Jubilant Foodworks, the company which operates Domino’s Pizza and Dunkin Donuts in India, reported (pdf) that online orders contributed around 57% of delivery sales for the quarter ended September 30, 2017 (Q2 FY18). This is up from a 43% 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 54%. 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 7.8 million at the end of Q2 FY18, as compared to 5 million in the same period last year. In the previous quarter, the company’s app downloads stood at 7.5 million. Currently, Jubilant Foodworks has a network of 1,125 Domino’s Pizza restaurants across 264 Indian cities.
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: last quarter there were 55 Dunkin Donuts restaurants across 15 cities, and in Q2 it is 52 across 13 cities . Also, 13 outlets were closed in Q4 FY17 (i.e post demonetization) while 9 other outlets were closed in the first quarter of FY18.
The company said its key focus for FY18 is to upgrade its online ordering platforms. Note that, both Dominos and Dunkin Donuts list their restaurants on food ordering apps like Swiggy and Zomato, and most of these apps charge a commission cut for each online order. Bringing users to their own app would help them reduce these costs.
Pratik Pota, CEO and Whole time Director, Jubilant FoodWorks Limited said in a statement that going forward, the company will continue to improved technology along with other key business strategies while bringing a “razor sharp focus on cost management”.
- Operating revenue: Rs 726.6 crore for Q2 FY18, up 9.2% YoY
- EBITDA: Rs. 10.2 crore, up by 59% YoY
- Profit after tax: Rs. 48.5 crore, up by 124.7% YoY