India based Jubilant Foodworks Ltd, which operates the biggest American pizza chain Dominos and Dunkin Donuts will pump in Rs 100 crore to revive the food products and packaging -- marking it to be the biggest upgrade for Domino's in India since the brand entered the Indian market in 1996.
Jubilant said it will expand about 50 stores this year and will go for a new marketing campaign. However, the company is not looking for any uptick in the food prices, Mint reported.
"We are not looking at any price increases for Domino's this year. We will pass on GST benefits to consumers," said Partik Pota Chief Executive Officer at Jubilant Foodworks in an interview to CNBC-TV18.
The company early this year said it was aiming to work out new strategies that will drive sustainability and profitable growth. To back the target, the Noida-based company wanted to cut costs, perk up product offering, provide better customer services by upgrading existing technologies and investing on new ones. Jubilant's shares jumped 5.4 percent to close at Rs 1,333.25 apiece on BSE on Tuesday.
In the past few quarters, the company closed five Domino outlets and added 13 new ones to ensure profitability. Pota also added that they will continue to reduce inefficiencies and taper off loss-incurring outlets.
The upgraded strategies pushed Jubilant FoodWorks to grow 6.5 percent in same-store-sales the quarter that ended on 30 June 2017. That was highest in two years. Same-store sales measure the revenue growth at the outlets that have been open for about a year.
Not just Jubilant FoodWorks, but the Indian food industry in general has shown growth. Other companies with nippy service restaurant chains in India have also grown during the April-June quarter.
The over all Indian food industry is expected to grow at a rate of 11 percent to $65.4 billion by 2018.
