Amid faltering profits, Jubilant Foodworks has initiated a makeover drive for its leading pizza chain brand Domino’s, which its management expects would boost the company’s growth in coming years. The company, holding the master franchise for the American pizza chain in India, is planning to come up with revamped restaurants, promotional campaigns, new-look delivery system and new outlets, senior executives said.
Jubilant, which leads the quick service restaurant (QSR) chains market in India with close to 1,900 Domino’s outlets spread over 400 towns, today unveiled its new campaign 'It Happens Only with Pizza’ - aimed at expanding the scope of pizza consumption to more occasions. According to the company, while a consumer has some 1,000 meals a year on an average - pizza’s share stands at a meagre 0.3 per cent or 3 meals a year. With its new campaign it now aims to gradually expand the number of meals that include pizzas, which in turn will help its sales.
During the first six months of FY24 - between April-September - Jubilant reported a 5 per cent surge in its operating revenue to Rs 2,654 crore - up from Rs 2,527 crore. Its net profit plunged 33 per cent to Rs 147.3 crore as steep rise in commodities prices continued to impact its profitability.
"While Domino’s is a leader in pizza category, through ‘It Happens Only with Pizza’, we intend to target consumers' mindshare to gain and grow share of pizza occasions. Out of 1,000 meal occasions in a year, pizza is consumed only thrice. A 360-degree communication, including stores and delivery boxes, brings the experience in an integrated manner, allowing Domino’s to gain share of occasions in a $51 billion foodservice market, where pizza is just $ 1 billion,” said Sameer Khetarpal, MD and CEO, Jubilant FoodWorks.
To back it up, the company is planning to add 200 stores every year, including FY24 that will help it cross the 2,000 store count mark by the end of the financial year. Domino’s had some 1,816 stores at end-FY23. Additionally, the drive includes revamping its restaurants, new packaging and a fresh look to its delivery system - particularly appealing to consumer from Gen Z and young millennials.
This initiative forms a cornerstone of Domino's "Brand Relaunch" campaign, encompassing a fresh packaging design and a comprehensive brand overhaul. Domino's has also brought alive 3D anamorphic billboards in Delhi for the first time in the QSR industry. This visual spectacle will feature larger-than-life representations of key IHOP moments, mirroring the new packaging design to enhance brand recognition, it said.
Out of the $50 billion food services market in India, the QSR segment forms 9.6 per cent or $4.8 billion, while street food kiosks dominate with a 68 per cent ($34 billion) share. However, the QSR segment is expected to grow at 14 per cent CAGR over the next decade.
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