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Domino’s bets Rs 100cr to prepare better pizzas


NEW DELHI: Jubilant FoodWorks (JFL), which operates Domino’s Pizza and Dunkin’ Donuts chains in India, will invest around Rs100 crore over the next 12 months to relaunch its pizza offerings in the country.

“The pizzas will be larger, have more toppings and new ingredients,” said JFL CEO Pratik Pota. “However, we will absorb the cost and not increase prices.”

JFL, which operates over 1,120 Domino’s Pizza outlets across the country, had embarked on an aggressive cost-cutting exercise earlier this year, including reducing manpower per store and closing down some of the nonprofitable ones.

Last month, JFL reported 25.5% rise in June quarter net profit to Rs 23.8 crore, helped by increase in same store sales growth of Domino’s Pizza.

Same store growth refers to year-over-year growth in sales for restaurants in operation for two whole years.

However, the company had shut 20 Dunkin’ Donuts stores in the previous fiscal, of which 13 were shut in the last quarter. When asked about the brand, Pota said: “Our focus is to reduce our losses in Dunkin’ Donuts by half this financial year and reach break-even point next year.”

Source: Times of India

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