Domino's to stop leasing, begin franchising in India

 
Sept. 24, 2002

NEW DELHI -- Domino's Pizza plans to start helping its employees in India become franchisees.

According to the Economic Times, Domino's head of international business Paul Skinner said the company wants to trade its lease model of operation in India for a more traditional franchising model.

Skinner said that Domino's pizza sales in India are growing at a double-digit clip, (though he declined to share exact figures), and that the company expects to invest around Rs 80 crore (U.S. $16 million) to open 100 more outlets in 24 Indian cities over the next few years. The cost of opening each outlet will be Rs 60-80 lakh (U.S. $120,000 to $160,000).

Since entering the Indian market a few years ago, Domino's has learned that the country's customers want pizzas prepared with traditional Indian ingredients and sold at affordable prices. Consequently, the company has revamped the flavor profile of a third of its offerings and increased value offers to suit conservative spending habits.

Domino's also has discovered that Indians love mithai (assorted native sweets and candies), and Skinner said the company plans to cater to that demand.

"We have spent a lot of time getting our business right in India," said Skinner. "A great deal of resources has gone into establishing the Domino's brand. And now we are looking at growing the brand here."


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