Domino's India now eyes the Tier II cities for expansion

Domino's Pizza plans to expand to smaller towns in India. Boasting of a 65% market share in the Rs 1000 Cr Indian Pizza Market, the company is aggressive on brand building including increased spending on marketing and special offers.

In terms of top global markets for Domino's, India is currently ranked at ninth position.

Domino's currently has 19 pizza variants in the Indian market, besides five non-pizza items, including choco lava cakes and pasta which were introduced last year.

The company will undertake a major brand building exercise which will include substantial use of advertising, besides special offers.

Bhartia Group-promoted Jubilant Foodworks is the Indian master franchise for Domino's Pizza. Earlier this year, the company went for an IPO in India, becoming only the fourth subsidiary outside the USA where the brand is listed.

Jubilant Foodworks opens 16 new stores in Q3

Jubilant FoodWorks Ltd (JFL), a leading food service company and master franchisee of Domino's International, has opened 16 new stores in Q3 FY2010. The company opened 55 new stores in nine Months for FY2010. 

The number of cities covered as on 31 December 2009 at 65 as compared to 43 as on 31 December 2008. Jubilant Foodworks expects FY 2010 profit at Rs 32 crore. 

JFL is confident of delivering such strong growth-oriented performance on a sustainable basis going forward. In the current year and moving to the next quarter the company believes that it will maintain its growth momentum thus reporting an outstanding performance in its year of listing. For FY2010 the company expects revenues to range between Rs 4,150-4,200 million resulting in an increase of 48 to 50 per cent compared to the previous year, EBITDA is expected to be Rs 650 million implying an upside of 87 per cent and PAT at Rs 320 million, translating to a growth of about 375 per cent.

Meanwhile, JFL plans to continue its network expansion by not only opening new stores but also by penetrating further into existing cities. In FY2010, the company plans to open 65-70 new stores, out of which it has successfully opened 55 stores as of 31 December 2009. JFL continues to seek new opportunities for growth; placement of stores in corporate campuses, food courts and shopping malls also provide potential for expansion for JFL. 

With strong potential in quick service restaurant (QSR) industry and given JFL's foothold in the pizza market, the company has in place an ideal formula for sustained growth going forward.

Source:  Inside Franchising