Here‘s what Goldman feels could work for Jubilant Foodworks

Moneycontrol NewsEven as Goldman Sachs had upgraded Jubilant Foodworks March 1 (2017), the stock did not catch much of investors’ attention as they seemed to be skeptical about the long-term return potential. The research firm, in a report, has highlighted the concerns they have raised on innovation in menu, employee productivity and pricing. While investors were concerned on limited menu innovation and downtime outside of lunch/dinner hours and loss of health-conscious customers, Goldman Sachs stresses on the opportunities within them. For instance, the Burger Pizza launch was a success and that the company could add more products to drive sales outside of meal hours. It could also target customers who are not keen on pizzas, it said in its report. The research firm also sees opportunity to have healthier variants of products. On employee productivity, investors cited exploring technology to increase employee efficiency. The research firm feels automation of tasks could reduce employee intensity at stores. In addition, if sales can be increased beyond meal hours, this should lead to more effective use of employee time, Goldman Sachs said in a report. Meanwhile, investors feel pricing continues to be a concern for the urban mass. Goldman Sachs sees opportunity here by plugging price gaps in the existing menu and targeting higher urban mass customers.