Jubilant FoodWorks which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, has shut 13 Dunkin’ Donuts and 8 Domino’s stores in Q4FY17.
Jubilant FoodWorks which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, has shut 13 Dunkin’ Donuts and 8 Domino’s stores in Q4FY17. The company has also sharply cut store opening guidance in FY18 to 40 to 50 Domino’s stores as against last 3 years average of around 130 to 135 stores in FY18, said Shyam S Bhartia, chairman, Jubilant Foodworks at a post earnings conference call.
The call was taken considering the losses incurred in operating certain store. Apart from that there was a steep rise in operational costs. Shutdown of store will help Domino’s to consolidate some losses and increase the overall profitability.
Pratik Pota, CEO and whole time director, Jubilant FoodWorks said, “We intensified our cost optimization drive across all functions in the organization. In addition, we also sharpened our strategy to get growth back in the business.”
76% decrease in profit is definitely not acceptable by share holders. Domino’s is competing with Pizzahut, Macdonald’s and several other junk food chain. Indian fast food market is expected to grow at a CAGR of 18% by 2020 due to changing consumer behavior and demography.Fast food market in India is expected to be worth US$ 27.57 billion by 2020.