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1000 open, 800 to go: Domino’s bets on tech to achieve scale


Investment in tech similar to Starbucks & McDonald’s as QSRs race towards mega scale in India.

Its just celebrated the milestone of its 1000th outlet and Domino’s is already midway through plans for 800 more, at 200 per year for four years. A massive, undisclosed investment in technology will serve at its base for this push.

Global president & CEO, Patrick Doyle described Domino’s as among the world’s top five e-commerce companies with digital-led sales in the range of USD 5 billion. This makes up almost 50% of all sales, a ratio he is looking to replicate here in India.

Domino’s is the world’s second largest pizza company after Pizza Hut, yet it has around 72% market share of India’s organized pizza market.

Worldwide, it’s app has been downloaded 3.5 million times and 5 million people follow it on Facebook. In India, orders from smartphones contribute 30% to Domino’s digital business making it among the fast growing streams of revenue since average transaction value online is significantly higher than the offline equivalent.

Ajay Kaul“Around 50% of our total sales comes from deliveries and 35% of that now comes from digital orders. We are investing heavily in tech and putting in more people there than anywhere else,” said Ajay Kaul, CEO, Jubilant Foodworks, master franchisee for Domino’s and Dunkin Donuts in India.

Domino’s has been in India for two decades. Sales here contributes 5% to the global revenues while the US, where it has about 5,000 stores, accounts for 50%. The company is betting big in India because its track record in China, the other big Asian powerhouse, has been dismal. “India, with its growing middle-class population, holds great potential,” said Doyle.

“Customers are smarter than ever. Companies have to adapt to fast-changing consumer environment. Five years ago, when we would take orders over the phone, who would have thought that one day, half of our sales would come from digital sources,” said Doyle.

Source: Times of India

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