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Domino’s India has cash reserves and a delivery strategy prepared for COVID-19, but cuts cost on rent and employees

Jubilant Foodworks, which runs Domino's Pizza restaurants in India, was uniquely prepared among for the pandemic. For one, Domino's is among India's most successful fast food brands, with over 1,000 stores in the country. Second, it has always been delivery-focused, meaning that relatively speaking, it stood to lose less from restaurants shutting down dine-in — even before the pandemic, Domino's riders in India started delivering wearing plastic gloves and masks. In most markets, food delivery has been allowed since the earliest days of the lockdown, meaning that only stores in malls, which remain shut, have been impacted completely. Two-thirds of Domino's sales in India are from delivery and takeout orders. In spite of this, the company, which told investors that it actually expects to bounce back stronger than it was pre-lockdown, is taking extraordinary cost cutting measures. In several markets, it is invoking force majeure clauses in its rent agreements, and downgrading permanent employees to part-time workers. Jubilant CEO Pratik Pota said, "Unexpected as this event was, I believe that our strategy for growth rolled out for growth in 2017, and its disciplined execution since then have in a way almost prepared us for this crisis. Our strong balance sheet, our towering strength in delivery, our continued investment in digital and technology and our lovemark brands, all place us in a unique position of strength, in which not only can they weather the storm, but actually come out from this even stronger." 83% of delivery area is covered; North recovering faster: "You would…

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