How did Dominos🍕 become so big in India and what are Jubilant Foodworks’ future plans? Should you invest in it?
A thread🧵
A thread🧵
Jubilant Foodworks is definitely India’s biggest QSR (Quick Service Restaurant) and probably the only successful one at this scale.
It’s the company behind Dominos in India.
Since 1996 Dominos has been growing in India, and became the crown jewel for Jubilant.
It’s the company behind Dominos in India.
Since 1996 Dominos has been growing in India, and became the crown jewel for Jubilant.
Now Jubilant has new plans for the future:
It doesn’t just want to rule in one segment, it wants the whole pie (or pizza🤔)
They know what’s happening:
It doesn’t just want to rule in one segment, it wants the whole pie (or pizza🤔)
They know what’s happening:
With higher disposable income, and younger population totally adept with fast food, QSR is going to grow like crazy in the next 10-20 years.
Jubilant has been the leader in this revolution, they have the data and they can do tons of new stuff with it.
Jubilant has been the leader in this revolution, they have the data and they can do tons of new stuff with it.
Just for your context: QSR in India is growing at around 17% CAGR and it’s supposed to become a $827 Billion industry in the next 5 years.
Dananani oo Pizza Aaaya Free...rings a bell? This was a brilliant strategy by Dominos.
They had this “order delivered in 30 mins or it’s free strategy”.
It played on your instant craving and gave you a particular limit in which that craving will be fulfilled.
They had this “order delivered in 30 mins or it’s free strategy”.
It played on your instant craving and gave you a particular limit in which that craving will be fulfilled.
You know that you can depend on them, you know that the product is standardised and it will be the exact thing you want.
And if they ever delayed it, it becomes free!
And if they ever delayed it, it becomes free!
Dominos has always focused on delivery. People love to dine in too, but if you’ve noticed, dining facilities at Dominos are quite substandard.
They don’t concentrate too much on it.
Even in stores you’ll be served in the same delivery box.
They don’t concentrate too much on it.
Even in stores you’ll be served in the same delivery box.
This model has worked! It’s a perfect product for India and it’s cost effective to run.
Small stores are usually built in areas with huge traffic, higher disposable income and cheaper complexes.
These are mostly for delivery and pickup.
Small stores are usually built in areas with huge traffic, higher disposable income and cheaper complexes.
These are mostly for delivery and pickup.
The costs are kept really low and the demand is fulfilled fast in neighbourhoods that can actually pay well over the long term.
But that’s what we feel staying in bigger cities. In smaller cities with less dining-out options, Dominos is often the go to “family dining joint”.
The stores are bigger there to accommodate this demand.
The stores are bigger there to accommodate this demand.
Jubilant has been really good at understanding the Indian customer and tweaking it’s solution for him/her perfectly. Using what they’ve gained, they are building their next leg of growth...
Hong’s Kitchen is Jubilant’s first in-house home grown brand. It has been operational since 2019.
Chinese cuisine is the second most consumed cuisine in India and yet there is nothing between the fine dine, and the street food.
Chinese cuisine is the second most consumed cuisine in India and yet there is nothing between the fine dine, and the street food.
Hong’s Kitchen is meant to cater to that middle customer. The market for this segment is huge!!
Hong’s Kitchen is dining focused too. So, this could be something very new and exciting for them.
Hong’s Kitchen is dining focused too. So, this could be something very new and exciting for them.
EKDUM Biryani is another in-house brand. Biryani is a product which is highly consumed in India
We don’t really know about Jubilant’s progress in this segment since it’s quite new, but we’re covering Biryani by Kilo in a thread soon which will give you an idea about this segment
We don’t really know about Jubilant’s progress in this segment since it’s quite new, but we’re covering Biryani by Kilo in a thread soon which will give you an idea about this segment
Popeyes could become Jubilant’s next Dominos.
The product is really good and well suited for the Indian market. We love fried chicken and some say Popeyes is even better than KFC.
A thread is coming up exclusively on Popeyes...
The product is really good and well suited for the Indian market. We love fried chicken and some say Popeyes is even better than KFC.
A thread is coming up exclusively on Popeyes...
The company has become very big...almost like a launching pad for foreign brands into the Indian markets.
Still this isn’t a stock tip, do your own due diligence before making any investment decision, this is just for educational purposes.
Still this isn’t a stock tip, do your own due diligence before making any investment decision, this is just for educational purposes.
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