Sunday, July 14, 2024

Domino’s Pizza Crosses 2,000 Stores in India, Aims to Double

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Domino’s Pizza, operated by Jubilant FoodWorks Ltd (JFL) in India, has achieved a major milestone by opening its 2,000th store in the country. This marks a significant accomplishment for the brand, which entered the Indian market 28 years ago in 1996. To celebrate this milestone, the company launched seven new stores across different regions nationwide.

Domino’s growth in India has been remarkable. The first 500 stores took over 16 years to open, but the last 500 stores were opened in just 29 months. This rapid expansion highlights the company’s increased efforts to grow its presence in India.

Plans to Double Store Count to 4,000

Domino’s has ambitious plans to double its store count in India to 4,000 within the next 5-6 years. Art D’Elia, Domino’s Executive Vice President, International, said, “It’s the first time that a country outside of the US has reached over 2,000 stores.” The company plans to add around 180-200 stores in the current fiscal year, with a capital expenditure of Rs 250 crore for FY25, mostly dedicated to expanding the pizza business.

Why India is a Key Market for Domino’s

India has become Domino’s top market outside the United States, serving over 200 million pizzas annually through its network of 2,000 stores in 421 cities. The Indian market offers a “huge growth opportunity” due to its growing economy and expanding middle class. Domino’s has made pizza accessible to a broader audience in India, contributing to its rapid growth.

Art D’Elia stated, “We expect India to continue to be one of the fastest-growing markets in the world. It’s a top-five market today, and we expect it will continue to climb up the ranks in the size markets that we have outside of the US.”

Domino's Pizza India store expansion
Domino’s pizza store in Delhi-NCR.

Challenges and Resilience

The quick-service restaurant (QSR) sector in India is undergoing significant changes. According to Sameer Khetarpal, CEO and MD of JFL, demand for Domino’s pizzas had slowed post-Covid due to inflation but has revived after the softening of key commodity prices. Khetarpal expressed cautious optimism for growth, noting concerns about rising wheat and milk prices, which are essential ingredients for pizzas.

Despite these challenges, Domino’s has managed to open one new store every two days post-Covid, showcasing its resilience and commitment to growth.

Jubilant FoodWorks Market Presence

Jubilant FoodWorks Ltd. operates Domino’s and holds franchise rights for other brands such as Popeyes, Dunkin’, and Hong’s Kitchen. As of March 31, 2024, JFL was operating 2,793 stores globally. The company plans to focus on its existing markets, including India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia, without immediate plans for expansion into new markets. In India, JFL aims for a balanced approach by expanding in both existing large markets and new smaller tier III and IV locations.

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