Domino's will now deliver your pizzas in just 20 minutes
What's the story
Jubilant FoodWorks, the franchise operator of Domino's Pizza in India, has announced plans to reduce its delivery time from 30 minutes to just 20.
The strategic move comes in response to rising competition and changing consumer behavior led by fast e-commerce companies.
The announcement was made during the firm's post-earnings conference call with analysts yesterday.
Strategy
Aiming for operational efficiency and customer satisfaction
As part of a larger focus on operational efficiency, Jubilant FoodWorks is focusing on improving delivery speed.
The emergence of quick commerce has changed the game, making delivery a lot more than just groceries and compelling traditional online retailers to keep up.
The firm also noted positive trends in customer additions and order volumes, both of which have surpassed expectations.
Financial stability
Stable prices and revenue strategies amid market changes
Despite market changes, Jubilant FoodWorks has managed to keep prices stable for the past nine quarters.
The company has also compensated for revenue lost from waiving delivery fees through select packaging charges.
Moving forward, it sees continued positive momentum in demand through the October to December period, with strong consumer interest likely to drive orders.
Growth report
Jubilant FoodWorks reports growth in Q2 results
In its Q2 results, Jubilant FoodWorks posted a 2.8% like-for-like sales growth for the quarter, mainly driven by an 11.4% increase in the delivery segment.
The firm posted system-wide sales of ₹2,271.9 crore, aided by a network expansion to 3,130 stores, with a quarterly addition of 73 stores.
The total revenue from operations stood at ₹1,954.7 crore - a whopping 43% increase from last year's same quarter.