Elia, vice president, international, Domino's Pizza, said, “India is our first market outside the US to cross 2,000 stores. We see great room for growth in India. India is our top five market in terms of international sales (outside the US). India is one of the few markets where Domino's has a leadership position not just in the pizza category but also in the QSR category, which is a dynamic that is unique to India.”

To a question about the investment outlook, Khetarpal said, “We plan to invest around Rs 2,500 crore per annum. We plan to continue investing in this range for the next few years. This is a huge investment outlay. We are also investing in back-end kiosk outlets. We opened one outlet in Bengaluru during the last financial year. We have now started work on a kiosk in Mumbai.”

The QSR segment has seen weak demand over the past few quarters. However, Domino's Pizza India recorded positive year-on-year growth in the fourth quarter, driven by its focus on value proposition with initiatives such as free delivery.

“India continues to post strong GDP growth. There may be some headwinds in consumption and demand in the short term. But, I think things will improve over the next few quarters. A good monsoon will also help rural demand pick up for all consumer goods companies,” Khetarpal said.

As well as focusing on offering a clearer value proposition, the company has also focused on speeding up delivery: Nearly two-thirds of deliveries are now completed in under 20 minutes.

On the outlook for commodity prices, he said: “In India, inflation has come down from earlier decade-high levels. However, we continue to be cautious and monitor raw material costs. There has been a recent increase in milk prices and cheese is our largest cost in terms of raw materials. Seasonal rains and heat have also caused disruptions in the vegetable supply chain.”

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