Summer Training Project Report On Dominos, by Abhishek Tyagi

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Prestige Institute of Management, Gwalior (M.

P)

Summer Training Report

ON

FINANCE ASPECT OF DOMINO’S PIZZA AND COMPARATIVE


STUDY BETWEEN PIZZA HUT AND DOMINO’S
“For the partial fulfillment of the award of Bachelor of Business Administration”

(2008-2011)

Submitted To Submitted By:

JIWAJI UNIVERSITY GWALIOR ABHISHEK TYAGI

B.B.A V SEM
Prestige Institute of Management, Gwalior
Airport Road, Near Deendayal Nagar , Gwalior- 474020

Tel.:0751-4097000,2470724, Email : info@prestigegwl.org; Website: www.prestigegwl.org


DECLARATION

I ABHISHEK TYAGI, student of BBA V Semester of Prestige Institute of Management,


Gwalior, hereby declare that the project is my original piece of work and not the copy of any
such work undertaken by someone else, all the information , facts and figures presented in the
report are first hand in nature. They are actually based on my intense efforts conducted in
DOMINOS PIZZA India Ltd. I have completed this project under the guidance of Prof.
NAVITA NATHANI (Faculty PIMG).

Date: ABHISHEK TYAGI

(B.B.A V SEM)
CERTIFICATE

This is certifying that the project entitled “FINANCE ASPECT OF DOMINO’S PIZZA AND
COMPARATIVE STUDY BETWEEN PIZZA HUT AND DOMINO’S” is a work done
under the guidance of Prof. NAVITA NATHANI by ABHISHEK TYAGI in the partial
fulfillment of requirement for the award of Bachelor of Business Administration of Prestige
Institute of Management, Gwalior. He has worked under our guidance and direction. Her work
is found to be satisfactory and complete in all respect.

Date: Prof. NAVITA NATHANI


(Faculty Guide)
ACKNOWLEDGEMENT

It is a great pleasure and privilege for me to present report entitled “FINANCE ASPECT OF
DOMINO’S PIZZA AND COMPARATIVE STUDY BETWEEN PIZZA HUT AND
DOMINO’S” I would like to express my sincere gratitude to Prof. NAVITA NATHANI who
has very kindly guided me for this project report. I extend my gratitude towards my institute
Prestige Institute of Management, Gwalior for helping me to successfully complete the project
work.
INDEX

 History of the Organization & Objective


 Organizational Structure
 Financial Performance
 Material Cost Control
 Production & Operations
 Marketing
 Strength & Weakness of the Organization.
 Suggestion
 Special Point
 Names of the CEO/MD/Department Head

Chapter -1

 Introduction

Chapter –II

 Objective of The Study

Chapter –III

 Result & Discussion

Chapter – IV

 Suggestion

Chapter –V

 Conclusion
I. INTRODUCTION

1.1 Introduction

This report is based on service comparison of pizza hut and dominos and also to analyze
financial aspect of Domino’s pizza. This report is based to test the quality of service and
comparison between two pizza Houses. The fast food industry of India is experiencing
phenomenal growth and is one of the fastest growing sectors in the country, with the
compounded annual growth rates of the market crossing 25%. Further, on the back of changing
and busy lifestyle, fast emerging middle class population and surging disposable income, the
industry will continue to grow at a pace in coming years. It now accounts for roughly half of all
restaurant revenues in the developed countries and continues to expand there and in many other
industrial countries in the coming years. But some of the most rapid growth is occurring in the
developing world; where it's radically changing the way people eat. People buy fast food because
it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about
fast food industry, its trend, reason for its emergence and several other factors that are
responsible for its growth.

This report provides extensive research and rational analysis on the Indian fast food
industry and tracks the changing dynamics of the market. It features market performance,
key related sectors and competitive landscape of the market. The research study looks into the
market condition and future forecasts, and outlines current trends and analyses. It has been made
to help clients in analyzing the opportunities, challenges and drivers vital to the growth of fast
food industry in India.

For the purpose of this report, Fast Food Industry includes fast food restaurants, teahouses,
coffee shops and juice bars in India.

Consumers will be feeling the impact of the crisis far more over the coming months and will
have to adjust their daily habits and attitudes accordingly. There are already clear signs pointing
in this direction, which are not necessarily detrimental to food retail. In times of economic crisis,
the cocooning effect tends to emerge and this involves consumers focusing increasingly on
activities within their own homes. For example, they will go out less in favor of enjoying
evenings in. These behaviors will impact primarily on the restaurant industry, with the lack of
consumption outside the home made up for by the purchase of food products to be eaten at home,
the research group noted - something which has already been seen in a number of countries.
Although only around half of consumers will actually be affected by the crisis, the situation will
have a major impact on food retail. The various sectors, industries and retail will all be affected
by the economic crisis to varying degrees. There will be losers, but also winners in this
downturn.

1.2 Objective of the study

(i) To find out the comparative analysis between Pizza-hut and dominos-pizza.

(ii) To check out the preferences of the people / or the customers.

(iii) To find out which factors are more preferred by the customers.

(iv) To find out financial soundness of domino’s pizza

1.3 Data Collection

• From the total of 50 respondents

 32 are male respondents


 18 are female respondents.
 These results as the male are leading the sample and female showed less interest in
participating in the study;
 The 18-28 Age-group are more visited Pizza outlets (32person.)
 In occupation side: - More students visited the outlets rather than other occupants(24
students)
II. LITERATURE REVEW

HISTORY OF THE ORGANISATION AND


OBJECTIVE

DOMINO’S PIZZA

Tom Monaghan, the founder of Domino's


Pizza, in his first restaurant somewhere
in the 1960s.

Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the history of
Dominos Pizza is similar to its rival Pizza hut; two brothers started it with borrowed equity in the
sixties. Tom and James Monaghan bought a small Michigan Pizzeria called Dominick's, which
was jointly run by them until James traded his share for a second hand car. Tom revitalized the
image by changing the name to Dominos Pizza .

By the late seventies there were over 200 franchise pizza businesses in the States and Dominos
Pizza was ready to go International. In 1983 Dominos Pizza opened its doors in Winnipeg, and in
the same year opened its one thousandth store. Later that same year Domino's corporate history
was to begin in Australia with its first franchise in Brisbane, on the East coast.
The locations for Dominos Pizza grew quickly from here as they sprung up in all sorts of diverse
places including Bogotá. Despite Domino's Pizza springing up diverse locations, they were still a
very traditional company. Domino's Pizza menu had been kept very simple and streamlined;
they only sold one type of pizza crust which they named the regular pizza. Domino's Pizza dough
was shaped by tossing the dough and pulling it into shape. The pizza menu included just two
sizes of dough, it was not until much later that competition forced them to add a medium and
extra large sized pizza. There were no such things as side orders you could have Pizza, pizza or
Pizza and you could only drink a Coke with it.

In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was introduced,
for the first time in twenty five years the company was being forced to react to market demand.
This move consolidated the financial base and ensured the growth of Domino's Pizza , as the
same year they opened their five thousandth store.

For many years the company had advertised that if the delivery of their pizzas took longer than
thirty minutes then the pizza would be delivered free. This was parodied by the Teenage Mutant
Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the delivery.
The turtles pizza was late and they received a refund of $3 for "being two minutes late, dude!"
However the benefits to Domino Pizza was enormous as millions of kids were to hear the name
of Domino Pizza endorsed on celluloid.

By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the
menu. At the same time the company hit the African continent as they opened a store in Egypt .
By 1996 Dominos Pizza website was launched and the company declared global sales of nearly
$3 billion.

Despite their reluctance to add a wider range menu they have as a company given the pizza
industry many innovations that have now become standard. The belt driven pizza oven was the
invention of Domino Pizza and they began using corrugated cardboard delivery boxes which
were very effective at holding the heat within the pizza during the delivery time. Ever mindful of
the fact that a cold pizza must be about the worst dining experience on earth Dominos pizza
introduced the "Heat Wave," a portable electrical bag system that keeps the pizza hot during
delivery.

By 1997 they had also had an internal modern facelift as their stores were all brightened up and
the company introduced a new logo. Domino Pizza continued to grow exponentially and in 1997
they opened seven stores in one day but on 5 different continents.

In 2004, Super Bowl Sunday was the most hectic


pizza delivery day of the year when Dominos Pizza
sold over a million pizzas, which was an increase of
42 percent on their normal Sunday trading volume.
As the company continues to grow so rapidly it is just
as well the practice of adding a dot onto the logo was
discontinued after three outlets as Dominos Pizza
now has over seven thousand outlets globally.
The Domino's Pizza Logo

DOMINO’S PIZZA TIMELINE

1960s

Tom Monaghan and his brother James purchase "DomiNick's," a pizza store in Ypsilanti,
Michigan. Monaghan borrowed $500 to buy the store. James trades his half of the business to
Tom for a Volkswagen Beetle. Tom Monaghan is sole owner of company, and renames the
business "Domino's Pizza, Inc." The first Domino's Pizza franchise store opens in Ypsilanti,
Michigan.

1970s

Despite its high turnover, Domino's was $1.5 million in debt. By 1970, its creditors took action
and 200 lawsuits were filed against it. Monaghan lost control of the company to the banks, only
to have it returned to him 10 months later in worse condition than when they had taken it over.
Monaghan and his wife managed to salvage what was left of the company and once again took
off in pursuit of their dreams.

1980s

In 1983 the company celebrated the opening of its first international store in Winnipeg, Canada.
Domino's Pizza International, which Monaghan called the company's "hope for the future,"
became in part responsible for much of the company's later movement and growth. 1983 also
saw the opening of the company's 1000th store in Colorado Springs, Colorado. After a quarter of
a century of honing its pizza making and delivery systems, Domino's Pizza knew the pizza
delivery business. In 1985 tens of thousands of customers around the world showed their
confidence in the company by ordering 135 million pizzas during that year, an astonishing 69%
increase over the previous year's sales. By 1989 Domino's had opened its 5000th store.

1990s

Domino's Pizza signs its 1,000th franchise. Domino's rolls out Breadsticks, the company's first
national non-pizza menu item. Crunchy Thin Crust pizza is rolled out nationwide. The company
discontinues the 30-minute guarantee and re-emphasizes the Total Satisfaction
Guarantee.Domino's Pizza International division opens its 1,000th store. First store opens on
African continent, in Cairo, Egypt. Domino's launches its web site on the Internet
(www.dominos.com). The company reaches record sales of $2.8 billion system-wide. Domino's
Pizza opens its 1,500th store outside the United States, opening seven stores in 1 day on 5
continents consecutively. Domino's Pizza launches a campaign to update the company logo and
store interior with brighter colors and a newer look.

2000s

Domino's Pizza International opens its 2,000th store outside the United States. Domino's Pizza
celebrates 40 years of delivering pizza and innovation to homes around the world. Domino's
7,000th store opens in Brooklyn, New York. Domino's launches long-term national partnership
with the Make-A-Wish Foundation®. In February 2002, Domino's Pizza acquired 82 franchised
stores in the Phoenix, Ariz., market, making it the largest store acquisition in the company's
history. In August 2002, Domino's kicked delivery up a notch with the introduction of Domino's
Pizza Buffalo Chicken Kickers and marked the creation of a whole new surprising category -
premium chicken delivered right to the door! Domino's launches Domino's Cheesy Dots,
delicious round balls of dough covered in a blend of zesty melted cheeses. Domino's becomes an
associate sponsor for the Drive for Diversity program, a minority driver development program
designed to provide a steady pipeline of well trained and supported minority drivers for the
NASCAR circuit.Domino's Pizza, Inc., the recognized world leader in pizza delivery, begins
trading common stock on the New York Stock Exchange (NYSE) in July 2004, under the new
ticker symbol "DPZ." Domino's announces a three-year partnership with St. Jude Children's
Research Hospital. St. Jude was selected as Domino's "charity of choice" by franchisees and
team members.

2010

After years of languishing near the bottom of consumer taste perception studies,Domino's
proudly boasts its research-backed wins over Papa john,s and pizza Hut in a national taste test of
hand-tossed pepperoni pizza,sausage pizza and extra-cheese pizza chairman and CEO David
A.Brandon steps down as CEO effective March 7 and the Board of Director's Sucessor . elect
j.Patrick Doyle as Brandon's sucessor . Brandon will be retained by the Compan as a Special
adivisor for the remainder of 2010 and continue as a non-executive Chairman of the
Board.Concurrently,the University of Michigan announces Brandon will serve as its next
Director of intercollegiate Athletics. Dominos opened its 9,00th store on March 11.

Domino’s Pizza India Limited


Jubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee
Rights for Domino's Pizza for India, Nepal, Sri Lanka and Bangladesh. The company has been
listed on the Indian bourses recently. Prior to Sep 24, 2009, the company was known as
Domino's Pizza India Limited and underwent a name change, rest of the terms remaining the
same. The promoters of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant
Enpro Private Ltd. Domino's Pizza opened its first store in India in January 1996, at New Delhi.
Today Domino's Pizza India has grown into a countrywide network of more than 300 stores with
a team of over 9,000 people. According to the India Retail Report 2009, we were the largest
Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007
and 2008-2009 in terms of number of stores.

Over the period since 1996, Domino's Pizza India has remained focused on delivering great
tasting Pizzas and sides, superior quality, exceptional customer service and value for money
offerings. We have endeavored to establish a reputation for being a home delivery specialist
capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers
from all our stores around the country.

Domino's vision is focused on " Exceptional people on a mission to be the best pizza delivery
company in the world! ". We are committed to bringing fun, happiness and convenience to lives
of our consumers by delivering delicious pizzas to their doorstep and our efforts are aimed at
fulfilling this commitment towards a large and ever-growing customer base.

Domino's constantly strives to develop products that suit the tastes of our consumers and hence
delighting them. Domino's believes strongly in the strategy of 'Think global and act local'. Thus,
time and again we have been innovating with delicious new products such as crusts, toppings and
flavours suitable to the taste buds of Indian Consumers. Further providing value for money and
affordable products to our consumers has been an important part of our efforts. Our initiatives
such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an
affordable and value for money meal option.

Over a period since 1996, Domino's Pizza India has established a reputation for being a home
delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal
customers from its entire stores around the country. Customers can order their pizzas by calling
the single countrywide "Hunger Helpline" - 1600-111-123 and Domino’s was the first one to
start this facility for its customers.

Domino’s vision is “Exceptional people on a mission, to be the best pizza delivery company in
the world!”. Domino’s is committed to bringing fun and excitement to the lives of our customers
by delivering delicious pizzas to their doorstep in 30 minutes or less, and all our strategies work
for fulfilling this commitment towards our large and ever-growing customer base.
Domino's constantly strives to develop the product that suits the taste of its customers to bring
out the 'WOW' effect (i.e. the feel good factor). Domino’s believes in the strategy of “Think local
and act regional” that is blended with a playful image personified by our "Hungry Kya?"
positioning. Thus, time and again Domino’s has been innovating toppings, suitable to the
tastebuds of the locals and these have been very well accepted by the Indian market, are doing
extensively well in the market. We are constantly in the process of innovating further; we
introduce new topping every 3 –4 months

Domino’s understands customers demand and is constantly developing local flavors


understanding the local sentiments. Also, the ingredients, sauces etc. are made keeping in mind
the taste buds of Indian consumers while retaining the international flavor.

Domino’s constantly strive to make the company an integral part of the lives of the target
audiences by getting involved with the clientele at the emotional level and building long-term
relationship with them. Thus, Domino’s concentrate more on carrying out below-the-line
activities in the area it serves.

Domino’s believe in bringing fun and excitement into the lives of our clientele. We take our
delivery proposition very seriously and our entire corporate ethic is based on it. Domino's is the
recognized world leader in Pizza delivery. But it isn't just about delivering; it's also about giving
back to the community. Domino’s believes that an essential component of corporate
responsibility is to provide support to charitable organizations that benefit the communities
where its employees and customers work and live. Domino’s worldwide is known for its
commitment toward social causes and believes in adding fun to the lives of our customers and
communities it serves.

In India, Domino’s has been associated with the NGO’s devoted to the cause of underprivileged
Children’s. Domino’s conducts Store Educational Tour (SET) for the underprivileged children
time-to-time. Recently this was done in the one of the Domino’s outlet in Delhi and Mumbai
with the underprivileged children from CRY (Child Relief and You) where Domino’s took the
pledge to provide part-time employment to the eligible wards from CRY who are above 18 years,
reiterating its commitment towards social causes. Also, fifty- percent of that day’s first 20
deliveries of the store were given to CRY toward the cause of the underprivileged children. The
children had a gala time while they learned to make and bake pizzas at the store and finally
tasted the sumptuous offerings made by them during the Store Educational Tour.

Domino’s Pizza India also boasts about its commitment to serve its customers on time by
implementing the “30 MINUTES OR FREE” service commitment, they have been able to
achieve this as a result of continuous efforts and dedication of the entire team in improving
operating efficiencies.

Domino’s Pizza India has been consistently rated amongst the top 2 pizza chains worldwide in
the Domino’s family by Domino’s International, in terms of quality of operations. Our pizza
delivery times have also been judged as the best delivery times in the world across all Domino’s.

Dominos pizza Gwalior menu card


KEY INFORMATION

Domino's Pizza, LLC

Type Public (NYSE: DPZ)

Industry Restaurants

Founded Ypsilanti, Michigan, U.S. (1960)


Headquarters Ann Arbor, Michigan, U.S.

Tom Monaghan, Founder


Key people
J. Patrick Doyle, CEO

Products Pizza, sandwiches, pasta, chicken wings, desserts

Revenue ▲ $1.425 billion USD (2008)

Employees 145,000

Website www.dominos.com

Chairman of board of directors CEO, Domino’s Pizza India Ltd

David Brandon Ajay Kaul


(Non Executive) (CEO)

CEO

J. Patrick Doyle
FINANCIAL PERFORMANCE

Domino's Pizza India is beating the downturn, helped by the rising popularity of delivery
services in India and more geographical expansion, the latest being an outlet opened in Gangtok
this week, which on the first day clocked sales in excess of a Rs 1 lakh with 500 to 600
orders.Budgets too have been scaled up. Ad budget, for instance, has been upped by 50% from
last year's Rs 14 crore; as has the training budget, which is up 75% this year. The fast food
industry is Rs 1,800-crore to Rs 2000-crore business, of which, as per our estimates, organised
pizza players market comes to Rs 650 crore, and Domino's dominates this with a 44%
marketshare. Additionally, our company makes everything in-house, including its propriety
recipe dough, at its four commissaries in Delhi, Mumbai, Bangalore and Calcutta.

Today, Domino's is present in 47 cities in India. Last year, we opened stores in 8 to 9 new cities,
this year we have added 15 to 20 cities. Research shows that majority of Indians eat pizzas once
a year, compared with the US, where the average customer eats pizzas a few times a month, even
so because of population, the pizza market is still growing in India by 20%. Domino's has
witnessed a CAGR of 40 to 42% in the past few years. For instance, we were surprised with the
response to our new store in Gangtok, the kind of response we may have expected in Indore,
Gwalior or Nagpur, cities with a much larger population.

Business Performance

In 2008, global retail sales, which are total retail sales at Company-owned and franchise stores
worldwide, increased 1.4% as compared to 2007. This increase in global retail sales was driven
by strong international same store sales growth as well as growth in worldwide store counts,
offset in part by a decrease in domestic same store sales and negative foreign currency
translation impacts on their international sales. In 2007, global retail sales increased 6.6% as
compared to 2006.This increase in global retail sales was driven by strong international same
store sales growth as well as growth in worldwide store counts, offset in part by a decrease in
domestic franchise same store sales Revenues increased $25.6 million or 1.8% in 2007 and
decreased $37.8 million or 2.6% in2008.The increase in revenues in 2007 was largely due to
higher domestic supply chain revenues, due primarily to higher food prices, including cheese.
The decline in 2008 was due primarily to lower Company-owned store and domestic franchise
revenues, driven primarily by Company-owned store divestitures, lower same store sales and
lower volumes in our domestic supply chain operations. Worldwide store counts have increased
from 8,079 at the beginning of 2006 to 8,773 at the end of 2008. This growth in store counts can
be attributed to the growing global acceptance of the brand and pizza delivery concept as well as
the economics inherent in their system which attracts new franchisees and encourages existing
franchisees to grow business. Domestic same store sales decreased 4.1%, 1.7% and 4.9% in
2006, 2007 and 2008, respectively. International same store sales increased 4.0%, 6.7% and
6.2% during the same periods. The Company’s domestic same store sales results in 2006, 2007
and 2008 reflected the underperformance of their product and promotional offerings during those
years, continued challenges in domestic business and a weak consumer environment.
Internationally, same stores sales growth continues to result from the growing acceptance of
delivered pizza around the globe and the successful execution of the concept. It is highly
leveraged primarily as a result of its recapitalization in 2007.As of December 28, 2008,
consolidated long-term debt was $1.7 billion. Since 1998, a large portion of its cash flows
provided from operations has been used to make principal and interest payments on its
indebtedness as well as distributions to shareholders in the form of dividends and stock
repurchases. Its securitized debt requires no scheduled principal payments until anticipated
maturity in 2012. Overall, It believes that its ability to consistently produce significant free cash
flows allows the flexibility not only to service its significant debt but also to invest in their
growing business as well as return cash to shareholders.

Critical accounting policies and estimates

Revenue recognition. They earn revenues through their network of domestic Company- owned
and franchise stores, dough manufacturing and supply chain centers and international operations.
Allowance for uncollectible receivables. They closely monitor their accounts and notes
receivable balances and provide allowances for uncollectible amounts as a result of reviews.
These estimates are based on, among other factors, historical collection experience and a review
of receivables by aging category. Long-lived and intangible assets. They record long-lived
assets, including property, plant and equipment and capitalized software, at cost. For acquisitions
of franchise operations,They estimate the fair values of the assets and liabilities acquired based
on physical inspection of assets, historical experience and other. Insurance and legal matters. If
estimation relating to legal matters proved inaccurate for any reason, they may be required to
increase or decrease the related expense in future periods. At December 30, 2007 and December
28, 2008, They had approximately $8.2 million and $2.9 million, respectively, accrued for legal
matters. For certain periods prior to December 1998 and for periods after December 2001,they
maintain insurance coverage for workers’ compensation, general liability and owned and non-
owned auto liability under insurance policies requiring payment of a deductible for each
occurrence up to between $500,000 and $3.0 million, depending on the policy year and line of
coverage. Income taxes. Their net deferred tax assets assume that they will generate sufficient
taxable income in specific tax jurisdictions, based on estimates and assumptions. The amounts
relating to taxes recorded on the balance sheet, including tax reserves, also consider the ultimate
resolution of revenue agent reviews based on estimates and assumptions. If these estimates and
assumptions change in the future, They may be required to adjust their valuation allowance or
other tax reserves resulting in additional income tax expense or benefit in future periods.
Same Store Sales Growth

Store Growth Activity


KEY FINANCIAL INDICATORS

The selected financial data below, with the exception of store counts and same store sales
growth, have been derived from the audited consolidated financial statements of Domino’s
Pizza,Inc.

Domino's Pizza Inc: Financial Statement

Financial data in U.S. Dollars


Values in Millions (Except for per share items)

  2009 2008 2007 2006 2005


Period End Date 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006
Period Length 53 Weeks 52 Weeks 52 Weeks 52 Weeks 52 Weeks
Stmt Source 10-K 10-K 10-K 10-K 10-K
Stmt Source Date 03/02/2010 02/24/2009 02/26/2008 02/23/2007 03/03/2006
Stmt Update Type Updated Updated Updated Updated Updated
           

Revenue 1,404.06 1,425.11 1,462.87 1,437.32 1,511.6


Total Revenue 1,404.06 1,425.11 1,462.87 1,437.32 1,511.6
           

Cost of Revenue, Total 1,017.08 1,061.85 1,084.02 1,052.79 1,126.31


Gross Profit 386.98 363.26 378.85 384.53 385.29
           
Selling/General/Administrative Expenses, 197.47 168.23 184.94 170.33 186.18
Total
Research & Development 0.0 0.0 0.0 0.0 0.0
Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0
Interest Expense (Income), Net Operating 0.0 0.0 0.0 0.0 0.0
Unusual Expense (Income) 0.0 0.0 0.0 0.0 0.0
Other Operating Expenses, Total 0.0 0.0 0.0 0.0 0.0
Operating Income 189.51 195.03 193.91 214.2 199.1
           
Interest Income (Expense), Net Non- 0.0 0.0 0.0 0.0 0.0
Operating
Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0
Other, Net 56.28 0.0 -13.29 0.0 22.08
Income Before Tax 135.52 82.87 55.56 160.43 173.25
           

Income Tax - Total 55.78 28.9 17.68 54.2 64.97


Income After Tax 79.74 53.97 37.88 106.23 108.28
           
Minority Interest 0.0 0.0 0.0 0.0 0.0
Equity In Affiliates 0.0 0.0 0.0 0.0 0.0
U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0
Net Income Before Extra. Items 79.74 53.97 37.88 106.23 108.28
           

Total Extraordinary Items 0.0 0.0 0.0 0.0 0.0


Net Income 79.74 53.97 37.88 106.23 108.28

           
           
Total Adjustments to Net Income 0.0 0.0 0.0 0.0 0.0
Preferred Dividends

General Partners' Distributions


           
Basic Weighted Average Shares 57.41 57.76 62.18 63.14 66.89
Basic EPS Excluding Extraordinary Items 1.39 0.93 0.61 1.68 1.62
Basic EPS Including Extraordinary Items 1.39 0.93 0.61 1.68 1.62
           
Diluted Weighted Average Shares 57.83 58.34 63.79 64.54 68.65
Diluted EPS Excluding Extrordinary Items 1.38 0.93 0.59 1.65 1.58
Diluted EPS Including Extraordinary Items 1.38 0.93 0.59 1.65 1.58
           
Dividends per Share - Common Stock Primary 0.0 0.0 0.0 0.48 0.4
Issue
Gross Dividends - Common Stock 0.0 0.0 846.4 29.84 26.9
Interest Expense, Supplemental 110.95 114.91 130.37 55.01 48.78
Depreciation, Supplemental 21.8 22.7 24.2 25.5 25.6
           
Normalized EBITDA 161.53 210.52 275.7 243.17 213.41
Normalized EBIT 137.83 182.52 244.9 211.37 181.0
Normalized Income Before Tax 83.85 70.36 106.55 157.6 155.14
Normalized Income After Taxes 50.53 43.65 65.91 100.66 98.17
Normalized Income Available to Common 50.53 43.65 65.91 100.66 98.17
           
Basic Normalized EPS 0.88 0.76 1.06 1.59 1.47
Diluted Normalized EPS 0.87 0.75 1.03 1.56 1.43
Amortization of Intangibles 1.9 5.3 6.6 6.3 6.82

Revenues. Revenues include retail sales by Company-owned stores, royalties from domestic and
international franchise stores and sales of food, equipment and supplies by supply chain centers
to certain domestic and international franchise stores.Consolidated revenues decreased $37.8
million or 2.6% in 2008. This decrease in revenues was due primarily to lower Company-owned
store and domestic franchise revenues, driven primarily by Company-owned store divestitures,
lower same store sales and lower volumes in domestic supply chain operations offset in part by
higher international revenues. These decreases in revenues are more fully described below.

Domestic stores. Domestic stores revenues are comprised of retail sales from domestic
Company-owned store operations and royalties from retail sales at domestic franchise stores, as
summarized in the following table.
Domestic Company-owned stores. Revenues from domestic Company-owned store operations
decreased $36.9 million or 9.3% in 2008. This decrease was due primarily to store divestitures,
primarily to existing franchisees, during 2008 and lower same store sales. Domestic Company-
owned same store sales decreased 2.2% in 2008 compared to 2007. There were 571 and 489
domestic Company-owned stores in operation as of December 30, 2007 and December 28, 2008,
respectively.

Domestic franchise. Revenues from domestic franchise operations decreased $4.2 million or
2.7% in 2008. This decrease was due primarily to lower same store sales and a decrease in the
average number of domestic franchise stores open during 2008. There were 4,584 and 4,558
domestic franchise stores in operation as of December 30, 2007 and December 28, 2008,
respectively. Domestic franchise same store sales decreased 5.2% in 2008 compared to 2007.
20

Domestic supply chain. Revenues from domestic supply chain operations decreased $12.2
million or 1.6% in 2008. This decrease was due primarily to lower volumes, related to decreases
in domestic same store sales and were offset in part by an increase in overall food prices,
including cheese prices. Cheese prices positively impacted revenues by approximately $11.1
million in 2008. International. International revenues are primarily comprised of royalties from
our international franchise stores and sales of food and supplies by international supply chain
centers to certain franchise stores.
Interest income. Interest income decreased $2.6 million to $2.7 million in 2008. This
decrease was primarily due to $1.5 million of tax-exempt interest income that was earned in
2007 on funds received in connection with the Company’s 2007 recapitalization.

Franchisees
The rights to own, operate and franchise branches of the chain owns the master franchisee for
Domino's Pizza in India by Jubilant Group and in Australia, New Zealand,
France, Belgium, the Netherlands and the Principality of Monaco are currently owned
by Domino's Pizza Enterprises, having been sold off by the parent company between 1993 and
2007. The master franchises for the UK and Ireland were purchased by Domino's Pizza Group
(now publicly traded as Domino's Pizza UK & IRL) in 1993.
Major franchises-
 Domino's Pizza Enterprises
 Domino's Pizza UK & IRL
Franchisor has 350 employee(s); 75 employee(s) in franchise department

FINANCE REPORT

CEO REPORT

At the beginning of 2008-09, Domino’s Pizza was aware of the looming uncertainty in the
economic environment and the flow- on effect if may have with consumers, particularly in the
food space. We knew we had the ability to offer great value, through product, service and
image, but what we wanted to do was create a whole new experience for customers which they
may not have expected from number one pizza maker

 22.5% of sales now coming from online ordering.


 Website is ranked number one for “Food and Beverage Restaurants and Catering”.
 France opens its 150th store.33% of stores convert to online ordering in Europe.
 Average delivery time has dropped by more than 21%.
 Choc Lava Cake was a finalist in the Food Magazine Challenge Awards 2009 and has sold
more than 1.5 million units.
 Unassisted brand recognition has increased 35% in France.
 Over the past 12 months Domino’s has created more than 3,000 jobs across Australia and
New Zealand

PERSONAL POLICIY

ECLUB DATABASE
Brand loyalty has also grown signifi cantly with eClub member database. Each month tens of
thousands of people join to receive special Domino’s offers and communication direct to
their email box. With a database reaching into the hundreds of thousands, weekly Electronic
Direct Mail (EDM) pieces have given us the opportunity to target offers to a store’s local
area, resulting in greater loyalty. The growth in our eClub database has also enabled
Domino’s to drive the creative look and feel of EDMs including personalised CEO letters
and themed pieces around new menu items and signifi cant calendar events.

ONLINE ADVERTISING

Greater integration across all media channels for the new menu launch in February 2009
helped increase Domino’s presence in online advertising which resulted in great profi ling
opportunities for online ordering capabilities. All Domino’s banner advertising, including the
successful Choc Lava Cake banner, includes a click through function enabling customers to
place an order immediately after seeing an online banner.

iPHONE

Over the next few months Domino’s will launch a dedicated iPhone application for
online ordering.As our customers and the broader Australian market adopt new technologies,
Domino’s is committed to ensuring we remain at the forefront with new innovations. The
iPhone application will provide customers with greater freedom to order their favourite
Domino’s meal wherever they are. This Australian-first for the pizza industry will help drive
online business and cement the position as the leading innovator.

E-Commerce

In 1999, Domino’s Pizza became the first pizza delivery company in the world to offer
nation-wide internet and interactive television ordering. Delivered pizza can be ordered via
website (www.dominos.co.uk) or via any of the UK’s major interactive TV services.

Future plans

According to Yum! Restaurants International, India is amongst the top five growth markets for
Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident
about expanding its operations in India.

Pizza Hut hopes to increase the number of Pizza Hut outlets in India to 180 by the end of 2008
from the present figure of 130. The expansion programmed will make Pizza Hut the fastest
growing western restaurant chain in India. In addition, Yum! plans Pizza Hut to be in 42 cities by
end of 2007, and 55 cities by end of 2008.

MARKETING OPERATIONS

Domestic stores contribute between 4% to 5% of their retail sales to fund national marketing
and advertising campaigns advertising programs. It also contribute to market-level media
campaigns. These national and market-level funds are administered by Domino’s National
Advertising Fund Inc., or DNAF, not-for-profit advertising subsidiary.
The funds remitted to DNAF are used primarily to purchase television advertising.
DNAF also provides cost-effective print materials to domestic stores for use in local
marketing that reinforce national branding strategy. In addition to the national and market-
level advertising contributions, domestic stores spend additional amounts on local store
marketing, including targeted database mailings, saturation print mailings and community
involvement through school and civic organizations. Additionally, we may from time-to-time
partner with other organizations in an effort to promote the Domino’s Pizzabrand.By
communicating a common brand message at the national, local market and store levels, we
create and reinforce appowerful, consistent marketing message toconsumers. This is
evidenced by successful previous marketing campaign with the slogan “Get the Door. It’s
Domino’s.” and current marketing campaign with the slogan “You Got 30 Minutes.™” Over
the past five years, it estimates that domestic stores have invested approximately $1.4 billion
on national, local and co-operative advertising.

Third-party suppliers

The active relationships of 15 years or more with more than half of major suppliers.
Suppliers are required to meet strict quality standards to ensure food safety. They review and
evaluate suppliers’ quality assurance programs through, among other actions, on-site visits,
third party audits and product evaluations to ensure compliance with standards. They believe that
the length and quality of relationships with suppliers provides them with priority service and
quality products at competitive prices. They currently purchase pizza cheese from a single
supplier. In 2007, the Company entered into a new arrangement with this supplier. Under this
arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the
Company agreed to a five year pricing period during which it agreed to purchase all of its
primary pizza cheese for the Company’s United States stores from this supplier or, alternatively,
pay to the supplier an amount reflecting any benefit previously received by the Company under
the new pricing terms.

Trademarks
It has many registered trademarks and service marks and believe that the Domino’s mark and
Domino’s Pizza names and logos have significant value and are important to business. Its
policy is to pursue registration of trademarks and to vigorously oppose the infringement of
any of its trademarks. It license the use of registered marks to franchisees through franchise
agreements.

Risk Factors

Risks relating to business and industry

1. The pizza category is highly competitive, and such competition could adversely affect
operating results.
2. If it fail to successfully implement growth strategy, which includes opening new domestic
and international stores, then ability to increase revenues and operating profits could be
adversely affected.
3. The food service market is affected by consumer preferences and perceptions. Changes in
these preferences and perceptions may lessen the demand for products, which would reduce
sales and harm business.
4. Increases in food, labor and other costs could adversely affect profitability and operating
results.
5. Not having long-term contracts with certain suppliers, and as a result they could seek to
significantly increase prices or fail to deliver.
6. Shortages or interruptions in the supply or delivery of fresh food products could adversely
affect operating results.
7. Any prolonged disruption in the operations of any of dough manufacturing and supply
chain centers could harm business.
8. Loss of key personnel or inability to attract and retain new qualified personnel could hurt
business and inhibit ability to operate and grow successfully.
9. International operations subject us to additional risk. Such risks and costs may differ in
each country in which we do business, and may cause profitability to decline due to increased
costs.
10. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to
lower revenues and earnings.
11.Earnings and business growth strategy depends on the success of franchisees, and may be
harmed by actions taken by franchisees that are outside of control.

STORE OPERATIONS

Dominos believe that its focused and proven store model provides a significant competitive
advantage relative to many of its competitors who focus on multiple components of the pizza
category, particularly dine-in. It has been focused on pizza delivery for 48 years. Because its
domestic stores and most of their international stores do not offer dine-in areas, they typically do
not require expensive real estate, are relatively small and are relatively inexpensive to build and
equip. Dominos stores also benefit from lower maintenance costs, as store assets have long lives
and updates are not frequently required. Dominos locate its stores strategically to facilitate timely
delivery service to its customers. The majority of domestic stores are located in populated areas
in or adjacent to large or mid-size cities, or on or near college campuses. Domino’s use
geographic information software, which incorporates variables such as traffic volumes,
competitor locations, household demographics and visibility, to evaluate and identify potential
store locations and new markets.
Their simple and efficient operational processes, which they refined through continuous
improvement, include:
Production-oriented store designs
Dominos store is relatively small, occupying approximately 1,000 to 1,300 square feet, and is
designed with a focus on efficient and timely production of consistently high quality pizza for
delivery. The store layout has been refined over time to provide an efficient flow from order
taking to delivery. Its stores are primarily production facilities and, accordingly, do not typically
have a dine-in area.
Product and process innovations
Dominos 48 years of experience and innovative culture have resulted in numerous new product
and process developments that increase both quality and efficiency. These include its efficient,
vertically-integrated supply chain system, a sturdier corrugated pizza box and a mesh screen that
helps cook pizza crust more evenly. The Domino’s HeatWave hot bag, which was introduced
in 1998, keeps pizzas hot during delivery. It also continue to introduce new products such as
Domino’s Oven Baked Sandwiches, which launched in 2008. Additionally added a number of
complementary side items to menu such as buffalo wings, Domino’s Buffalo Chicken Kickers,
bread sticks, cheesy bread and Cinna Stix.
Focused menu
It maintains a focused menu that is designed to present an attractive, quality offering to
customers, while minimizing order errors, and expediting the order taking and food preparation
processes.
Its basic menu has three choices for pizza products:
Pizza type,
Pizza size

Products

The current Domino's menu features a variety of Italian-American entrees and sides. Pizza is the
primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles
and toppings. Additional entrees include pasta bread bowls and oven-baked sandwiches. The
menu offers chicken side dishes, breadsticks and salads, as well as beverages and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to
other fast food restaurants, to ensure efficiency of delivery. Historically, Domino's menu
consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coke as the
only soft drink option.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or pan pizza.
Its introduction followed market research showing that 40% of American pizza customers
preferred thick crusts. The new product launch cost approximately $25 million, of which $15
million was spent on new sheet metal pans with perforated bottoms. Domino's started testing
extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".

Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers,
as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat fillets,
similar to chicken tenders, are packaged in a custom-designed box with two types of sauce to
"heat up" and "cool down" the chicken.

In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese
Steak Pizza. The product launch also marked the beginning of a partnership with the National
Cattlemen's Beef Association, whose beef Check-Off logo appeared in related advertising.
Domino’s continued its move toward specialty pizzas in 2006, with the introduction of its
"Brooklyn Style Pizza", featuring a thinner crust, cornmeal baked in to add crispness, and larger
slices that could be folded in the style of traditional New York-style pizza.

In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked sandwiches
in four styles, intended to compete with Subway's toasted submarine sandwiches. Early
marketing for the sandwiches made varied references to its competition, such as offering free
sandwiches to customers named "Jared," a reference to Subway's spokesman of the same name.

The company introduced its American Legends line of specialty pizzas in 2009, featuring 40%
more cheese than the company's regular pizzas, along with a greater variety of toppings. That
same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned bread bowl
baked with pasta inside,[35] and Lava Crunch Cake dessert, composed of a crunchy chocolate
shell filled with warm fudge. Domino's promoted the item by flying in 1,000 cakes to deliver at
Hoffstadt Bluffs Visitor Center near Mount St Helens.

In 2010, the company changed its pizza recipe "from the crust up", making significant changes in
the dough, sauce and cheese used in their pizzas. Their advertising campaign admitted to earlier
problems with the public perception of Domino's product due to issues of tale.

Efficient order taking, production and delivery


Each store executes an operational process that includes order taking, pizza preparation, cooking
(via automated, conveyor-driven ovens), boxing and delivery. The entire order taking and pizza
production process is designed for completion in approximately 12-15 minutes. These
operational processes are supplemented by an extensive employee training program designed to
ensure world-class quality and customer service. It is their priority to ensure that every Domino’s
store operates in an efficient, consistent manner while maintaining their high standards of food
quality and team member safety.
Comprehensive store audit program
They utilize a comprehensive store audit program to ensure that their stores are meeting both
their stringent standards as well as the expectations of their customers. The audit program
focuses primarily on the quality of the pizza the store is producing, the customer service the store
is providing and the condition of the store as viewed by the customer. They believe that this store
audit program is an integral part of their strategy to maintain high standards in their stores.

THE SERVICE OPERATIONS TO SERVE THE CUSTOMERS INSIDE THE


GWALIOR FAST FOOD :
I. They asked the customers to have a seat.
II. Give them their menus.
III.The order is served within 10 to 15 minutes.
IV.They provide self service operation.
V. They also provide CRM Coupons.
VI. They give buy one get one free offer to customers.
VII. As each interaction is unique, Domino’s people job is day to day & from minute to minute.
So they told us that customer contact is the key to run a successful operation.
VIII. They said that communicating clearly with people of all ages is highly regarded.
IX. To give quality services to customer inside they groom themselves well in personal
presentation.
X. They take care of both verbal & non-verbal communication like listening & answering & how
domino’s people make use of proper space & time
XI. They have commitment to professional service.
XII .An understanding of customer needs & expectations.
XIII. Have sound knowledge of all menu & beverages items & to ensure prompt efficient
service standard operating procedures. xiv. Maintain flexible & willing attitude, service guests
using friendly, polite manner at all times.
XV. They constantly check that assigned section is clean and all tables are set up properly in
order to treat customer inside the Domino’s well. reasonable and the foods are Hygienic and Low
fat.

BULK ORDERS:
Dominos Pizza Gwalior also takes bulk orders for its corporate customers as well as for any big
gathering. Any order can be placed 2 days in advance to avoid inconvenience. Payment can be
made in cash or by Cheques in favor of "Dominos Pizza India ltd". Dominos involves itself in
various community activities like blood donation campaign, clean up drive etc. They arrange for
different competition like painting, essay, junior pizza making etc at Their store level for
children. They also cater to different college functions/events depending upon its location.

HOUSEKEEPING OPERATIONS INSIDE THE RESTAURANT


For housekeeping Domino’s gwalior use UT service, they provide proper check on cleanliness of
the restaurant; maintain cleanliness of the washroom etc.a.They make sure that all fittings are in
good working order. They check that all supplies such as toiletries & minibar stock have been
replenished. Ensuring that tables & other areas are cleaned & polished. Make sure that
furnishings & fittings including light fittings are clean & in good condition. Ensure windows are
cleaned regularly. They also told us that in housekeeping is also responsible for décor, the
selection of furnishings & wall coverings being very important. Thousands of rupees are spent
on décor & these decisions are not taken lightly. in housekeeping operations there is flexibility in
there restaurantMaintenance Housekeeping in the wet areas:Top to bottom, all corners and
edging is done on carpeted and non-carpeted floors. Everything ismoved on the counter, cleaned
behind it, the items cleaned and moved back. Not only are sinksmade to shine, but also all the
tight spaces that trap dirt are cleaned. The outsides, top to bottom,
Of all large appliances in the kitchen are cleaned. Light fixtures are dusted; windowsills,
baseboards, and other dusting in the kitchen are done. Kitchen cabinets are cleaned for
fingerprints and food spills that have occurred recently and can be recovered with wiping a wet
or damp cloth. The floor is edged for crumbs with a vacuum, then vacuumed thoroughly and
washed. Food that is stuck to a floor is not ignored. On an as-need-basis,
the floor is washed by
hand around the edges.They can do the whole package pulling out a
fridge or oven wiping them clean and everything in between All of
Their work is 100% guaranteed. If customers are not happy with
Domino’s cleaning, simply call them within 24 hours. During summer
seasons their sales increases, Number of staff is more as compared to
winter seasons Total number of staff is around 35-40, Income per month
is around 35 lakhs.

I
Equipment
Fresh and delicious pizza has always been a priority at Domino's Pizza.
Domino's was the first to use a fibre glass tray for dough, which
simplified dough handling and ensured better preservation. Domino's was the innovator behind
the sturdy, corrugated pizza box, which
prevents moisture from making the box soggy and stops the cheese sticking to the top during
delivery. A delicious, crisp crust is one of the most important parts of the pizza. In search of the
perfect crust, Domino's developed the pizza screen, a mesh tray that helps cook the pizza base
moreEvenly than a tray made of wood or stainless steel. Today it's hard to miss pizza delivery
cars -thanks to Domino's Pizza. Domino's invented the 3-D car-top sign, which is currently used
by avariety of industries, including taxis and driving schools.

ACHEIVEMENT AND AWARDS

Domino's Pizza India won the GOLD FRANNY award for the fastest growing Domino's
franchisee in world for 3 consecutive times - 2006 2007 & 2008, presented by Domino's Pizza
Inc.

Jubilant FoodWorks Ltd won the award for "Brand Excellence in service / hospitality industry"
in CMO Asia awards by CMO council.

Leading industry publication Pizza Today magazine named Domino’s Pizza "Chain of the Year"
in 2003.

2009 - Domino's won the top 25 Marketers of 2009 award presented by a leading Marketing
Journal Pitch and exchange4media

2009 - Recognized as one of the 10 brands that have changed the consumer behavior and set new
trends in last decade, presented by Brand reporter & agency faqs
2008: Dominos Pizza India won 1 International and 2 Asia Pacific awards

'Trainer of the year' - Domino's International.

'Supervisor of the year' - Asia Pacific

'Rookie Manager of the year' - Asia Pacific

2007: Dominos Pizza India won 1 International and 3 Asia Pacific awards

'Supervisor of the year'- Domino's International.

'Rookie Manager of the year' - Asia Pacific

'Manager of the year' - Asia Pacific

'Trainer of the year' - Asia Pacific

2006: Dominos Pizza India won 1 International and 2 Asia Pacific awards

'Manager of the year' - Domino's International.

'Supervisor of the year' - Asia Pacific

'Rookie Manager of the year' - Asia Pacific

2004 / 2005 / 2009 Franchise Award - Award for Excellence in Franchising and Business
Development. Dominos Customer Service Food and Beverages

2006/2007/2008 Distinguished Achievement Award of the International Franchising Association


presented to Dominos Pizza India

CEO Awards- Ajay Kaul (CEO India Subcontinent - Dominos Pizza India)

Mr. Ajay Kaul won CEO with HR Orientation in Asia's Best Employer Brand Awards - 2010 by
World HRD Congress.

2010- Golden Spoon Award - Most Admired Food Professional Of The Year In Food And
Beverages
2009- Star Youth Achievement award

III. COMPARITIVE STUDY BETWEEN DOMINO’S PIZZA AND PIZZA


HUT

PIZZA HUT INDIA

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has
captured a dominant and significant share of the pizza market and has maintained an impressive
growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India;
and employed nearly 4,000 people by end of 2004. Yum! has invested about US$ 25 million in
India so far; this is over and above investments made by franchisees.

Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum!
Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John Silver’s
restaurants worldwide. Yum! Generated more than US$ 25.9 billion in worldwide sales in the
year 2003, and has more than 33,000 restaurants in over 100 countries.

Market share

Pizza Hut is believed to have close to 50 per cent market share of the organized pizza-retailing
segment in India.

Financial performance

According to an article in Financial Express, the market size of the pizza segment is around US$
87 million and currently growing at the rate of 15 per cent to 17 per cent per annum. According
to Pizza Hut sources, most of their outlets are financially successful, encouraging further
expansion. In India, the average investment for each outlet is US$ 275,000-335,000 and is borne
by the franchisee.
The 6000 corer fast food retail industry is mainly dominated by the multinational players
and the key players which are active in the research of the food retailing include:

• McDonalds
• Wendy's
• Papa John's
• International and California Pizza Kitchen

Leveraging the India Advantage : International brand with an Indian heart

Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at
Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even
opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious
community, whose members prefer not to eat at places where meat is served.

Offering more than the international menu

International food chains typically offer only a few localised products in other parts of the world.
However, Pizza Hut’s local menu is as large as the international one. According to Pizza Hut, the
Indian food heritage is very rich, and hence Indians like local flavours. The Tandoori range of
pizzas, which was developed locally, has a menu mix of over 20 per cent.

Indigenous sourcing of raw materials

Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a
local company Dynamix Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese. The
landed cost of imported mozzarella comes to US$ 3.3 - 3.5 per kilogram. The domestic price,
however, works out to US$ 2.99 - 3.1 per kilogram. Pizza Hut is adding to the bottom line by
localising equipment as well as by paying attention to inventory replenishment, which has been
reduced from 60 to 30 days.
IV. SUGGESTION / RECOMMENDATION

 For Dominos

• Increase varieties in Pizza’s.

• Focus on location of the outlets.

• Increase the quality of Pizza’s

• Make good ambiance in outlets

• Should focus more on market zing itself confidently.


 For Pizza-Hut

 Try to attract more number of Ladies customers.

 Should focus on Low price customers.

• Make the door step services better

V.SUMMARY

From the comparative study of these two Fast food chains Pizza hut and Domino’s we
understand that on which front, which company is weaker than others. As we know that Pizza
hut is the largest pizza restaurant company in the world with 12000 outlets in 90 countries and it
enters in INDIA in 1996where as The Domino’s pizza enters in INDIA in 1995 and now it has
220 outlets in India. But after all Domino’s which has First mover advantage and customer base;
cannot succeed as most favorable brand in between the people of those who likes Pizzas.

From this study we know that pizza hut makes its number 1 position in between peoples. And in
the preference side people also prefer Pizza hut rather than dominoes. In price category the price
of the pizza is less in Domino’s rather than pizza-hut but once again the quality of pizza and the
conditions which is imposed by the dominoes for door-steps services makes domino’s less
attractive.

VI. CONCLUSION
Keeping up the sentiments of Indian customers and services offered by Pizza-houses and
Keeping our study focused on some of the key –areas of sensitivity of customers preferences
(analysis of factors which affects the preferences).

We come to a conclusion that: -

Pizza –hut is preferred over dominos in terms of

 Varity of Pizza’s

 Good ambience

 Services offered

 Quality of pizza’s

 Location of the Outlet

 Waiting time in the outlet

Domino’s is being preferred over pizza-hut in terms of: -

 Door step services

 Low pricing

So we can say that due to these qualities Pizza-hut dominates Dominos –pizza

In different areas and capture the market share and gain rapidly.

BIBLIOGRAPHE

Books, Magazine & Journals/ Newspaper:


(i)Domino's Pizza Delivers 8,000th Store". QSR Magazine. 27 January 2006

(ii) Joshua Ozersky (29 January 2010). "Domino's Mea Culpa and America's Pizza Passions".
Time Magazine.

Internet:

www.dominos.co.in
www.google.co.in

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