NEPAL – Food services company Jubilant Foodworks (JFL) has received approval from its board to set up a subsidiary to run Domino’s Pizza business in Nepal.
JFL is the exclusive master franchise to develop and operate the Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal.
JFL also has franchise rights of the American multinational chain of fried chicken fast food restaurants Popeyes’ for the Indian market.
“The Board of Directors of Jubilant FoodWorks International Luxembourg, a step down wholly owned subsidiary of the Company on November 21, 2022, has inter-alia approved the incorporation of a wholly owned subsidiary company in Nepal,” the company said in a regulatory filing.
The company said the subsidiary will be set up under Jubilant FoodWorks International Luxembourg and shall have the exclusive right to develop and operate Domino’s Pizza stores in the territory of Nepal.
The company has not yet decided on the name of the subsidiary.
The board has also approved an internal restructuring of its overseas subsidiaries, where certain overseas subsidiaries of the company will be held under Jubilant FoodWorks International Luxembourg.
The shares held by JFL in — Jubilant FoodWorks Lanka, Jubilant FoodWorks Bangladesh, and DP Eurasia – will be transferred to Jubilant FoodWorks International Luxembourg.
Recently, the operator of fast-food chains Domino’s Pizza and Dunkin’ Donuts in India reported a 9.76 percent increase in its consolidated net profit at Rs 131.52 crore for the second quarter that ended on September 30, 2022.
Its profit rose to 1.32 billion Indian rupees (US$16.12 million) from 1.2 billion rupees a year earlier, as dine-in and takeaway channels combined witnessed strong year-on-year growth.
The revenue from operations during the quarter under review was at Rs 1,301.48 crore, up 16.6 percent, as against Rs 1,116.18 crore of the corresponding period a year ago.
“The increase in revenue was driven by Like-for-Like growth of 8.4 percent and healthy performance of new stores. Dine-in and Takeaway channels combined witnessed strong year-on-year growth, while the Delivery channel registered handsome growth on a high base,” said JFL in its earnings statement.
During the quarter, JFL continued its expansion and opened 76 new Domino’s stores taking the network strength for Domino’s in India to 1,701 stores.
The company noted that it entered 22 new cities during the quarter to expand its reach to 371 cities across India.
In addition, it opened one new Dunkin’, bringing the number down to 24 after closing2 restaurants earlier. JFL was operating 20 restaurants under its new QSR Brands – Hong’s Kitchen and Ekdum!
In Sri Lanka and Bangladesh, JFL registered system sales growth of 37 percent and 42 percent, respectively, having opened 4 new stores taking the network strength to 40 stores, in Sri Lanka and 11 stores in Bangladesh after the addition of 1 new outlet.