Jubilant FoodWorks

Current Corporate Analysis

2022

Passion to serve

SUBMITTED TO – SUBMITTED BY –

MRS. GEETHANJALI G  TANISHK (41)

 SHALWI (42)
 VIDIT (43)
 AMISHA (44)
 SHRUTI (45)
 HARI (47)
 SHIPRA (48)
 PRIYANSHU (49)
 GARIMA (50)
 Company Profile
Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia Group and is
India's largest food service Company. The Company holds the master franchise rights for
three international brands, Domino's Pizza, Dunkin' Donuts and Popeyes addressing three
different food market segments. The Company launched its first homegrown brand – Hong's
Kitchen in Chinese cuisine segment & has also begun offering brand-owned ready-to-cook
range of sauces, gravies and pastes, 'ChefBoss'. The Company also entered into the exciting
world of Biryanis with the launch of "Ekdum!". It offers the widest range of Biryanis curated
from various parts of India using authentic ingredients along with extensive range of Kebabs,
Curries, Breads, Desserts and Beverages.

The Company currently operates more than 1,625 outlets for Domino's Pizza, Dunkin' Donuts
and Hong's Kitchen and is a market leader in pizza segment. The Company has more than
30,000 brand ambassadors committed to deliver value to its customers.

Corporate history
 Jubilant Bhartia Group was incorporated on 16 March 1995, and began operations in
1996. The company opened India's first Domino's Pizza outlet in New Delhi in 1996. The
company changed its name to Jubilant FoodWorks Ltd in 2009. It was headed by Ajay Kaul
since 2005.
On 24 February 2011, Jubilant FoodWorks signed a master franchise agreement with
American coffeehouse chain Dunkin' Donuts to operate the brand in India. Jubilant
FoodWorks opened India's first Dunkin' Donuts outlet in Connaught Place, New Delhi in
April 2012.
In the year 2001 the company made a tie-up with Hindustan Coca-Cola Beverages Pvt Ltd. In
the year 2003 they became the subsidiary of Jubilant Enpro Pvt Ltd. In the year 2004 they
launched '30 minutes or free' campaign.

Vision of the company

To create sustainable value in the social and environmental spheres and enhance relationships
with the community, customers, employees and all other stakeholders.

Mission of the company

To work on the popularity, adoption, and implementation of the concept of Corporate Social
Responsibility while adding measurable values to the community.

Management team
 Ashish Goenka
Executive Vice President &
Chief Financial Officer

Avinash Kant Kumar

President, Integrated Supply Chain

Vaneet Singla
Executive Vice President and Chief Product Officer

Deepti Gupta
Executive Vice President – Human Resource, CSR
and Administration

Pillars at JFL
1. Operational Excellence:
JFL’s Operational excellence can be seen on all three levels, those being:
On the supply chain Level:

- Stringent selection & monitoring process of new and existing suppliers based on key
performance indicators for Quality and Food Safety requirements.
- FSMS- Food Safety Management System Certified Food Suppliers and Moving all vendors
towards FSMS certification.

(According to the International Standard ISO 22003, FSMS is defined as a set of

interrelated elements that establish policy and objectives. With the aim to achieve
objectives some policies are used to direct and control the organization so that food safety
is maintained.) - Source - https://foodsafetyhelpline.com/definition-fsms/

- NABL Accredited Third Party Assessments Initiation for Core ingredient supplying Food
Vendors.

(National Accreditation Board for Testing and Calibration Laboratories provides

accreditation to Conformity Assessment Bodies in India) - https://nabl-india.org/
- Alliances with all vendors to continuously enhance Quality and Food safety norms and
comply regulations

On the restaurant Level:

- Training on standards of Food safety and Quality

- Regular QA Assessment
- Third party assessment through NABL Accredited agency
- Regular compliance checks of food processes as per FSSAI (Food Safety and Standards
Authority of India) guidelines Continual surveillance assessment of restaurants under ISO
22000 certification.

(ISO 22000 sets out the requirements for a food safety management system and can be
certified to it. It maps out what an organization needs to do to demonstrate its ability to
control food safety hazards in order to ensure that food is safe. It can be used by any
organization regardless of its size or position in the food chain.) - Source -
https://www.iso.org/iso-22000-food-safety-management.html

On the Commissary Level:

- Training of staff and managers on comprehensive standards of Food safety and Quality.
- Stringent sampling of all raw materials & COA approach acceptance.

(Certificate of Analysis (COA) – A document containing test results that are

provided to the customer by the supplier to demonstrate that product meets the
defined test. Control Point – Any step in the process at which biological, chemical
or physical hazards can be controlled, reduced or eliminated.) - Source -

- Comprehensive analysis of Food products as per FSSAI guidelines

- Regular food quality and safety QA assessments based on FSSAI Schedule 4 requirements

(FSSAI has 5 Parts of requirements - Part 4 being: General hygienic and sanitary
practices to be followed by food business operators applying for license-
Slaughter house and meat processing) - Source -
https://www.fssai.gov.in/cms/hygiene-requirements.php
 2. Robust Integrated Supply Chain:

- An Integrated Supply Chain of Cold Trucks maintaining and delivering raw materials across
all major locations such as Kolkata, Mumbai, Bengaluru, etc
- Well adapted to Indian conditions with time and experience; well-equipped to deal with
geographic and demand expansion.

3. Human resource management Driving Growth:

- Pre-defined growth path for every Team Member.

- Reward & Recognition with Variable Incentives bringing motivation.
- Guest Delight Manager (Restaurant Manager) is treated as CEO of the Restaurant
- Whistle Blower institutionised at every restaurant/office

4. Investments in technology:

- Customer Level: Customer Relationship Management (CRM) GPS enabled deliver vehicles
– to track vehicle movement.

- Restaurant Level: OLO/mobile app /Voice ordering – for ease of ordering

LMS – Learning management System – non-trainer-based learning at restaurants.

- Supply Chain Level: Oracle Transport management – Optimizes route/ load efficiencies for
supplies from commissary to stores.

- Organisational Level: Biometric device – tracking of employee attendance, helps improving

productivity.

5. Continuous Innovation:
- Product Innovation: Pizza Mania Extremes, Burger Pizza, Range of Coffees, DunkyDoos
- Design Innovation: Open Kitchen Design, Flexible Seating

6. Robust Corporate Government Mechanism:

- Composition of Board with Professional Acumen
- Institutionalised Whistle Blower Mechanism
- Robust Audit and Review Mechanism
- Robust Audit and Review Mechanism

Finance & growth

In spite of lockdown company's income reached to 84.4% as compared to last year. but how
it's possible because of their unique position in market, their marketing strategies they are
able to survive in the market. Jubilant FoodWorks posted a standalone net profit of 116 crore
for quarter ended 31st march, up by 113% compared to 104.3 crore in previous quarter.
Standalone revenue grew 12.9% to 1157.9 crore. company has 2 strong brands in its portfolio
domino’s pizza and Dunkin donuts addressing different food market segments. Domino’s
pizza drives jubilant FoodWorks 395% net profit jump in q4 Dunkin donuts drives Jubilant
FoodWorks net profit 46.2 % jump in q4.

“Our revenue from operations stood at ₹32,689 million.

EBITDA came to ₹7,666 million at 23.5% of revenue, up
by 88 bps y-o-y. Profit After Tax stood at ₹2,337 million
at 7.1% of revenue.” – Shyam S. Bhartia, Chairman &
Director

USP (Unique Selling Proposition)

(What you have that competitor don't). They have 30000+ brand ambassadors to deliver
value to customer so that customer get to know their brands in better way and can have
emotional connect with their brands.
DOMINOS-Fresh, hot pizza delivered in 30 minutes or less, guaranteed.” It did not promise
high quality or low price, just fast delivery
DUNKIN DONUTS - Dunkin' Donuts value proposition promise to offer fresh food, fast and to
offer more choices, served quickly in a quality way. That means lots of innovative new
products such as iced coffee, breakfast sandwiches, smoothies, gourmet cookies and Dunkin
Dawgs, served fresher and faster than ever before
HONGS KITCHEN - Hong's Kitchen's lip-smacking Chinese menu offers dishes ranging from the
very savoury Incredibles @ Rs. 99 range (from Chinese starters to main course) to the
flavour-fest of Chef's Specials. Choose from the yummy Street Style Chowmein, the mouth-
watering momos, the oh-so-creamy Molten Cheese Spring Rolls and the delectable Fiery
Orange Chicken. Pro tip: Always leave some space for our crown jewel Dessert, the Choco
Bao!

Brands Acquired
Domino’s
Jubilant FoodWorks Limited holds the master franchise for Domino's
Pizza in India, Nepal, Sri Lanka and Bangladesh, Domino’s is known for their best services.
Domino’s, the pizza company in India, constantly develop products that suit the tastes of
consumers.

Dunkin’ Donuts
Jubilant FoodWorks holds the master franchise for Dunkin' Donuts in India, Bangladesh,
Nepal and Bhutan
Dunkin’ Donuts, a subsidiary of Dunkin’ Brands, is the world’s leading baked goods and
coffee chain. JFL launched the first Dunkin’ restaurant in Delhi.

Hong’s Kitchen
JFL entered into Chinese cuisine with a homegrown brand - ‘Hong’s Kitchen’ and launched
first restaurant in Gurugram. It serves authentic Chinese delicacies like noodles and gravies
along with delicious starters range and beverages.

ChefBoss
JFL Started into the FMCG segment with the launch of ready-to-cook (RTC) range of
products under the brand - ‘ChefBoss’. The ‘ChefBoss’ range of sauces, gravies and pastes
includes eight different products across two types of cuisines (Indian and Chinese).

Ekdum!
JFL announced the launch of Biryani, Curries under the brand - Ekdum! in an attempt to
establish a presence in the Indian cuisine segment. The menu offerings are multiple biryanis,
starters, curries, breads, bowl meals, desserts and beverages.

POPEYES
JFL announced signing of Master Franchise and Development Agreement (MFDA) with PLK
APAC Pvt. Ltd., subsidiary of Restaurant Brands International Inc. (RBI), to own and
operate Popeyes® stores in India, Bangladesh, Nepal and Bhutan. Popeyes®. The Popeyes®
brand distinguishes itself with a unique new style menu featuring spicy chicken, chicken
tenders and other regional items.
  Jubilant FoodWorks Ltd has entered into a share purchase agreement
with Hashtag Loyalty Pvt. Ltd to acquire a 35% stake in the online food
ordering platform

 Domino's Pizza's parent company Jubilant FoodWorks acquired a 25.02%

stake in dietary products and nutritional supplement maker Well-versed
Health, the acquirer stated in a regulatory filing with the Bombay Stock
Exchange.

 Delhi NCR based food services company Jubilant FoodWorks is acquiring

35% stake in customer relationship management (CRM) and automation
start up Hashtag Loyalty for INR 24.75 Cr.

Promotion strategy of Jubilant

FoodWorks
Promotion strategy of dominos
Online marketing ads – Dominos do a lot for promotion through social media like
Facebook, Instagram and also do a lot of promotion on google ads and on different websites
to attract various customers.
Influencer marketing- Nowadays influencer marketing is more demanding like every
company is using influencer marketing for their promotion. So, dominos also collabs with
various influencer so that they can easily promote their products.
Email/SMS- Dominos send a lot of email and SMS to their customers to make them aware
about their products and about their new discount offers.
Offline ads- Dominos runs various advertisement on billboards, on poster so that they can
easily attract their customers.
Social Media Hashtag Campaign- Using hashtag in your post on social media is good but
running your own hashtag campaign is great. So, dominos use this marketing strategy so that
they can easily connect with their customers through hashtag.

Promotion strategy of Dunkin donuts

There are mainly three strategies used by Dunkin donuts: -
Dunkin donuts do a lot of advertisement through print media like through newspapers,
magazines.
And they also do a lot of advertisement on their coffee mug which was named as Dunkin
donuts coffee mug.
And they also do promotion on social media like on Facebook, Instagram to make their
customers aware about their products.

BUSINESS ETHICS POLICY

Conflict Of Interest
A conflict of interest can arise whenever an Employee acts in a manner, or participates in any
transaction, relationship or situation, which conflicts with or may appear to conflict with the
best interests of the Company. An employee shall always act in the interest of the company
and ensure that any business or personal association which he /she may have does not involve
a conflict of interest with the operations of the company and his / her role therein. An
employee shall not engage in any business, relationship or activity which might conflict with
the interest of the company.

Business Records and Communication

Employees shall create or maintain records, reports, and any other information and ensure the
integrity and accuracy of such records, reports, and information, and shall never create a false
or misleading record or report. All Employees must legibly record information accurately and
completely, and ensure preservation in accordance with Company’s requirements. Employees
must also ensure that all reports to regulatory authorities are full, fair, accurate, timely and
understandable and that the true nature of any transaction is never falsified or distorted. This
applies to written and electronic documents and communications of all kinds, including but
not limited to texts, e-mail and “informal” notes or memoranda.

External Communication with Media and Investors

To maintain and retain the Company’s reputation and to ensure that information to media and
investors is accurate and properly presented, only the Chairman or Co-Chairman and
Managing Director or the designated representatives such as CEO or Group CFO / CFO of
the respective entity would give interviews or make statements to media / investors. Any
Employee receiving requests for information from media, investors, analysts, brokers, or any
external agency should promptly refer all such requests to Corporate Communications.

Prohibition of Insider Trading

The Company has formulated a Code of Conduct for Prevention of Insider Trading, which
needs to be complied with by certain employees, known as designated persons.
“Designated Persons” mean:

 Promoters, Directors, Key Managerial Personnel (KMP), Chief Executive Officers

(‘CEOs’) and employees up to two levels below CEOs of the Company:
  All employees of the Company of the rank of senior vice president and above,
business heads, functional heads, plant heads and plant finance heads of the
Company;
 All employees of the Company in finance & accounts, secretarial, information
technology, legal, taxation, management assurance, corporate communications,
investor relations, financial planning & analysis and strategy & business development
of the rank of manager and above located at the corporate office of the Company;

Dealings at the Workplace

Every Employee has a responsibility to make decisions on their merit in consultation with the
appropriate authority within the Company as per the delegation of authority. Employees must
not use their official position to influence any person to enter into financial or other
arrangements with them or with anyone else. Employees must not abuse their official position
to obtain a benefit or business opportunity for self or for someone else, in financial or some
other form. No Employee shall compete with the Company, and/or its subsidiaries.

WORK CULTURE
Work culture is a collection of attitudes, beliefs and behaviours that make up the regular
atmosphere in a work environment.

With employee friendly policies to Fun@Work activities, at JFL, they do everything possible
to make their associates feel at home.

With a nurturing culture at the core, in JFL employees are given enough empowerment &
accountability in their work to help them grow up the ladder.

It also provides their employees-

 Friendly work environment.
 Flexible timings.
 Great learning opportunity.
 Amazing project opportunities.

SWOT Analysis
The term SWOT stands for Strength, Weakness, Opportunities and Threats. It is a
strategic management technique to help a person or an organization identify its strengths,
weakness and available opportunities and threats related to a business. In context of Jubilant
food works company,
Its Strengths are:

Popular brand value and brand loyalty

Both the brands of the company i.e., Dominos and Dunkin Donuts share a very high
brand value and name and at the same time have a huge base of loyal customers. And
this is all because of great marketing and advertisement strategies used by the
company.

High number of product offering:

Both the brand offers high number of offerings to their customers in terms of variety
of food and beverage options, different combo offers, different items for different
price segment, shakes and smoothies and deserts also. By this they capture almost all
the segments of consumers in the market.

The Weakness of the company are as follows:

High in fat and calorie food:

One of the weaknesses of the company is that the most of the offerings by both of the
brands of the company are high in fat and calorie and also comes under the junk food
category.

High staff turnover ratio:

Another weakness of the company is that it is having high staff turnover ratio and the
reason for the high staff turnover ratio is lack of training and development of the staff
and also low incentives provided by the company to their employees.

The opportunities of the company:

New healthier food options:

Now a days, consumers are becoming more and more health conscious and have
started demanding healthier food options which are low in fat and calories. So, the
company have an opportunity to serve this need of the consumer market and
strengthen its base in the market.

Online and mobile ordering:

In today’s time online food delivering and cloud kitchen are very popular and are in
huge demand, especially after COVID 19 pandemic. And therefore, online and mobile
ordering should be further strengthened by the company so as to ensure more deeper
market penetration.
Threats of the company:

Competition:
Each and every business in the market have competitors and Jubilant food works too
have some. The main competitors of the company are Pizza Hut, KFC, Made Over
Donuts etc.

Changing consumer Habits:

As we have discussed earlier also in the discussion that, consumer habits are changing
very rapidly towards healthier food choices and options, especially after COVID 19
pandemic and now consumers are becoming more health conscious and prefer healthy
food options mostly.

PESTEL Analysis

What are Political Factors in PESTEL Analysis? Political factors are related to the
level of intervention and nature of intervention of the local and national
government in the business and economic environment.

Political Factors that Impact Jubilant FoodWorks

- Taxation policies – Over the last two decades Jubilant FoodWorks has benefitted from
lower taxation policies throughout the western hemisphere. It has resulted in high profits and
increasing spending in the research and development. The increasing inequality in India can
lead to changes in the taxation policies. Secondly local governments are also looking into
Restaurants specific taxation policies to contain the carbon footprint of the Services sector.

- Changing policies with new government – Studying the current trends it seems that there
can be a transition of government in India in next election. Jubilant FoodWorks has to
prepare for this eventuality as it will lead to change in governance priorities of Services
sector. The India new government policies can improve the investment sentiment in the
Services sector.

- Political stability in the existing markets – Jubilant FoodWorks operates in numerous

countries so it has to make policies each country based on the Restaurants industry specific
requirements. Given the recent rise in populism across the world I believe that India can see
similar trends and may lead to greater instability in the India market.

-Regulatory Policies - Government of India has come under increasing global pressures to
adhere to World Trade Organization’s regulations on Restaurants industry.
 What are Economic Factors? Economic factors include – taxation rate, consumer
disposable income, labour, market conditions, inflation rate, exchange rate,
economic performance of country, the stage of economy of country, interest rate
etc.

Economic Factors that Impact Jubilant FoodWorks

- Efficiency of financial markets in India / consumer spending – Jubilant FoodWorks
can access vibrant financial markets and easy availability of liquidity in the equity market of
India to expand further globally. The performance of Jubilant FoodWorks in India is closely
correlated to the economic performance of the India's economy. The growth in last two
decades is built upon increasing globalization and utilizing local resources to cater to global
markets

- Increasing liberalization of trade policy of India can help Jubilant FoodWorks to invest
further into the regions which are so far off limits to the firm.

- Skill level of workforce in India market – The skill level of human resources in India is
moderate to high in the Services sector. Jubilant FoodWorks can leverage it to not only
improve services in India but also can leverage the skilled workforce to create global
opportunities.

- Inflation rate – The easy liquidity in the market posts the great recession of 2018 will lead
to increasing inflation in the India economy.

- Exchange rate – The volatile exchange rate of India can impact Jubilant FoodWorks
investment plans not only in the short term but also in the long run.

What are Social Factors? Each society and culture have its own way of doing
business. Social factors include – demographics, traditions, health & safety
attitudes, culture, attitude towards certain products and services, gender roles,
societal roles and norms, acceptance of entrepreneurial spirit, and leisure
interests.

Social Factors that Impact Jubilant FoodWorks

- Social norms – There is an increasing trend of income inequality in India. This has altered
the power structure that has been persistent in the society for over last 6-7 decades.

The education level is high in India especially in the Jubilant FoodWorks sector.

By and large over the last decade and half the wider population in getting access to essential
services in India. This has been a result of increasing investment in public services.
- Migration – The broader attitude towards migration is negative in India. This can impact
Jubilant FoodWorks ability to bring international leaders and managers to manage operations
in the country.

- Media outlets play a critical role in influencing the public opinion India. Both traditional
media and social media are rapidly growing in India. Jubilant FoodWorks can leverage this
trend to better market and position its products.

- Attitude towards health and safety – With increasing liberalization the attitude towards
health and safety are getting lax. Jubilant FoodWorks needs to stay away from these attitudes
as the cost of failure is too high in India.

What are Technological Factors in PESTEL Analysis? Some of the technological

factors are – innovation in customer services, supply chain disruption because of
technology, innovation in product offerings, access to greater information,
population access to technology, rate of technology driven change etc.

Technological Factors that Impact Jubilant FoodWorks

- Developments and dissemination of mobile technology has transformed customer
expectations in the Services sector. Jubilant FoodWorks has to not only meet and manage
these expectations but also have to innovate to stay ahead of the competition.

- Maturity of technology – The technology in the Restaurants sector is still not reached
maturity and most players are vying for new innovations that can enable them to garner
higher market share in India.

- Technological innovation is fast disrupting the supply chain as it is providing greater

access to information to not only supply chain partners but also to wider players in the
services industry.

- Intellectual property rights and patents protection – If India have higher safeguards for
IPR and other intellectual property rights then more and more players are likely to invest into
research and development.

- Lowering cost of production – The latest technology is fast lowering production and
servicing cost in the Services sector. Jubilant FoodWorks has to restructure its supply chain
to bring in more flexibility to meet both customer needs and cost structures.

- Technology transfer and licensing issues for Jubilant FoodWorks – In the Services
sector there is no strong culture of technology transfer and companies often are reluctant to
transfer or license technologies for the fear of creating competitors out of collaborators.

What are Environmental Factors in PESTEL Analysis? Some of the environmental

factors are – safe disposal of hazardous material, safe water treatment,
 insurance policies, limiting carbon footprints, climate change, laws regulating
pollution, safe waste disposal, increasing focus on sustainability etc.

Environmental Factors that Impact Jubilant FoodWorks

- Customer awareness about environmental factors.

- Regular scrutiny / observation by environmental agencies is also adding to the cost of

operations of the Jubilant FoodWorks.

- Environmental norms are also altering the priorities of product innovation. In many cases
products are designed based on environmental standards and expectations rather than catering
to traditional value propositions.

- Waste management especially for units close to the urban cities has taken increasing
importance for players such as Jubilant FoodWorks. India government has come up with
strict norms for waste management in the urban areas.

- Extreme weather is also adding to the cost of operations of the Jubilant FoodWorks as it
has to invest in making its supply chain more flexible.

- Renewable technology is also another interesting area for Jubilant FoodWorks. It can
leverage the trends in this sector. India is providing subsidies to invest in the renewable
sector.

What are Legal Factors in PESTEL Analysis? Legal aspects - data protection laws,
intellectual property rights protection, time taken to deliver justice, copyrights
law, biasedness toward home players, system of justice, discrimination laws etc.

Legal Factors that Impact Jubilant FoodWorks

- Time take for business cases in court – some countries even though follow international
norms but the time for resolution often run-in years. Jubilant FoodWorks has to carefully
consider average time of specific cases before entering an international market.

- Employment law in the India and how they are impacting the business model of the
Restaurants. Can these conditions be replicated or bettered in international market?

- Health and safety norms in the India and what Jubilant FoodWorks need to do to meet
those norms and what will be the cost of meeting those norms.

- Data protection laws – Over the last decade data protection has emerged as critical part of
not only privacy issues but also intellectual property rights. Jubilant FoodWorks has to
consider whether India have a robust mechanism to protect against data breaches or not.
- Business Laws – The business laws procedure that India follows. Are these norms
consistent with international institutions such as World Trading Organization, European
Union etc.

- Legal protection of intellectual property, patents, copyrights, and other IPR rights in
India. How Jubilant FoodWorks will be impacted if there are not enough protection.

Impact of COVID-19
Our operating revenue for the year stood at ₹38,858 million, up by 10.1% over FY 2019. Our
EBITDA stood at ₹8,771 million. We have focused on realising greater productivity
throughout the year to help offset the impact our margins have suffered as a result of inflation
in dairy prices and the year-end COVID-19 crisis. Our Like-for-Like (LFL) sales growth
stood at 4.5% and Same Store Growth (SSG) at 3.2%. Overall, 130 restaurants were opened.
Among these, 123 were Domino’s Pizza, 4 were Dunkin’ Donuts and 3 were Hong’s Kitchen
restaurants. We also launched a brand-new campaign ‘Dil, Dosti, Domino’s’, crafted to
acknowledge the change in lifestyle of the new-age Indian consumer. It celebrates the role of
friendship as the only one truly essential element of our relationships. It struck a chord with
our audiences instantly across various platforms.

COVID-19 – RESPONSE PLAN

Zero Contact Delivery and Zero Contact Dine-in Domino’s Pizza

The market leader in the chained pizza segment in India, introduced Zero Contact Delivery
across its restaurants. This service enables customers to receive their order without coming in
contact with the delivery person, ensuring safety of both customers and the delivery person.
The Company rolled out an aggressive campaign in digital and thereafter in TVC that helped
gain customer confidence. Zero Contact Dine-in will be launched as and when dine-in is
allowed in the restaurants. This will enable consumers to maintain social distance, order
pizzas in dine-in, and stay and consummate the transaction. All dine-in restaurants have been
redesigned and the layout has been changed completely to ensure six feet of separation
between tables. Floor stickers have also been placed at six-feet distance to allow customers to
maintain social distance.
Strengthened Hygiene and Sanitation Protocols
Key initiatives taken by the Company towards strengthening the hygiene and sanitation
protocols: • All team members, including safe delivery persons, housekeeping and security
staff, are required to undergo a mandatory health screening as per the Company’s policy •
Temperature screening of each team member is carried out every day and online record is
maintained • All team members are following a 20-second hand wash and sanitation protocol
every hour • Hand sanitisers are positioned at every touchpoint, including in the dine-in area •
Use of gloves while making food/pizzas and packing the order; all team members are
mandated to wear face masks and disposable gloves.

Future goals
Jubilant management believes that QSR demand in the country will increase rapidly
given the possibility of closure of 30-35% of conventional restaurants. This has prompted the
company to raise the store addition target for FY22 to 150-175 from earlier 135 since it
expects improved demand for larger, trusted brands. It also said that the domestic market has
a capacity to absorb 3,000 Domino’s outlets compared with the earlier estimate of 1800-2000
outlets -- it currently operates 1,380 outlets.
In the first quarter of FY22, it added 29 stores. Of that, 20 were Domino’s while the
remaining were Dunkin Donuts, Ekdum Biryani and Hong Kitchen. A greater focus on
delivery in the case of new stores will reduce the extent of initial investment. The company
has increased manpower in data science and artificial intelligence to become a foodtech
giant.

In the June quarter, the company’s revenue more than doubled on a lower year-ago base. The
operating profit before interest, depreciation, and amortisation (EBITDA) jumped to Rs 210
crore from Rs 24.1 a year ago. The EBIDTA margin expanded to 24% from 6% in the year-
ago quarter. It was also higher than the analysts’ estimate of 21%. In the near term, the
management does not expect rental cost increase given the supply glut amid the pandemic.
Analysts expect the company to deliver 55-60% earnings growth for the next two years.
Its stock trades at 60 times estimated FY23 earnings. Given its superior business model, the
management has been able to deliver more than 20% return on capital consistently for the
past several years except in FY21. With a cash balance of nearly Rs 600 crore, the company
looks well in position to take advantage of future opportunities.

Conclusion
Business model
 Relatively inelasticity of demand advantage.
When a big change in price leads to small change in quantity demanded,

Fast food industry will continue

Fast food industry is becoming more global and it seems that it will continue and
expected to generally stay the same over the next few years.

Future growth
Future growth depends on how well retailers are able to innovate, provide value for
money, and keep up and surpass competitors.

“Unbox secrets and happiness with dominos”

#Dildostidominos