Jubilant FoodWorks, which operates Domino’s Pizza and Dunkin’ Donuts outlets in India, has shut 13 Dunkin’ Donuts and 8 Domino’s stores in Q4FY17. The company has also sharply cut store opening guidance in FY18 to 40 to 50 Domino’s stores as against last 3 years average of around 130 to 135 stores in FY18, said Shyam S Bhartia, chairman, Jubilant Foodworks at a post earnings conference call.
In the quarter, the company added 18 Domino’s outlets and closed eight, taking the total store count to 1,117. It closed 13 Dunkin’ outlets and added three to bring down the total store count to 63. The company has also done menu rationalisation in FY17 which resulted in 2 per cent year-on-year price hike and is not planning to take any price hike in FY18, Bhartia said.
Pratik Pota, CEO and whole time director, Jubilant FoodWorks said, “We intensified our cost optimisation drive across all functions in the organisation. In addition, we also sharpened our strategy to get growth back in the business.” Net profit of Jubilant FoodWorks witnessed a sharp decline of 76 per cent to Rs 6.7 crore in the fourth quarter of the financial year 2016-17 from Rs 27.8 crore a year ago.