Domino's has launched a fresh marketing campaign to boost pizza sales and is looking forward to the “the big days”, Jubilant FoodWorks, MD & CEO Sameer Khetarpal has said.
Jubilant FoodWorks is the master franchisee of Domino's Pizza and Dunkin’ Donuts.
In an interview to CNBC-TV18, Khetarpal talked about the dynamics of India’s pizza market, the company's performance and the demand scenario.
Whetting pizza appetite
Looking forward to the holiday season, Khetarpal said, “We are gearing up for the 'big days’, which is from December 24 to January 1.”
In response to a decline in pizza appetite compared to other snacks, Jubilant Foodworks' has launched a new campaign, "This happens only with pizza".
Khetarpal said there has been a positive shift in the third quarter after a sluggish start of the year for the Quick Service Restaurant (QSR) industry.
He identified distinct consumer behaviours, the growth of “significant sales days” and increased average transaction values that offset the overall inclination towards conservation.
He stressed on the significance of the year-end "material needle movers" in determining the company's on-year growth in the second half of the year.
Slicing the industry dynamic
Khetarpal said the Indian food service market is a $50-billion industry, with pizza as the largest category, approaching $1 billion.
The strategy for pizza sales involves securing the majority of orders during special occasions.
Also read: Domino’s cuts rates of large pizzas by 50% to compete with smaller rivals
Acknowledging heightened competition in QSR pizza category, Khetarpal, however, is confident of Jubilant’s performance. "All our indicators tell us that we are gaining share," he said, attributing the claim to internal research and regional store performance data.
Khetarpal isn’t too worried about the growing competition from new entrants. Despite increased competition, there was potential in the market, Khetarpal said, citing lower pizza consumption in India compared to the US.
On Domino's Pizza Eurasia, Khetarpal said the plan was to fully own the company, delist from the London Stock Exchange and to take it private.
Market play
In terms of margins, Khetarpal said that Jubilant reduced discounts at Domino's and leveraged data and technology to target discount-seeking and convenience-seeking consumers more effectively.
This shift had contributed to expanding gross margins in the last two quarters.
On December 20, the Jubilant FoodWorks stock closed at Rs 560.55 on NSE, down 0.78 percent from the previous day.
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