The fastest growing food brands with a network of 411 stores (as of 30 September, 2011) Jubilant FoodWorks Limited (JFL), operator of Domino’s Pizza is dominating the organised pizza market with 50 per cent market share in India. The brand has exclusive rights to operate Domino’s Pizza in India, Nepal, Bangladesh and Sri Lanka. Established in 1995, Jubilant FoodWorks Limited (JFL) initiated its operations in 1996. The company has now entered into an alliance with Dunkin’ Donuts, for developing the brand and operating restaurants in India. With the success of Domino’s Pizza, the company is heading for the success plan of Dunkin’ Donuts. This case study discusses company’s growth in the business.
Growth
Prior to September 2009, the company was known as Domino’s Pizza India Limited and underwent a name change with terms remaining the same. Domino’s Pizza opened its first store in January 1996. Since then the company has grown enormously with current number of 411 stores. The company opened 19 Domino’s pizza stores in Quarter two of the Fiscal Year 2012 (Q2 FY2012) marking its presence in 96 cities. In August 2011 the brand successfully launched operations in Sri Lanka by opening its first store in Colombo. Jubilant FoodWorks Limited’s progress this quarter is a continuation of the trends that have been seen over the last several quarters. Domino’s Pizza as a brand continues to gain traction and has expanded its network by opening 19 new stores during Q2FY12. The company seems confident that its investment in innovation and focus on new product development is generating a wave of great products that positions it well to deliver on its growth agenda.
Dunkin’ Donuts to debut
Presently, JFL is focusing on laying the foundation for Dunkin’ Donuts launch in India which is expected in the first half of the year 2012. The company initially will focus on metros for the store roll out, with the phased target of 80-100 stores in the span five years. The company plans to launch Dunkin’ Donuts are progressing well and is currently focused on building a robust foundation for the brand. Going ahead, the company is confident that JFL is on the right strategic course to deliver continued growth and superior shareholder returns for this fiscal and beyond.
Maintaining the position
With time the brand has been introducing new delicious products, offering value for money deals to the customers. Successful launch of new cold and hot sweet treat ‘Butterscotch Mousee’ and ‘Choco Lava’ added dessert to its menu. Brand positioning deals like ‘Khushiyon ki Home Delivery’ by the brand is a beneficial offer for customers by delivering order in 30 minutes or free. JFL launched Fun Meal and Pizza Mania consumers looking for an affordable and value for money meal option.
Future vision of JFL
The Company is set to achieve its store expansion target for Domino’s Pizza. At the start of this fiscal, JFL had undertaken plans to launch around 80 new Domino’s Pizza stores, of which the Company has successfully launched 33 new Domino's stores by September 2011 and has signed additional 29 stores for opening in the current fiscal year. On the future growth of the brand Ajay Kaul, CEO, Jubilant FoodWorks Limited said, “Our concerted strategy for making steady progress has yielded positive results and we believe the opportunities in the future are extremely promising. Moreover, we are delighted by our recent entry into Sri Lanka, which has been a great experience and opportunity for JFL to utilise its expertise and consumer knowledge to introduce the iconic Domino’s Pizza brand to more people in the region.”
With regards to Dunkin’ Donuts, JFL is committed to roll out the stores in a phased manner and expects to launch first Dunkin’ Donut store in the first half of the calendar year 2012 with the initial focus on metros. Kaul said, “With brands like Dunkin Donuts added to our portfolio, JFL is well positioned to capitalize on market opportunities and report further growth.”
In conclusion we can say that JFL is one of the best QSR brand operator which is contributing in the growth of F&B industry of India. Moreover the company has shown its potential to bring in the international brands to India and has achieved major growth in India, Sri Lanka, Nepal and Bangladesh.
