Jubilant Foodworks, the master franchisee for Domino’s in India, aims to double its number of outlets to 4,000 within the next four years.
The pizza chain, now operating in 421 cities, inaugurated its 2,000th outlet in Gurugram on Monday.
Despite the slowdown affecting quick-service restaurants (QSRs), Domino’s remains optimistic about the Indian market.
“While QSRs have faced global pressure, we have not passed on price increases to consumers, resulting in strong sales traffic. Differential value remains very important to us, and hopefully, will help us to continue to win in the market,” Art D’Elia, executive vice-president, international, Domino’s Pizza, said.
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“India is our most important market outside of the United States. By offering an affordable opening price point, we’ve democratized pizza, making it widely accessible. This has positioned us not only as the foremost QSR pizza provider but also as the leading QSR player nationwide. This distinct value proposition will be the driving force behind our growth in the Indian market,” he elaborated.
Medium-term Objective: Opening 200 New Stores Annually
The company is aiming to open approximately 200 new stores in India each year as part of its medium-term objective.
“A significant portion of the country still lacks access to high-quality pizza. Our aim is to expand into as many cities as possible. Leveraging the enhanced road infrastructure, we’re establishing outlets along major highways. Additionally, we’re endeavoring to penetrate prominent malls, where we already have a presence, as well as colleges and universities,” explained Sameer Batra, Chief Business Officer and President of Domino’s India.
“We perceive substantial potential in the Indian market. Currently, only a small fraction of the population consumes pizza outside the home. With an anticipated increase in the frequency of dining out, driven by a younger and wealthier demographic, pizza consumption is poised to rise,” Batra emphasized.
Having launched a facility in Bengaluru last year, the chain is presently constructing a new factory on the outskirts of Mumbai to support forthcoming restaurant expansions.
The chain’s delivery service has experienced continuous growth.
“We’re witnessing rapid growth in our delivery segment, and our strategy is to outpace the industry, which typically grows at a rate of 10-12 percent year-on-year. Offering free deliveries has added value for customers and contributed to the acceleration of our growth,” he explained.
Shifting Focus to Dine-in Experiences
Nevertheless, the company, which annually serves over 200 million pizzas, is now shifting its focus to dine-in experiences.
“Expanding our dine-in business is a major priority. We’re refurbishing 70-100 older stores annually and constructing new ones to enhance the overall customer experience,” Batra stated.
The company is additionally concentrating on expanding its gourmet selection.
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“The gourmet range’s contribution to overall sales has risen to the low double digits. It has performed exceptionally well. We aim to expand it into a broader platform, featuring offerings beyond pizza,” he elaborated.
“The gourmet range’s contribution to overall sales has increased to the early double digits. It has performed admirably. We aim to evolve it into a broader platform, encompassing offerings beyond pizza,” Batra added.