wordpress blog stats
Connect with us

Hi, what are you looking for?

69% of Domino’s online orders were made via mobile in Q1 FY18

We missed this earlier…Jubilant Foodworks, the company which operates Domino’s Pizza and Dunkin Donuts in India, reported (pdf) that online orders contributed around 51% of delivery sales for the quarter ended June, 2017 (Q1 FY18). This is up from a 44% online ordering share in the same quarter last year. The company added that more than half (69%) of the online orders were placed through the mobile app, and has been growing steadily. In the same quarter last year, mobile app orders accounted for 44%. Note that the online delivery sales are exclusively for Domino’s Pizza

The company also mentioned that the number of downloads of its mobile app stood at 7.5 million at the end of Q1 FY18, as compared to 4.4 million in the same period last year. In the previous quarter, the company’s app downloads stood at 6.4 million. Currently, Jubilant Foodworks has a network of 1,125 Domino’s Pizza restaurants across 264 Indian cities, and another 55 Dunkin Donuts restaurants across 15 cities.

On app updates and online ordering

During an analyst call (pdf), Hari S. Bhartia, Co-Chairman and MD of Jubilant said that the company is focusing on enhancing its app’s user experience by making it easier for customers to discover food items, mainly for selecting pizzas on its app. He added that Dominos app will invest more in upgrading technology stacks and deploy analytics to improve UI/UX. “We will be adding some more functionalities to our App in Q2,” he said.

Note that both Dominos and Dunkin Donuts list their restaurants on food ordering apps like Swiggy and Zomato. Both Swiggy and Zomato charge a commission cut for each online order. Bringing users to their own app would help them reduce these costs. The company said that it has increased its “resourcing in critical parts of the business such as Digital and IT, with people coming on board for areas like Retail Tech, Payment, Analytics, IT Infrastructure, etc.”

On digital media marketing

The company is facing trouble running its Dunkin Donuts segment, mostly because it’s a low margin business. It makes more money by selling combo packs i.e. doughnuts coupled with Coffee/Burger, etc, but not all walk-in customers opt for a combo. This has subsequently led to a number of shutdowns on the Dunkin Donuts segment: 13 outlets were closed in Q4 FY17 (i.e post demonetization) while 9 other outlets were closed in the current quarter.

To tackle this, Jubilant is focusing on digital marketing initiatives which are cheaper than offline advertising. “We are looking at less mass media (advertising), but much more store level marketing and use of digital media which is obviously lower cost”, Pratik Pota CEO of Jubilant said during the analyst call for Q1FY17.

Financials

  • Operating revenue: Rs 678.8 crore for Q1 FY18, up 11.5% YoY
  • EBITDA: Rs. 79.6 crore, up by 38% YoY
  • Profit after tax: Rs.23.8 crore, up by 25.5% YoY

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

News

By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...

News

By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...

News

By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...

News

This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like

News

Airtel and Reliance Jio now account for as much as 65% of India’s total Mobile connections. BSNL has just 10%. While Reliance Jio and...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ