How Does Domino’s Manage Largest Commissary in India ?

Dominos SupplyChain MumbaiWe visited Dominos’s 72,000 sq. ft. commissary located close to Mumbai to understand the competitive advantage the company derives from its supply chain. Note that the commissary is a key component of the supply chain and it coordinates the supply of raw materials to the stores. The commissary serves 240 stores across c800km radius in west India (stores across Maharashtra, Gujarat, Goa, and regions of Udaipur (Rajasthan), Indore (Madhya Pradesh)) and it has potential to serve c400 stores. While the key contracts (rates, terms) are negotiated centrally, the commissary is responsible for day-to-day orders (for vegetables, flour etc) and it ensures that all stores receive raw materials in 2-3 days. Note that beverages are provided directly to the store by the vendor.

It maintains three warehouses: (more…)

How Many More Dominos Pizza Stores Can Be Opened in 10 Years ?

Dominos Pizza India to take 10 Years to add next 1000 StoresDomino’s India has a historical five-year revenue CAGR of 46%, which has been evenly split between growth through new store expansion as well as growth in same-store sales. Against this backdrop, the big question that needs to be answered is: can the strong acceleration in new store opening run-rate sustain? Hence, can Domino’s maintain its sales growth rate in excess of 35-40% over the next few years through the opening of 200-300 new stores annually ?

The current demographics limit the total store count (more…)

Dominos Pizza Opens 37 Stores, SSS Growth at 16% – New Products

Dominos Pizza IndiaDominos Pizza in India opened 37 new stores in Q3 FY 2013. Present in 118 cities as on 31 December, 2012, up from 100 cities as on 31 December, 2011 Domino’s Pizza network extended to new cities such as Guntur, Navsari, Ankleshwar, Tirupur , Ambala and Tumkur coupled expansion in existing markets. The Same store sales (SSS) growth in Q3 FY13 at 16.1%; SSS growth in 9M FY2013 at 19.2%. The Company has a target of launching 110 Domino’s Pizza stores in FY13.

Dominos New Product Launches in India
Launch of Cheesy Boloroni Pizza – Pizza with a unique mix of (more…)

Dominos Same Store Sales Softens for First Time + Online / Mobile Sales Contribution 14%

Dominos Pizza witnessed moderated growth of 22% during the quarter [June-12] after 9 quarters of25%+ SSS growth due to weakening consumer demand. Management noted that they have witnessed some sluggishness in consumer demand during the quarter which made an impact of couple of percentage points on same store sales growth.

Company has been combating these signs of demand sluggishness with initiatives such as higher on-the-ground marketing, aggressive promotions, continuous product portfolio refreshes, and foray into new distribution channels such as online, mobile application platform, etc. (more…)