Amid falling profits, Jubilant Foodworks has launched a transformation campaign for its leading pizza chain brand, Domino’s, which its management says is expected to drive the company’s growth in the coming years. The company, which owns the American pizza chain’s master franchise in India, plans to bring renovated restaurants, promotional campaigns, a new delivery system and new outlets, senior executives said.
Jubilant, India’s market-leading Quick Service Restaurant (QSR) with nearly 1,900 Domino’s outlets across 400 cities, today unveiled its new campaign ‘It Only Happens With Pizza’ – targeting to expand the scope of pizza consumption to more occasions. . According to the company, while the average consumer consumes around 1,000 meals per year, pizza’s share stands at a paltry 0.3 percent, or 3 meals per year. With its new campaign, the company now aims to gradually increase the number of dishes including pizza, which will help its sales.
In the first six months of FY24 – between April and September – Jubilant reported a 5 per cent increase in operating revenue to Rs 2,654 crore – from Rs 2,527 crore. Its net profit plunged 33 per cent to Rs 147.3 crore as sharp rise in raw material prices continued to impact its profitability.
“While Domino’s is the leader in the pizza category, through ‘It Only Happens With Pizza’, we intend to target the minds of consumers to win and increase share of opportunity pizza. Out of 1,000 meals per year, pizza is only eaten three times. 360-degree communication, including stores and delivery boxes, brings the experience in an integrated way, allowing Domino’s to gain market share in a $51 billion restaurant market, where pizza represents only “a billion dollars,” said Sameer Khetarpal, MD and CEO. , Jubilant FoodWorks.
To support this, the company plans to add 200 stores every year, including FY24, which will help it cross the 2,000 store mark by the end of the fiscal year. Domino’s had some 1,816 stores at the end of FY23. Additionally, this initiative includes the redesign of its restaurants, new packaging and a new look for its delivery system – particularly appealing to Gen Z consumers and young generation Y.
This initiative forms the cornerstone of Domino’s ‘Brand Relaunch’ campaign, which encompasses a new packaging design and a complete brand overhaul. Domino’s also brought 3D anamorphic billboards to life in Delhi for the first time in the QSR industry. This visual spectacle will feature larger-than-life depictions of IHOP’s key moments, reflecting the new packaging design aimed at improving brand recognition, it said.
In India’s $50 billion food services market, the QSR segment accounts for 9.6 percent, or $4.8 billion, while street food kiosks dominate with a 68 percent share ( 34 billion dollars). However, the QSR segment is expected to grow at 14% CAGR over the next decade.
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