Jubilant FoodWorks to pump Rs. 100 crore in Domino's Pizza
Jubilant FoodWorks Ltd (JFL), which operates Domino's Pizza and Dunkin' Donuts chains in India, will invest around Rs 100 crore over the next 12 months to relaunch its pizza offerings in the country.
The company will invest major chuck of this sum in product upgrade and rest on marketing campaigns.
"We will invest nearly Rs 100 crore behind the upgrade.
We will offer superior products at the same price points. We believe with this product upgrade, we will expand Domino's franchise," JFL CEO Pratik Pota told reporters here.
The company said though it has improved the pizza, there will not be any price increase for the customers.
"We will absorb this cost from benefit of input tax credit under GST and cost efficiency," he said.
JFL, which operates over 1,120 Domino's Pizza outlets across the country, plans to add another 40-50 outlets this year.
When asked if the company plans to shut Domino's Pizza stores he said: "Our focus is on store profitability. However, we don't expect to close many stores. At present, there are only a handful of outlets that are not profitable".
Last month, JFL reported 25.53 per cent rise in June quarter net profit to Rs 23.84 crore helped by increase in same store sales growth of Domino's Pizza.
Same store growth refers to year-over-year growth in sales for restaurants in operation for 2 whole years.
JFL had shut 20 Dunkin' Donuts stores in the previous fiscal, of which 13 were shut in the last quarter.