Jubilant FoodWorks to focus on Domino's, Popeyes expansion in India

Jubilant FoodWorks to expand Domino's and Popeyes in India, target 200 bps margin rise in three years, and cut delivery time from 30 to 20 minutes while growing store network

Jubilant FoodWorks will continue to focus on expanding its pizza brand, Domino’s Pizza, and the fried-chicken brand, Popeyes, in the country.

 

The company has expanded Popeyes in Mumbai and opened three stores. It will soon open the fourth. 

 

In an interview with Business Standard, Sameer Khetarpal, managing director and chief executive officer, said: “The priorities are Domino’s and Popeyes. Brands take a long time to build. You have to stay focused, stay invested, build the supply chain, and build the brand, which is expensive. At the moment, we are investing only in Domino’s and Popeyes.” 

 

The company intends to stick to its target of opening 30-50 Popeyes stores every year and Khetarpal said its average daily orders for Popeyes were higher than those for the pizza.

 

 

He did not disclose the difference. 

 

Jubilant FoodWorks intends to expand its margins by 200 basis points over the next three years, Khetarpal said.

 

He, however, expects to expand the company’s margins at a faster pace. “First, growth itself will give you leverage. Operating leverage will come in and there are several initiatives in terms of reducing store-operating costs, corporate G&A (general and administrative) costs, and technology costs. We are confident we will deliver a 200 basis point improvement in three years.” 

 

Talking about expansion in Turkey, he said the company would open 40-50 stores in the country every year.

 

Khetarpal said the company would open more Coffy stores than Domino’s. 

 

The company is aiming to reduce its delivery time to 20 minutes from the 30 now.

 

While talking about demand in the quick-service restaurant (QSR) sector, Khetarpal said the company was focusing on four things. The team is looking at what it can control and not on external factors like weather, war, or slowdown in consumption. Secondly, he said the company was investing in technology and was focused on growing the share of its own application. It is concentrating on innovating its products. 

 

“The unorganised market is so big in India that it is the job of QSRs like Domino’s and Popeyes (to accelerate the shift from unorganised to organised). The most eaten chicken in India is tandoori chicken. If you go to South India, it will be Chettinad chicken.” 

 

He added the company was looking at getting people who had other food options from unorganised sectors to try pizzas and fried chicken. 

 

“We are growing well in metros and non-metros. I am not seeing a slowdown,” Khetarpal added. 

 

In its pre-quarterly update, ahead of its results, the company said its Domino’s India LFL (like-for-like) growth came in at 11.6 per cent. It also said that as of the April-June quarter’s end, the Jubilant FoodWorks group network reached 3,389 stores, with a net addition of 73 during the quarter. 

 

Domino’s India opened 61 stores and ended the quarter with 2,240.

 

Domino’s Turkey opened seven and closed down one. It ended the quarter with 752 stores.