Pizza Hut Vs Dominos – Business Model – Strategy Comparison in India
January 17, 2012
Jubilant Foods master franchise of Dominos operates on a business model significantly different from that of its closest competitor Pizza Hut (part of Yum! Brands), which operates through at least
eight franchisees in India including Devyani and Dodsal. The key differences between the two business models are as shown below.
Franchisee rights – Exclusive rights for the whole country. [Dominos]
Shared with other franchisees [Pizza Hut]
Marketing strategy – Jubilant decides and gets it approved by Domino’s International.
Yum! provides significant support and Devyani executes it.
Interactions with Franchisor – Dominos International team visits once every 3-6months to evaluate business performance and strategy.
Yum! Brands has a separate office in India to manage marketing, real estate and other
operational parts of the business in India.
Vendor selection – Jubilant decides and gets it approved by Domino’s International.
Yum! decides and Devyani executes it.
Dough preparations – Prepared dough distributed from commissaries to stores
under controlled temperatures – third party network of cold storage vehicles are used
Pizza Hut Dough is prepared fresh in the store kitchens.
Beverages Coca Cola for Dominos and Pepsi for Pizza Hut.
Domino’s International has signed renewable agreements with Coca Cola for most countries around the world.
Yum! Brands business was owned by Pepsi Co until 1997 and now has a lifetime contract with Pepsi Co.
Real estate support for store openings – Jubilant’s in-house team manages and executes the entire process.
Yum! Brands’ real estate team carries out the process on behalf of their franchisees.
Can you think of Any other Difference in Business Model ? Do enlighten other readers here.