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Jubilant FoodWorks plans to cut its delivery time from 30 minutes to just 20 amid intensifying competition and shifting consumer behaviour with the rise of quick e-commerce companies. The franchise operator of Domino’s Pizza in India announced plans to shorten its delivery time during the company's post-earnings conference call with analysts on Monday, November 11, 2024.
As the demand for faster service is rising, Jubilant FoodWorks has prioritised improvements in delivery speed, which is part of a broader focus on operational efficiency. The rise of quick commerce has revolutionised expectations, transforming the delivery landscape beyond just groceries and forcing traditional online retailers to adapt swiftly.
Jubilant FoodWorks also reported encouraging trends in customer additions and order volumes, both exceeding expectations. The growth was boosted by an enhanced focus on high-volume periods, particularly between 11:00 am and 3:00 pm, when the company aims to maximise footfall in its stores.
The management also stated that the quick-service restaurant chain has been able to maintain stable prices for the past nine quarters. It also added that it was able to offset revenue lost from waiving delivery fees through select packaging charges.
Going forward, Jubilant FoodWorks expects continued positive momentum in demand through the October to December period, with strong consumer interest likely to drive orders. However, the company expects a potential rise in raw material costs in the January to March quarter, which could pose challenges on the margin front.
In Q2 results, Jubilant FoodWorks
reported a 2.8% like-for-like sales growth for the quarter, primarily driven by 11.4% growth in the delivery segment.
The company recorded system-wide sales of ₹2,271.9 crore, supported by a network expansion to 3,130 stores with a quarterly addition of 73 stores.
The overall revenue from operations reached ₹1,954.7 crore, a 43% increase from ₹1,368.6 crore in the same quarter last year.
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The Noida-based food service company is the master franchisee for Domino’s Pizza in India, Nepal, Sri Lanka, and Bangladesh.
The company also brought the American fried chicken chain Popeyes and donut major Dunkin Donuts to India, among other countries.
Jubilant runs two local restaurant brands, Ekdum! and Hong's Kitchen. It is part of the Jubilant Bhartia Group, owned by Shyam Sunder Bhartia and Hari Bhartia.
First Published:
Nov 11, 2024 10:40 PM
IST
