For Dominos Pizza in India, delivery SSSG is higher than dine-in SSSG.
Demand environment remained challenging during the quarter; sales were also impacted by early onset of Ramadan and delayed launch of new products. Volume growth was negative; will not take price hikes for next few quarters and let volumes recover. Employee expenses grew on new-store addition and high wage inflation; total employee count has reduced on strategy to optimise per store employee count.
The company plans to gain new customers through innovation in its menu; it launched Pizza Mania Extremes range of Pizza in Q4 to target value-conscious customers, and launched Burger Pizza in Q1 to cater to Burgers and Sandwiches segment.
Renegotiated rental contracts for short term for some Dominos and Dunkin Donuts outlets and this should help moderate rise in rentals in short term
Dunkin’ Donuts losses on FY16 EBITDA margins is 250bps. Launched Dunky Doos donuts and Big Joy Burgers in Dunkin’ Donuts. Plans to open 130-140 Dominos and will open 15 Dunkin’ Donuts outlets in FY17 (cutback from 20 planned earlier) and will focus on profitability of these restaurants
