GURU GOBIND SINGH

INDRAPRASTHA UNIVERSITY
NEW DELHI

PROJECT FILE ON
(THE STRATEGY OVERVIEW-DOMINOS
BUSINESS PLAN)
Submitted in partial fulfilment of the requirement
for the award of degree of B.Com.(Hons.)
[Session:2021-24]

SUBMITTED AT:
DELHI SCHOOL OF PROFESSIONAL STUDIES & RESEARCH
ROHINI, NEW DELHI-110085
[AFFILIATED TO GGSIPU-NEW DELHI]

Submitted By: Submitted To:

1. Anurag Chaubey – 05212588821 Kirti Panwar
2. Tanya Aggarwal – 00312588821 Assistant Professor
3. Gunjan Bhandari – 05912588821
4. Sujal Jain – 00221788821 (3B)
5.Khushi Jain – 01012588821
6.Vikas Rathore – 03112588821
BCOM – 3A
1
 TABLE OF CONTENTS……

1. EXCUTIVE SUMMARY………………………….. 04
2. HISTORY OF DOMINOS IN INDIA……………… 04
3. OPERATIONS STRATEGY……………………….. 05
4. COMPETITORS……………………………………. 06
5. THE PRODUCT & SERVICE………………………10
6. PROCESS DESIGN………………………………… 12
7. PLANNING & CONTROL………………………… 20
8. CHAIN MANAGEMENT…………………………. 23
9. FINANCE……………………………………………26
10.RECOMMENDATION & CONCLUSION……….. 27

2
Operation
Strategy
Overview

3
 1. Executive Summary
This assignment has been written to demonstrate the analytical processes and strategies with a
lens of operation management & operations of Dominos India. We have applied theoretical
frameworks to evaluate the operational strategy with its product and services. This report
focuses on the daily operations of Dominos India’s Connaught Place unit specially, wherein
their staff and manager helped a lot to prepare this report. Team research, interviews and
insights from Dominos existing employees have been documented in this report.

Dominos India has been a leader in its market segment in India.

2. History of Dominos in India

On 26 March 1995 Domino's Pizza India Private Ltd operation began in 1996 with its’
first store in New Delhi. In January 2016, Domino's opened its 1000th outlet in New
Delhi. The company opened 53 new restaurants between January–March 2018 and
150 outlets in the in financial year 2017-2018 (works, 2016)
Domino's pizza is delivered to its customers with seasoning sachets.
A) Domino’s pizza is a well-established and known pizza brand over the last 57 years
They deliver pizza along with garlic bread and a combo deals with Coke as the
beverages partner.. They have more than 11000 corporate and franchise restaurant
stores in all over 70 countries. And India is the second biggest market for this US
based pizza company (source : Wikipedia). In India They were the first to bring in
the concept of 30 minutes delivery. This has become a benchmark now in India as
people say that Domino’s pizza reaches before police reaches at the spot. Along
with this its excellent customer service, frequent products introduction with variable
topping options as per the customer choice , many outlets close to your location,
soft spoken & trained staff and a peculiar taste have become a driving force for
them. Even though there are many players including Pizza hut, Papa John, Johnny
Rockets and local players, Dominoes is still number One In India.

B) Because of their exceptional operation strategy they have been performing very well
in this cluttered and competitive food market in India.

C) Mission Statement : Exceptional franchisees and team Exceptional franchisees and

team members to be the best pizza delivery company People first Initiative :
Excelling to make loyal customers.

4
 Objectives: Competitive growth
A) Establishing an extremely fast and reliable delivery model
B) Establishing an effective network of company owned stores as well as master
franchises stores.
C) Establishing new innovation for both product quality and technology
D) Focusing minutely on local market penetration by stores networks and local taste
knowledge management (Foodworks.com, 2018)

3. Operations Strategy
An Intro
Dominos is the largest player in the pizza category in India and globally. Its one of its kind
model has been a benchmark and first n the quick fast food industry. Since 1995, Dominos
Pizza India has successfully reached the milestone and opened 1180 stores across India And
as it has been used globally they use the franchise model. Dominos Pizza LLC’s parent
company is head office is in Michigan, USA. Their philosophy is to have the quality control
on the sourcing and hence to supply the raw materials including ingredients too to the master
franchises and setting parameters of quality always. (Marketing, 2016)

Below structure of the Dominos franchise model in the India.

Dominos
Pizz

Figure 1: Domino's Franchise Model: India

Franchise
Sub- Sub- Sub-Franchisees

5
 Vision

__

Order : Qualifier and Winner

The selling needs the basic criteria to have the product quality for selling. The customers
purchasing criteria are Order Winners criterias. Figure 3 shows the same.

4. Competitors
Dominos India’s competencies at the core have been evolving over time with their
unmatchable sets of strengths. This has helped them to be dominate player in the pizza food
service industry, and becoming a largest player in the home delivery / take away in India. We
will see in pages next how they rule the Indian market in fast food service industry.
(Marketing, 2019

6
Existing Value Chain
Dominos India’s need to create the product is driven the needs of the customer. The value
chain which drives the customer is:

1) Reliable take away restaurant,

2) Right price, right quality & hot food and
3) Menu which has variety

These key customer needs have been the focus area of Dominos India since beginning of their
operation in India. And haven’t changed majorly like the competition like pizza hut and other
local players have done. For example not focusing on sitting arrangement or parties like others
have been evolved up to. Dominos India focuses on - Takeaway or Home delivery. It has
been adopted from its global model which settles for lean stores, well-skilled staff and menu
wise a very flexible local approach to match customer tastes. Operational requirements have
prompted the use of technology to make the customer experience more enriching, Dominos
India were the first to bring in the branded Pizza to India and were the first to be on TV media
in India and that very heavily to become a household name all across in India. (Marketing,
2019)

V alue Chain of Product

As per the Porters model, exhibited above that 5 primary activities that are primarily
connected with the product production and the external customers services. These can be
seen as activities adding values, such as inducting mobile app technology to book their orders
by a simple text message which will make this very convenient. Dominos India ensures
accuracy of the orders to 98%.

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 PRODUCT VALUE CHAIN

1.

Franchisees Acquisition & Infrastructure

Human Resource management

Use of Technology Margin

Product Development & Improvements

Ordering Delivery of Taking Delicvery Advertising

Ingredients Material to orders of Orders &
stores to marketing
cusotmers

Primary
Activities

Figure 6 Product Value Chain: Dominos India

Operations Strategy Implications (Store Level)

With a committed and prime focus on the quality and speed, store plays an important role
in all this.

A). Reducing operating expenditure improving stores efficiencies.

B). To have good profit, store location should be done strategically. This will also
ensure 30 min delivery which is the committed USP.

c) Stores Design to improve production as well it lets its customers see the kitchen, its
hygiene which plays big role in marketing.

D) Floor efficiency from preparation, cooking & packing which are done proficiently
to complete operational process.

E) Dominos has efficiently adapted its operations in PULSE helps to be cost effective
by giving easy access to entire marketing & financial. This is also called point of sales
marketing method.

F) To choose from varieties of toppings keeping in mind the local region al taste of
people has given Dominos a huge advantages over its competitors which also makes
its menu wider.

G) Regular audit programs for overall and specific improvements. (Marketing, 2016)

8
 Competitor Analysis

Figure 8: Dominos versus its Competitors India (India, 2016)

Currently Dominos is placed at 12 th rank among all the top quick food chains . Dominos
India must have new strategies to be implemented so that maintain a higher ranking
with other food chains.

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5 The Product & Service
Introduction
Dominos India has saluted themselves as core Pizza product company but also have
included many other add on items like, wings, chicken strips, chicken bites, garlic bread
and many localized variations made out of potatoes. An offer of combo by choosing a
various sizes pizza with suitable toppings for flavours has been the benchmark of
customisation suiting to your taste. PLUS tie-up with soft drinks majors is additional; ass
per the choices of drinks. Dominos India like the global model has successfully
implemented the model of your choice your pizza across the globe and is also been
implemented in India. A standard taste across the world proves that quality and taste are
standard irrespective of the geo locations.

Its important to analyse the product performance to evaluate how successful is the
product justifies the product design cycle.

Figure 11 Evolution of Dominos US/UK (Wikiepedia, 2015)

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Figure 12 New Product Development

11
 6 Process Design

Dominos India as an entity with a product element is very unique since it covers Service
package and Service based and both are the product based.

Product Service Continuum of Dominos India

The Process of Conversion

Tangible and intangible elements are part of the process and where- in the customer is
important stages in the value chain. The first in its kind in India the introduction of open
kitchens, the Customer can experience the preparation of his order from time of the order
booking to the consumption of the food. (Marketing, 2016)

The conversion process

12
Dominos India, when it comes to the product they bake or cook or make, is also in a unique
position:

Volume: High volume – Modern kitchens justifies the overall volume and trained or skilled
staff who is working in the kitchen and the front counters management.

Variety: Various sizes of the Pizza along with choices of toppings

Variation in demand: variation of orders during peak hours of the day and peak seasons.

Degree of visibility: Home delivery customers cannot witness the open kitchen format of
the pizza making process where as the take away customers can see and experience the
making process and appreciate the processes adopted to deliver a quality pizza. The degree
of visibility here is very important for Indians as in our country where kitchen used to
always at the back of the restaurants or away from the customers visible side. Since the
kitchen was not visible, the staff were not so keen to keep it super neat and clean and was
never a selling proposition to customers. The selling proposition was only the product but
Dominos changed the scenario completely and this too has become a selling point to
convince people on product as well. Higher degree of visibility of Dominos has become a
higher degree of conviction about the quality of product and hence the taste as well.
Dominos India has selected a very unique Product / Service mix that can be seen below.

Volume and Variety Mix with its Assembly Line: Dominos

A high degree of quality and a high degree of consistency is needed in Pizza and other food
stuff , the assembly line approach has been selected by Dominos India to go with to make

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 delicious pizzas. At the same time maintaining & then by using the batch type
manufacturing process the flexibility remains. This has been explained above in a very
simple manner. It is important to mention here the using of the term the assembly line
approach which ensures the outlet to have the flexibility to deliver their orders during
known or unknown peak hours or busy hours. Dominos LLC names this assembly line the
as the “make line” which in India is also followed.

The Production Process

A Very streamlined and structured process is followed - from the order placement to the
final delivery to the end customer.

Step 1: The customer initiates the order. The phone, internet or a walk-in to the restaurant
are the various options available

Pix
: Order Taking Counter of one of the stores

Step 2: The retail booking person enters it into PULSE system after booking the order
(Order process is streamlined by this proprietary system) (India, 2016)

The key functions of the PULSE system increases efficiencies at a store level : Its key features are:

(a) Touch screen ordering ensures a faster yet more accuracy in order booking
which in-turn increases the efficiency in needed hours.
OPM 1901

(b) Bikers routing system significantly improves delivery efficiency.

(c) MIS reports making capabilities are significantly improved.

Step 3: The screen in the assembly line shows the customer orders with ordered
specifications

14
Step 4: The designated person of the picks up the work order, starts the working by
flattening the required size of the dough, sauce and cheese is applied.
Step 5: Another team member after the previous step in this assembly process adds the
appropriate amount of ordered toppings before placing it in the oven

Step 6: The third team member of staff takes out the ready pizza from the oven after the set
time required to bake the pizza and places it in the right size box and stickers generated out
of the order machine which has all the control data like the type & phone number of the
customer and other details which facilitates accuracy). Pizza is ready now to be sent to
customer. (US, 2016)

15
 Packing Division : Dominos

Step 7: A specially designed hot-bag is used here to put the pizza in and is dispatched
through a delivery biker to the customer place or handed or given to the front counter guy
who calls the customer in waiting in the outlet itself for the pickup.

16
 , warehousing and

Store Layout:

A process dominated store layout is adopted by the Dominos India which is very specific in nature and
which has clubbing of processes together since the product moves always between these stations. This
facilitate the movement of products on the integrated floor plan and respective team members between
each and every station to manage capacity the work load during peak hours and minimize issues which
we call them as bottlenecks.
Every retail outlet is equipped with a small cold storage which has enough capacity to have ingredients
to be fresh for 4 days. This unique design enables the appropriate and optimized use of the available
space and baking and other equipment thereby enhancing the skills-set and competent -efficiency of the
team members, it also enables and allows team members to adapt to different level of production of the
food. Dominos India as specified by the company and government are strictly followed for a very safe
working environment and conditions for the entire working staff. The interiors standardization principal
is adopted across all the stores in India to have same look and convenience to create a workable
environment for the staff which should be seen a nicer place to work which further enhances the
reputation of the brand and image too in front of the customers.

Any store layout will have a reception area, the assembly line area, Oven area, Packing area, back
office, Mini Cold Storage, and cleaning and washing Area. (US, 2016)

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 Storage Cleaning & Washing Designated Area

Cold Storage

Offce
Place of Oven Assembly
-Line

Packing / Ready for Delivery area

Recep. Area Customer Waiting Area

Typical Store Layout: Dominos

Areas of Suggested Improvement

Process Oriented:
Dominos India has been facing problem with its make line is which is not the balanced,
Reasons are:

(1) Time is not same for each activity

(2) Individual efficiencies & competency of team members matters a lot to have smooth
work flow because the process is not automated.

The above two reasons cause issues in term of creating bottlenecks. The delivery biker
drivers if are not given a new age GPS based navigation system, which will certainly ensure
an efficient on-time deliveries and other issue is some time the drivers don’t have good
knowledge about the locations or the better route to reach to avoid failing to deliver the pizza
in 30 min. So here if a training is conducted on every driver with trials will solve the
problems to an extent. (works, 2016)

18
Production and Store Layout:
The designated work-floor of the store and its layout enhances degree of optimization of the
floor area available and to minimize the serious health and safety hazards. The team
members will work perform efficiently and will be working safely in close proximity area
to the baking oven specially There has been burn cases in the past. The Connaught place
new Delhi store which is a busy always outlet we visited handles high volume of sales as it
has sitting tables also for people to eat pizza in store itself. Space crunch issue doesn’t give
enough work area for team sand chances of accidents are higher.

In the given limited space only one oven with two conveyor belts can be accommodated
which creates a serious bottleneck when the one of the conveyor belts oven fails.

Also the parking issues of delivery motorcycles, because of not enough and dedicated
parking the drivers park their vehicles without the marking which creates issues legally and
also for the customers.

Proposed Improvements Process:

The inefficiencies are bound to happen when we do the manual movement of products. The
blue tooth enabled mobile phone will certainly increase overall efficiencies because it has
the navigation system to reduce the delays in the delivery times, and thus driving up.

Store Layout:
The store space must be re-planned and re-layouted to have more space for the movement
of goods and people especially during peak hours. Consideration should be given to the idea
of separating the operations of the Dominos store for Connaught place, New Delhi and
adjoining areas to manage the demand.

A better location of the baking oven will surely be better with an objective to be very safe
people working around the oven. Specially keeping in mind the health and safety of the
people during heavy load of work hours or in the peak seasons. A very learly marked
parking for dominos India bikers people is also very must to be done. The drivers should be
instructed to use the designated loading area only to eliminate the potential accidents and
hazardous circumstances.

We are sure if we follow the above and create and design a layout and plan, which will
certainly increase the efficiency and minimize the accidents.
These things will also bring in a healthy working environment which also in turn will deliver
more margin for the outlet.

19
7 Planning and Control
Application of Goldratt’s theory of (Constraints:
•
18 Pizza is the maximum capacity to bake pizza simultaneously, which creates a
bottleneck during heavy load hours / peak seasons or in busy hours of the day.

•
The load should be shared in case an outlet faces a huge peak in the orders and can’t be
managed to meet the stipulated 30 min time. This will also maintain the retained
reputation of the brand – Dominos India

Production and Controls Constraints: Dominos India Store

Dominos Demand Strategy

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Lean Management Operations: Demand Forecasting
Dominos India uses the global dominos tool known as ‘Ventura’ which is a
distributionplanning suite to accurately forecast its inventory and demand planning
(forecasting) primaril . This tool helps Dominos India to create a solution by taking the
“Matched receipts to demand module generation”. This enhances, increases and maximizes
the overall supply chain efficiency by a very good margin facilitating Lean Management
operations.

The Ventura planning suite which we call it as primary monitoring tool in inventory and
which efficiently determines and tells when a specific kitchen or centre needs a specific
product or products. Optimization rules is applied to maintain the inventory of products or
ingredients in stores.

Retail outlet stores requests are received through PeopleSoft Enterprise Resource Planning
(ERP) of the company system this and it uses the captured data to collect and aggregates all
of these received requests are documented to establish and initiate refill requirements. It
also sees carefully and also considers any bottlenecks and limitations such as purchase per
order amount – next purchase orders are issues with same terms & conditions as were in the
earlier ones.

Promotions Planning Forecasting

This Ventura- planning tool efficiently manages promotions schemes as well, this tool helps
to increase the supply chain demand for specific products accurately.

Dominos India plans promotional forecasts along with its marketing communication
agency by considering and looking at 4 months of saved and documented historical
informations. This system also contains promotion profiles in a tabulated library form for
the real-time analysis of the current period, which further can overlay new knowledge from
the corporate marketing department which is most likely to influence the new promotion. it
provides recommendations for promotion adjustments accurately based on this captured
data. (Academia.edu, 2015)

Innovation and Improvements

In more than two decades, Dominos India has introduced many new products for the menu
and processes hence has been successful in increasing its quality and efficiency in a big
way . The Dominos India has developed its innovative approaches in four main areas of
paradigm, position, process and product innovations.

Figure 25 below depicts the each combination of the products as per the Market based
called Eureka and Resource Based sources.

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 Innovation Chart: Dominos India

The Paradigm Innovation

The Radical innovation: Need pull effect
The Dominos India company implemented the radical innovations to handle the pressure of
expansion for the business which has created a super need for the company to develop its
own system - A vertically integrated supply chain. We will explain in detail and more this
under the supply chain section of this assignment. The need pull factor can be looked as a
more effectively innovative approaches to save in the cost and time used or resulted in this
strategy for the shift of procedures. (Academia.edu, 2015)
The Position Innovation
The Radical innovation: Eureka moment
Being the first to this invent this marketing technique was a Eureka moment for Dominos
which is a radical approach and is an innovation where in Dominos India invented the
innovative three dimensional car top signs.. A very well implemented effective marketing
initiatives which may become viral, Dominos India must do efforts reach out to as many as
possible their customers and should retain the leadership position in the QSR category in
this country. Their Hungry Kya campaign became a super hit campaign which positioned
the company as to fulfilment your hunger with Dominos Pizza. (Academia.edu, 2015)
The Process Innovation
The Radical innovation: Need Pull & Eureka moment
Several innovative approaches developed by the company in their processes. The more
efficient and a super multi-functional tools need resulted in the development of the another
innovative tool called Spoodle that combines a spoon and a ladle. Their “eureka”
innovation which got innovated and implemented internally with the mesh introduction in
Dominos USA that helped cooked the pizza crust more evenly crispy. And plus which has
been a very unique and established benchmark 30-minute of guaranteed delivery.
(Academia.edu, 2015)

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Again, Dominos Globally and in also India were the pioneer to introduce the never before
ways like these. The company also improved significantly further after the feedback and
experiences the its routing optimized the in cost for running these bike delivery by using an
effective routing software. The need to outperform the competition in terms of quality, cut
costs and operate more efficiently encouraged the company to develop this.

Product Innovation
Radical innovation: Eureka moment
Another radical innovation was applied to Dominos product. The packaging departments
also took a leap to design a attractive and useful Corrugated pizza box. The strength of this
box very well protects the pizza and its shape from physical damage, Moisture weakening,
to prevents cheese from sticking to the top. The “Heat Wave” bags which have a patented
insulation technology to keeps pizzas both hot and crisp which become a promise fulfilled
quality delivery to the customers. (Academia.edu, 2015)

Incremental innovation: Need pull: Knowledge push

The unrelated previously mentioned variables – price and delivery time. effective Designing
and implementing an effective higher value proposition and the need for the customer. The
increased value can be used to established relation between price & delivery. The Company
has also expanded its core product to suit to the local target audiences to include products
such as Garlic Cheese bread and range of sauces to choose from.

8 Chain Management
Introduction
To supports lean production, Dominos India Pizza has adopted a very effective called the
Make-to-Stock (MTS). This is part of their Supply Chain Management and is based on just
in time (JIT) stock management to manage stock control.

Dominos India Supply Chain

Dominos India like globally has an innovative benchmarking supply chain model. It ensures
all purchases are to be managed vertically and centrally across all franchises around the
world. Jubilant Food-works is the core entity, which runs the supply chain network is
named as Dominos supply chain services – a fully owned subsidiary, which supplies the
dough, raw materials (the condiments, and ingredients that go into the food products), the
kitchen equipment / machinery etc.

This fully owned entity supplies to all the master franchises – effectively giving the
company a few key advantages: (India, 2017)

(1) With a centralized buying department, the company is able to leverage its negotiating
and buying power, and is able to negotiate hard to its best for the costs for its purchases.
This also ensures purchases on a high scale for vendors which makes suppliers want
to tie into the Dominos India supply chain services. For instance Coca-Cola is
integrated into Dominos India supply chain network, and is seen more as a beverage

23
 partner rather than a supplier since all need beverages along with pizza to eat.; Dominos
India has agreed to have combo offer of Coke company products centrally at all its
outlets across India.

2) The Economies of scale: Dominos India s also able to use its large consolidated
buying power to hedge or negotiate better costs when commodity prices fluctuate, it
also gives it a better bargaining power with suppliers because of the huge orders for
across the products. (India, 2017)

FARMER PRODUCERS

Central Storage

Supply Chain Model: Dominos India (India, 2017)

kitche kitche kitche kitche

Operations Management Assignment

Outle Outle Outle Outle Outle Outle
Dominos India
has been able to
standardise and
centralise the supply
chain services even at a
master franchisee
level,. Taking the India
supply chain as an
example, we look at the
country level supply
chain works:

24
 (1) All the raw materials and food stuffs (dough, ingredients) are prepared at a 4 central
commissary in India – Delhi, Mumbai, Bangalore and Kolkata.
(2) The wheat is sourced from Jalandhar, Punjab in North India and Cheese is sourced
from Karnal also in North part of India.
(3) The designated commissary supplies to distribution centres which are located in these
4 major cities mentioned above.
(4) The distribution centres supply these to the designated specific individual stores which
also has their mini cold storage enough to last the stuff for 4 days (to ensure a JIT
philosophy) – it could be on a more need basis, and this is tracked by the third party
software called Pulse system which keeps track of consumption at an individual or
specific store level

Supply Chain at a Country Level

Critic and recommendations

When the demand has exceeded, it should be noted that, the predicted demand in the past,
the stores have faced issues with stock of not or more than enough dough, more side orders
and less or enough packing boxes It also taught them to do inventory check for each items
before any order inventory item is to be purchased case of any super needs. A
comprehensive, sophisticated, user friendly stock management tool to enable store to
estimate the upcoming demand and hence manage its stock is highly recommended which
can be fulfilled by adopting the evolving AI. (Academia.edu, 2015)

25
9.Finance

The first menu expansion occurred in 1989, with the debut of Domino's deep dish. Its
introduction followed market research showing that 40% of pizza customers preferred thick
crusts. The new product launch cost approximately $25 million, of which $15 million was
spent on new sheet metal pans with perforated bottoms. [44] Domino's started testing extra-
large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator"
• Domino's Pizza Israel was founded in 1990, and opened their first branch in 1993. [61] They
are operated by Elgad Pizza. As of August 2014, there are 33 branches throughout the
country. There are 4 kosher franchises.[62]
• The rights to own, operate, and franchise branches of the chain in Australia, Denmark,
New Zealand, France, Belgium, the Netherlands, and Monaco are currently owned by
Australian Domino's Pizza Enterprises, having bought the master franchises from the
parent company in 1993 (Australian and New Zealand franchises) and 2006 (European
franchises).
• The master franchises for the UK and Ireland were purchased in 1993 by the British
publicly listed Domino's Pizza Group (DPG), which acquired the master franchise for
Germany in 2011, and Switzerland, Liechtenstein, and Luxembourg in August 2012 by
buying the Swiss master franchise holder, with an option to acquire the Austrian master
franchise as well.[63][64][65] DPG opened its first Swedish location near the Mobilia
shopping mall in Malmö in December 2016; three years later, in 2019, they announced
that they would be selling all of their current business in the country.[66][67]
• The master franchises for India, Nepal, and Sri Lanka are currently owned by the Indian
company Jubilant FoodWorks. India is the largest international market for Domino's
outside its home market, being the only country to have over 1,000 Domino's
outlets.[7] The company operates 1,362 stores across 264 Indian cities as of 2018.[7][8]
• In Bangladesh, the franchises for Domino's Pizza are co-owned by Jubilant
FoodWorks and Golden Harvest Limited, forming 'Domino's Pizza Bangladesh Limited'.
In this entity, Jubilant FoodWorks is the majority shareholder and owns 51% of the
company, while the rest of the share is owned by Golden Harvest Limited. [68] The first
store in Bangladesh opened in February 2019. [69]
• As of July 27, 2020, Domino's Pizza opened in downtown Zagreb, Croatia.[70]
• As of 2020, Domino's Pizza opened 550 stores in Turkey. [71]
• In Italy, Domino's declared bankruptcy closing all its stores. [72]
• As of November, 2022, Domino's Pizza opened in Montevideo, Uruguay, being the
franchise's first location in the Southern Cone, and announcing the plan of opening 20
stores in this city in the next 5 years. [73][74][75]

26
 Sales[edit]
There are currently 6,157 total Dominos units in the US, and of those 5,815 of those are
franchised units. In 2018, the Average Weekly Unit Sales (AWUS) for franchised units was
$22,045, showing a consistent increase over the past five years. Per year, this amounts to an
average of over a million dollars in sales. Domino's EBITDA was 15.0% for stores making
more than $25,000. The vast majority of stores fell under this category, over 1,500 units.
According to Domino's 2019 income statement, their net income was just over $400,000.
The initial franchise fee for a Domino's franchise is $10,000, the royalty fee is 5.5% of the
store's weekly sales, and the advertising payment is 4% of the store's weekly sales. [76]

10 Recommendations with Conclusions

Dominos India , when we studies its operations, and its global operating model – we
conclude that Dominos India is currently is confused or we call it in a situation of flux.

A very good resilience has been shown by the company in the past and it has a very apt
ability to innovate to face the tough competition, This push-based strategy could have
rather a pull-based strategy. Dominos India has shown the ability to adapt and innovate but
still is too far to read the taste of the people fast and innovate the products. The competition
have gone way ahead in launching new kind of pizzas and growing their market share. The
reworking of the recipe in the US market in 2009 was a brilliant test case in a company
reacting to change, and Dominos India too should think something unique to show its
leadership and biggest market player capabilities.

There are some solvable and some unsolvable challenges for Dominos India listed below :

 Poor Infrastructure of Roads specially: food wastage in transporting from farmers to

end consumer. Logistic cost is 7-10% in India than globally 4-5%
 Economic downturn: Labor problems, volatile Currency exchange fluctuate the
transportation cost
 Above leads the companies to keep high buffer in inventory resulting in high in-cost
 1 out of 30 times (3.3%), Pizza is delivered free because of not delivering in 30 min
because of poor tracking system to point out the problem
 Wrong order is booked many times because of skill- set issues of the staff

Some of the above can be solved by:


 Inbound: Need to reduce cost by having a one more (at-least) sourcing place to
procure Wheat & Cheese preferably in central India which is also a large wheat

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 farming region. Transporting it from up north Jalandhar & Karnal to down south in
Bangalore, the cost goes very high
 Inhouse: Skilled people so as to reduce wastage and improve margins
 Outbound: RFID led tracking devices to control the FREE Pizza wastage ( “30 min or
FREE” is the USP of Dominos India)
Dominos India needs be more intuitive to drive in customer led changes. This can be
different location to location, rather than going for one treatment for all which won’t be
effective as India being very large and diversified country.

With the product manufacturing approach the threat which exist for Dominos India is a
service-oriented entity. The company’s key focus and USP is to deliver pizza on time. In
past few years Dominos India has not been focusing on its service aspect, and in an
increasingly customer centric world it is critical that Dominos India improves its hiring /
training, skill set practices and deliver a reputed world class customer service along with
the best in class product with expanding menus items to freshen up the range with
innovations.

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