Jubilant FoodWorks signs PepsiCo for Domino's Pizza India

Domino’s Pizza, India’s largest pizza chain, has introduced Cheesiken and a new range of chicken-based products, designed to appeal to chicken enthusiasts. This expansion marks a significant step in Domino's efforts to cater to diverse tastes and enhance its menu offerings.

Cheesiken is a unique addition to the Domino’s menu, featuring a bed of grilled chicken topped with sauces, cheese, vegetables, and rice. This innovative dish combines the flavors of cheese and chicken in a novel way. Chella Pandyan, Chief Growth and Marketing Officer at Domino’s India, commented, “We constantly evolve our portfolio to align with consumer expectations. This new portfolio and the introduction of Cheesiken represent our passion for culinary creativity and our commitment to continually enhancing our menu. We are excited to bring these new offerings to our customers.”

The Cheesiken range is available in three flavors: Cheesy Garlic, Tangy Tomato, and Hot and Fiery. Each variation is designed to satisfy different spice preferences, offering a tasty and filling meal option suitable for lunch, dinner, or any time. Starting 15th July, the new chicken range will be available in Tamil Nadu and Kerala at affordable prices.

To promote the launch of Cheesiken, Domino’s has released a TV commercial highlighting the appeal of its newest offering. The TVC, conceptualized by FCB Interface, showcases the irresistible nature of Cheesiken and aims to attract customers to try the new menu items.

Jubilant Foodworks Limited, the popular fast-food brands Domino's Pizza and Dunkin' Donuts, reported a 26% decrease in its combined net earnings for the second quarter (Q2) ending in September 2023.

This decline in profit amounted to Rs 97.20 crore, in contrast to the Rs 131.53 crore in net profit during the corresponding period of the previous financial year. This information comes from an official regulatory filing.

The company saw an increase in its overall revenue, reaching Rs 1,375.69 crore during Q2 FY24, compared to the Rs 1,311.92 crore recorded in Q2 FY23.

Shyam S. Bhartia, Chairman, and Hari S. Bhartia, the Co-Chairman of Jubilant FoodWorks Limited, stated, "Our primary focus remains on pursuing growth, fostering innovation, and capitalizing on opportunities to improve profitability. Our investments in technology and delivery methods are yielding positive results, as we achieved favorable like-for-like growth in this area. Additionally, our mobile app experienced higher-than-anticipated traffic. We intend to continue investing in expanding our network of stores, enhancing technology, and strengthening our team to maintain our competitive edge and ensure our sustained long-term success."

According to the BSE filing, the company's total costs during the September quarter grew to Rs 1,290.16 crore in Q2 FY24, in contrast to the total expenses of Rs 1,153.92 crore incurred during the corresponding period in the previous fiscal year.

Sameer Khetarpal, CEO and Managing Director of Jubilant FoodWorks Limited, remarked, "Our growth is primarily being driven by an increase in customer orders, with a notable increase in consumer interaction. Furthermore, the decline in average transaction size has been halted. Additionally, we've observed two consecutive quarters of gradual improvement in the average daily sales of established stores, and our gross margins show promising early signs of long-term business health enhancement. Each action we're taking not only helps us address short-term challenges but also establishes a strong foundation for the future growth of our business."

In the quarter, the company expanded its presence by inaugurating 60 new stores in India, bringing the total number of stores across all brands to 1,949.

By opening 50 new stores and making an entrance into three previously uncharted cities, Domino's India increased its network to encompass 1,888 stores, now spanning across 397 cities.

The company extended its reach by launching five new restaurants under the Popeyes brand and ventured into two previously untapped cities, Hyderabad and Madurai. This expansion brought the total number of Popeyes restaurants to 22, spread across six cities.

Hong's Kitchen also saw growth, with four new stores added to its network, resulting in a total of 18 stores across three cities.

For Dunkin', one new store was established in a new city, and 11 out of the 21 stores now align with the brand's coffee-focused identity.
 

Jubilant FoodWorks, the company responsible for operating Domino's Pizza in India, intends to allocate Rs 750 crore for capital expenditure during the current fiscal year.

The funds will primarily be used to establish approximately 220 new outlets and support other expansion initiatives.

Sameer Khetarpal, the Managing Director and CEO of Jubilant FoodWorks, revealed that the company aims to introduce 30 to 35 additional Popeyes restaurants in the ongoing financial year, increasing the total store count to 50.

Presently, the company operates 18 Popeyes outlets.

According to a statement given to PTI, Jubilant FoodWorks plans to invest approximately Rs 200 to Rs 250 crore in constructing new factories and Rs 500 crore in store expansion annually.

This translates to a total capital expenditure ranging from Rs 700 crore to Rs 750 crore per year. In the current year, the company aims to open around 200 to 220 Domino's outlets and 32 to 35 Popeyes restaurants.

Jubilant FoodWorks possesses the sole master franchise rights granted by Domino's Pizza Inc.

Jubilant FoodWorks has been authorized to develop and manage the Domino's Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. However, the company has yet to commence operations in Nepal.

Presently, Jubilant FoodWorks operates a vast network of more than 1800 Domino's restaurants spanning across 393 cities.

Sameer Khetarpal emphasized that the company solely owns all of these stores and has no intentions of pursuing any alternative models.

He explained that the company's decision to own and operate the stores at the company level is driven by the fact that it generates a significant return on capital and delivers excellent returns to its shareholders.

In the fiscal year 2023, Jubilant FoodWorks reported revenues from operations amounting to Rs 5,096 crore, along with a net profit of approximately Rs 403 crore.

American multinational pizza restaurant chain, Domino’s Pizza opened its second outlet in Rishikesh, Uttarakhand at Tapovan and a new outlet in Bhubaneswar at Nandankanan road.

In January 1996, Domino's Pizza launched its first location in India in New Delhi. The company currently has more than 1,500 outlets across the nation.

Domino's Pizza's master franchise is held by the Indian food service company Jubilant FoodWorks Ltd. in Bhutan, Nepal, Sri Lanka, and India

Jubilant FoodWorks Ltd. has introduced a number of well-known brands to India throughout the years, including Dunkin' and Popeyes. The business brought Popeyes, an American fried chicken fast food chain, to Bengaluru in January of this year.

Established in 1960, Domino's Pizza is a transnational American chain of pizzerias. The Domino's Farms Office Park in Ann Arbor Township, Michigan, is home to the company's headquarters. There are pizzerias under the brand in 5,701 cities and more than 83 countries worldwide.

This Pujo, to celebrate the biggest festivities of the east and be part of the fervour, Domino's Pizza, India's largest pizza chain has announced the launch of a new range of 6 new delectable pizzas inspired by the traditional Bengali palate. Taking a cue from the authentic local relishes, often prepared and enjoyed during Durga Pujo, the most celebrated festival in the eastern region, Domino’s has introduced pizzas in Bangla's famous flavours - Kasundi, Kosha, and Malai.

Domino’s, known for consistently innovating its menu to cater to the varied tastes and preferences of consumers across India, has always considered the eastern region one of its flagship markets. The launch of this new range is strategically aligned with the focus on east India and the festivities people celebrate here. This is the first time any QSR brand has crafted its menu inspired by Bangla cuisine and the flavours of the eastern region of India.

In-depth research conducted by Domino’s to understand the tastes and preferences of the consumers in the region revealed that the local cuisines dominated the consumers' palate. The brand found this opportunity as a sweet spot to offer consumers a differentiated product, bringing the best of both worlds - the goodness of pizza with the authentic flavours of Bangla.

Speaking about the launch, Sameer Khetarpal, Chief Executive Officer & Managing Director, Jubilant FoodWorks Limited, said, “At Domino's, our endeavour has always been to cater to our consumers' ever-evolving preferences. The eastern region is a key market for us and our team has focused on developing new flavours of pizzas that capture the Bangla essence. By launching the new range of pizza during the Pujo season, we are elated to be a part of the celebrations and the festivities. We look forward to expanding the range and growing further in this region.”

Opening its doors in September 2019, Nomad pizza arrived with the mission to make the best pizzas in Delhi.

After opening 10 outlets that is spread over Delhi NCR and Chandigarh, it recently entered Mumbai.

The brand has plan to launch another 5 outlets in the next 2 months to cover the city.

Created with the desire of elevating the pizza-eating experience, the brand sought to expand through its unique concept of ‘pizzas from around the world’.

Nomad Pizza serves pizzas from different regions of the world – from America to Korea. Using high quality, fresh ingredients, and the brand launches a variant from a different country quarterly, keeping the anticipation and excitement intact.

It currently has outlets in Malviya Nagar, Vasant Vihar, New Friends Colony, Noida, Gurgaon, Baani Square, Rajouri Garden, Chandigarh, Bandra, Andheri and Tardeo.

Nomad is also planning to launch 100 outlets in the next 3 years.

Aimed at cost savings, the Jubilant Food-Works (JFL) operated Domino’s Pizza may end its 20-year long exclusive deal with Coca-Cola in India to rope in PepsiCo. JFL is looking at boosting profitability as India is a critical market for Domino’s.

The Michigan-based single largest quick service restaurant chain, with a global footprint in 85 countries and 1,144 stores in India, had exclusive partnership deals with Coca-Cola worldwide. However, there were few exceptions such as Australia, New Zealand and Malaysia where it serves PepsiCo brands.

A JFL’s spokesperson said, “We have enjoyed a strong partnership with Coca-Cola India over the last 20 years. As we look to build our business for the next phase of growth, we have initiated a process to look at various options and identify the right beverage partner who can help strengthen our beverage portfolio and drive growth”.

Rivals such as Yum! Brands that operates Pizza Hut, KFC and Taco Bell has had a long-standing partnership with PepsiCo, while McDonald's has always been associated with Coca-Cola.