 "Jubilant FoodWorks to invest Rs 750 cr in FY23 towards capital expenditure")
Jubilant FoodWorks, which operates the Domino's Pizza brand in India, plans to invest Rs 750 crore towards capital expenditure this fiscal to be spent for opening around 220 outlets and others.
Sameer Khetarpal, MD and CEO of Jubilant FoodWorks, said the pizza-chain plans to open 30 to 35 Popeyes restaurants in the current financial year to take the store count to 50. Currently, the number is 18.
In a year we are investing about Rs 200 to Rs 250 crore in building new factories and we are investing about Rs 500 crore in stores. Roughly Rs 700 crore to Rs 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 holds the exclusive master franchise rights from Domino's Pizza Inc. to develop and operate the Domino's Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. However, the operations in Nepal are yet to start.
Currently, the company runs a network of over 1800 Domino's restaurants across 393 cities.
Khetarpal said all the stores are owned by the firm and they have no plans to get into any other model.
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 Rs 5096 crore in revenues from operations and around Rs 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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