Jubilant FoodWorks, the company behind the Domino’s Pizza brand in India, has announced its intention to invest INR 750 crore in capital expenditure during the current fiscal year. This significant investment will primarily be allocated towards the opening of approximately 220 new outlets, among other initiatives.
Sameer Khetarpal, the Managing Director and CEO of Jubilant FoodWorks, has revealed the expansion plans of the pizza-chain. According to Khetarpal, they intend to open 30 to 35 new Popeyes restaurants in the current financial year, which will significantly increase the store count from the current 18 to a total of 50.
In a year we are investing about INR 200 to INR 250 crore in building new factories and we are investing about INR 500 crore in stores. Roughly INR 700 crore to INR 750 per annum on capital expenditure. This year we plan to open 200 to 220 Domino’s and 32 to 35 Popeyes, he told PTI.
Jubilant FoodWorks possesses the exclusive master franchise rights granted by Domino’s Pizza Inc. for the purpose of establishing and managing the Domino’s Pizza brand across India, Sri Lanka, Bangladesh, and Nepal. However, the commencement of operations in Nepal is still pending.
At present, the company operates an extensive network of more than 1800 Domino’s restaurants, spanning across 393 cities.
Khetarpal stated that the firm exclusively owns all of its stores and has no intentions to explore any alternative models.
The reason is we get a very good return on capital and our shareholders get very good returns, so, therefore, our model is to own and operate at the company level, he said.
Jubilant FoodWorks clocked INR 5096 crore in revenues from operations and around INR 403 crore bottom line in FY 23.
Asked about the revenue projection this fiscal, without giving a direct reply, he said the food services industry has been growing at 8 to 9 per cent per annum.
Replying to a query on the spiraling commodity prices and its impact on the prices of the products, Khetarpal said the prices of cheese which is the single biggest cost of one of the ingredients, is at a decadal high largely driven by the milk prices.
He, however, maintained that the company has no plans currently to increase the prices of its products. With the increased internal effeminacies the commodity price hike is being absorbed.
Meanwhile, Jubilant FoodWorks today announced the inauguration of Popeyes, the iconic US fried chicken titan, in Hyderabad.