Cost factor is not a disadvantage for us

Written by Neha Pal | Neha Pal | Updated: Mar 27 2010, 04:01am hrs
India is one of the fastest growing market for fast food products. Ajay Kaul, chief executive officer, Jubilant FoodWorks Ltd, the master franchisee for Dominos Pizza, shared with FEs Neha Pal the companys plans to cross the 500 outlet-mark in the next three years. Excerpts:

Do you see Dominos Pizza restricted to only the upwardly mobile because of cost factor

No. We have launched a pizza range for only Rs 35. It has helped us establish and popular our brand with the middle and even the lower-income group. This has created more customers for us. We have opened Dominos outlets in 25 tier II and tier III cities, Indore, Jammu, and Haridwar.

How much does the Indian market contribute to the overall revenues of Dominos

There are around 300 Dominos stores in India and 9,000 across the world. Indias share to the overall revenue is 3.3%.

What are your investment plans for the country

We opened 60 stores in India last year and plan to open 65 outlets this year as well as the next year. We plan to invest Rs 50-55 crore, of which a major chunk will go for launch of new stores.

Are you planning to introduce pizzas that are calorie-free since people have become health conscious these days

Our product innovation team is continuously striving. So, we will continue to launch new products in the Indian market. We might think of introducing such kind of calorie-free pizzas in future as we go by customer preferences. However, Dominos has always been known for the kind of pizzas it makes and people have liked it that way.

What is the company's financial performance for the financial year 2009-10

The company expects to close the current financial year (ending March 2010) with a total sales turnover of Rs 420 crore and a profit after tax of Rs 32 crore.

How much do tier II and III cities contribute to the total revenue

Currently, 20-25% of our revenue comes from tier-II and tier III cities. In the next five years, we expect this number to increase substantially, as we will be opening many more stores across the country.