Jubilant FoodWorks is looking to ramp up its focus on Domino’s value offerings as the QSR sector experiences sluggishness in the dine-in segment. As the leading food services company that introduced Popeyes to the National Capital Region, it expects the brand to emerge as the fastest QSR chain to cross the INR 1,000 crore-mark in the next 4-5 years.
Sameer Khetarpal, CEO & MD, Jubilant FoodWorks Ltd, said, “I think it is a time where we need to pass more value to consumers. In high-inflation environment, consumer tighten their purse strings and conserve cash. For Domino’s delivery is growing faster than we expected and delivery is positive in terms of like-for-like. We are bringing in some better value propositions for our dine-in customers.”
He further stated that the emphasis will be on introducing “more value-conscious meals and combos” for Domino’s dine-in patrons in the current quarter.
This comes at a time when delivery sales growth have been outpacing dine-in sales for the QSR sector.
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“India has the cheapest price per delivery and so it is very economical to order at home. With rapid urbanisation and people having less time, it is convenient to order food at home. With the emergence of the aggregators, delivery has been more democratised. Therefore one is seeing compression in dine-in, which is consistent with trends being seen globally,” Khetarpal explained. He added whenever there are festival occasions consumers do come out and loosen their purse strings but otherwise they have been focusing on conserving cash.
The company inaugurated its 33rd Popeyes store on Wednesday. We want to get to about 250 Popeyes stores in the next 4-5 years. We want it to be the fastest QSR to get to INR 1,000 crore in India in that timeframe,” Khetarpal added.
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The company plans to add four more stores in the Delhi-NCR region.
Responding to a query on inflationary pressures, he said, “Inflation has been on a decadal high especially for the ingredients that we buy for Domino’s. But we do see softening in inflation as government has taken measures to keep it benign.”
He further mentioned that the company’s gross margins have grown year-on-year due to several cost-saving measures.
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