Do you want to start a franchise in India? The food franchise industry is blessed with Domino’s Pizza, which is among the most recognizable franchises for business ventures. Following the American market, Domino’s Pizza arrived in India in the mid-1980s, and within the next three decades, currently it has 1,995 outlets in 421 cities in India.
Overview of Domino’s Pizza
Domino’s Pizza was launched in 1960 by James and Tom Monaghan, who gave it a new name in 1965 as Domino’s Pizza. It has its headquarters in Michigan, USA, with worldwide outlets and more than 17, 000 franchising companies in 90 nations globally. Domino’s, being an innovative company, has encouraged online ordering from apps, its own websites, and wearable applications. Web-based orders make up over half of the total sales figures.
Source: Google Images
Subsequently, Domino’s has been changing, implementing new changes into the menu, better recipes, and the latest delivery methods such as drone and robot deliveries. The growth of the brand can be seen with pizzas sold around the world amounting to an average of three million daily.
Domino’s was started in Michigan and the company began to flounder; however, the management was able to turn the firm around through such as franchising and globalization.
Domino’s has been able to demonstrate flexibility and growth, indicating its capacity to be a market leader in the global pizza market.
What is a Domino’s franchise?
A Domino’s franchise is a type of business ownership whereby the franchisee is given a license to run a Domino’s pizza restaurant with rights to use the corporation’s name plus recipes and guidelines. In return, the franchisee pays an initial franchise fee and renewable by specific intervals royalties to the franchisor.
Training and marketing assistance and technical support covering operations are among the advantages offered by Domino’s, making it an interesting choice for franchisees.
Why Choose Domino’s in India?
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Pizza has started playing an important role as luncheon, evening snacks and other leisure foods in Indian consumers’ markets. Domino’s Pizza is one of America’s best-known pizza chains, offers a long list of options for customers, and is especially popular with all age groups.
Through the delivery of food that ensures a high-quality, comfortable environment in the food delivery and door-to-door delivery of the food, a Domino’s franchise can easily make a monthly profit margin of at least Rs 1-3 lakh.
This makes it one of the most profitable businesses in the Indian food business industry or segment of the industry.
According to a survey made in 2018, Domino’s takes the title as the largest pizza-selling company in the whole world in terms of retail sales.
Different formats of Domino’s Stores in India
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Domino’s offers three types of store formats to cater to different market needs:
Traditional Outlets:
These stores are required to be situated in busy areas such as shopping centers or individual stores with many floors.
They offer sufficient area for eating, carryout business, and delivery business.
Non-Traditional Outlets:
They are fixed at such places as toll highways, airports, stadiums, business corporations, etc.
They primarily focus on takeout, although some may have small seating areas.
Transitional Outlets:
Designed for areas with fewer customers, these outlets have localized menus catering to regional preferences.
Investment Costs to take a domino’s franchise in India
The cost of opening a Domino’s franchise in India varies depending on the store format:
Traditional Outlet: INR 50 lakhs
Non-Traditional Outlet: INR 30 lakhs
These costs are the cost of such facilities, machinery, and licenses as may be required. Fixed costs such as rent do affect the total investment. To invest in such a business, one requires a clear business plan to guide him/her on how best to operate the business.
Requirements to Fulfill
Domino’s Pizza today is a global brand and any individual interested in joining the successful team must fulfill the following Domino’s franchise requirements:
1. Infrastructure:
Customers are attracted first and foremost by welcoming infrastructure as well as well-maintained structures.
Make sure the size of the space would allow for physical customers as well as delivery orders.
2. Location:
Choose a space with a lot of potential customers passing by.
This improves customer satisfaction since facilities are easily obtainable.
3. Workforce:
Organizational operation calls for the use of a competent and correct workforce.
To sustain customer loyalty, employees have to subscribe to the Domino’s culture.
4. Delivery Personnel:
You should hire a team for quick door-to-door delivery service.
Give them adequate teaching on the machines, then provide them with serviceable vehicles.
How to Franchise a Store and Start Domino’s Business?
Step 1: Application Submission
This application can be downloaded from the franchise section of Domino’s official website and it is quite simple to complete it. Wait for the company to reply to you.
Step 2: Documentation
Afterward, you will receive crucial paperwork needed to proceed from the corporation and the approval of the application from Domino’s.
Step 3: Telephone Interview
It means that a phone interview is aimed at assessing the candidate’s knowledge of how a business works and whether or not you two will make a good team.
Step 4: Meeting with Franchise Development Manager
Depending on the outcome of the interview, you have the chance to get acquainted with the manager of the franchise development in detail.
Step 5: Financial Due Diligence
Make necessary disclosures and undergo some formalities as provided and required by the company.
Step 6: Training and Orientation
Travel to training centres provided by Domino’s to understand organisational operations, markets and customers.
Step 7: Signing the Agreement
Take the franchisee examination, apply for a franchise outlet and sign the franchise agreement to become a Domino’s franchisee.
Licenses and Documentation Required
To operate a Domino’s franchise, you’ll need the following:
- Business registration proof
- Address proof
- Aadhar and PAN cards
- GST number
- FSSAI license
- Property papers (owned or leased)
- Photos of the property (right, left, and front views)
- Insurance
- Previous business turnover report (last three years)
- Employee Provident Fund (EPF) and Employee State Insurance Corporation (ESIC) registration
Key Points to Remember
- Domino’s franchises in India are managed by Jubilant FoodWorks Limited. Reach out to them for franchise-related inquiries.
- Contracts for non-traditional outlets last five years, while traditional outlets require a ten-year commitment.
- Domino’s offers training programs to ensure franchisees are equipped to manage operations successfully.
- Maintaining high-quality service and customer satisfaction is crucial for success.
Challenges of Operating a Domino’s Franchise
Owning a Domino’s franchise comes with challenges, including:
- High competition in the food industry
- Managing operational costs
- Retaining skilled employees
- Consistently delivering high-quality service
Business Model of Domino’s
Source: Google Images
Domino’s operates a streamlined business model, focusing primarily on two channels: web-based pizza products and franchised stores. This is a huge advantage to the brand since it creates a two-pronged marketing niche on the global market front while giving customers what they need—convenience.
Customer Segments
Domino’s caters to a broad and diverse global customer base with a particular emphasis on
- Youth
- Working professionals
- Event organizers
Value Proposition of Domino’s
Domino’s delivers value to its customers through multiple facets:
Digital Ordering:
The mobile application and the page easily guide a buyer through the process of placing an order.
Because delivery is fast, Domino’s often has online specials; the extent to which America and other audiences alike are going ‘online’ cannot be overemphasized.
Global Reach:
Following the above facts, we can classify Domino’s Pizza as having its stores operating in more than eighty-five markets around the world in regions such as the Americas, Africa, the Middle East and Asia.
This means it is well connected so as to guarantee the distribution of its famous pizza products across different areas.
Ease of ordering and accessibility:
An order can be made through phone, application, as well as through physical stores.
Extraordinarily, customers may place orders with preferred options of combinations of the commodities as per their desires.
Efficient Supply Chain Management:
Domino’s uses a private-label flour making and distribution network.
This has a benefit with regards to centralizing quality where its franchise locations are involved to maintain the confidence and satisfaction of customers of the company.
Strategic Partnerships
Domino’s collaborates with various partners to enhance its operations and market presence.
Vendors:
This is so because appropriate source vendors provide good stocks of quality raw commodities and supplies.
Franchise Partners:
These partners are mainly responsible for the brand development and cost-saving by means of franchised stores.
Marketing Partners:
Partnerships with well-known brands like Primo, Kagome, and Vizi help Domino’s to reach other customer segments and increase market dominance in critical regions.
How does Domino’s make its revenues?
As it has been pointed out, the largest source of revenue for Domino’s is through sales of pizzas and other products, through the e-commerce platforms as well as traditional business models.
The foods available when ordering from the company include a rich line of pizzas, which can be ordered in different sizes and with different accompanying toppings, as well as ordering beverages.
Others include the delivery fees and the franchise fees for operations of the outlets all across the world.
Conclusion
Domino’s Pizza is a trusted brand with a proven business model, making it a rewarding franchise opportunity in India. By selecting the right location, investing in infrastructure, and maintaining high service standards, you can build a successful Domino’s franchise.
Ensure you follow the necessary steps, obtain the required licenses, and focus on customer satisfaction to maximize your profits. With dedication and strategic planning, your Domino’s franchise can become a thriving business.
