Shyam and Hari Bhartia promoted Jubilant Foodworks Ltd is working on a cluster approach for its various businesses. With its flagship Domino’s Pizza touching the 500-store mark, the company is evaluating the scope for expanding its business in the quick service restaurant and retail sectors, among others.

The ‘pharma brothers’, who control 70 per cent in the pizza home delivery segment, said they would have a similar approach for another popular American brand Dunkin’ Donuts, with which they entered into a tie-up earlier this year.

“We want to bring scale to our business as it would bring advantages of supply chain and innovations. Our business would be about volume. We have put together efficient processes, talented people and robust machinery which has helped us achieve growth,” Shyam S. Bhartia, Chairman, and Hari S. Bhartia, Co-Chairman, Jubilant Foodworks, said.

Jubilant plans to add 100 stores in 2012-13 at an estimated investment of Rs 150 crore. It also plans to open 5-6 Domino’s Pizza stores in Sri Lanka this fiscal.

Eyeing similar growth in its Dunkin’ Donuts business, Jubilant said it plans to open 10 Dunkin’ Donuts outlets in India this fiscal. There are three Dunkin’ Donuts stores now.

Queried about their penchant for American QSR brands, Hari Bhartia said, “The American system of doing business is good. Also, pizza is a global food and the youth in India want to try out newer food products”. While Jubilant manages the dough, the commissaries and marketing, Domino’s has invested in the backend and supply chain.

India’s QSR market was estimated at around $1.4 billion in 2011, growing at 30-40 per cent CAGR.

Asked if the slowdown was taking a bite out of the business, Hari Bhartia said there were “early signs” of slowdown in consumer spending and new customer acquisitions. “At Domino’s, we concentrate on affordability. We have been adding products in the affordable category. Also the QSR market is under penetrated,” Shyam Bhartia added.

Jubilant Foodworks reported same-store sales of 22.3 per cent in April-June, lower than the 26.2 per cent growth in Jan-March.

Richard Allison, Executive Vice-President, Domino’s Pizza International, said, “The growth of Domino’s India has set new record for us globally, which will certainly spur other countries to emulate India story”.

India is one of the most successful global markets for Domino’s, with eight out of the top 10 Domino’s restaurants by volume (number of pizzas sold) being located in India.

On its hypermarket business Total, the brothers said they were concentrating on city-specific approach. “We believe in city-saturation before moving on to other destinations”. Total has five stores in Karnataka.

Bindu.menon@thehindu.co.in

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