Jubilant upbeat on demand momentum, targets 3,000 Domino's stores by 2028

The company has started seeing tailwinds in both deliveries and dine-in, with like-for-like (LFL) sales growing by 12.5 per cent year-on-year

Jubilant FoodWorks, the master franchise for Domino’s in India, looks to expand the pizza chain to 3,000 outlets in the next three years. This comes on the back of demand momentum remaining upbeat despite concerns of a consumption slowdown.

 

Jubilant, which also operates Dunkin Donuts and Popeyes, has 2,000 Domino’s outlets at present.  

 

“The government has taken a lot of efforts to boost consumption. Apart from the tax breaks announced in the Budget, interest rates have softened. A new pay commission is also expected to come in next year. These will all help drive consumption,” said Sameer Khetarpal, chief executive officer and managing director, Jubilant FoodWorks.

 

 

The company has started seeing tailwinds in both deliveries and dine-in, with like-for-like (LFL) sales growing 12.5 per cent year-on-year, driven by delivery LFL growth of 24.7 per cent in the third quarter of FY25.

 

While inflation remains a concern, Jubilant FoodWorks has no plans to hike prices in the near future.

 

“At the moment, we have not taken any price hikes and have given back to the consumer by introducing free deliveries. We are not thinking of price hikes and are focused on driving growth in the business and acquiring new customers,” Khetarpal said.

 

The Indian food services market, he said, is valued at $60 billion, of which pizza makes up only $1 billion. This gives the brand a significant headroom for growth.

 

“When sentiments improve, hopefully we will see faster growth, majority of which will flow into our store economics,” Khetarpal added.

 

To help drive efficiencies, the company on Thursday, launched a new android-based point-of-sale (POS) system ‘Elate’. 

 

“This technology helps us get faster into newer cities and towns, allows supervisors to manage stores better, provide real-time help to the store manager and the team, while also auditing and ensuring governance and compliance in terms of food safety and other legal compliances,” he said.

 

While Domino's continues to be the company's largest revenue generator, Jubilant is also attempting to break into the fried chicken market with its Popeyes brand, competing with market leader KFC.  

 

"We plan to remain focused on growing this and scaling it up to 100 stores in the coming three years from 60 stores currently. Popeyes will be focused on the metro cities," Khetarpal said. However, this growth for the brand will be on a smaller base, as Popeyes is a relatively new entrant, having launched in 2022.

 

In the December quarter, the company’s revenue increased 56 per cent to ₹2,150.7 crore from ₹1,378 crore in the year-ago period. Meanwhile, its net profit dropped 34.2 per cent to ₹43.2 crore from ₹65.7 crore in the same period.