Dominos Delivery Time Reduced: Domino’s reduces delivery time to 20 minutes across multiple locations:

Dominos Delivery Time Reduced: Domino’s reduces delivery time to 20 minutes across multiple locations:

Domino’s, which pioneered 30-minute delivery, has reduced delivery time to 20 minutes in multiple locations with high store density, as speedy deliveries intensifies among players and online platforms.

“Opening of new stores in existing cities help improve customer experience like 20-minute delivery which is driven by density of stores in a region,”

Foodworks Ltd () said in a post second-quarter earnings management commentary.

JFL operates Domino’s Pizza and Dunkin Donuts. While JFL had tested 20-minute deliveries pre-Covid, now it has implemented the same in cities where it has higher density of outlets. The management did not specify when it plans to take the deliveries to 20-minutes nationally, across all locations where it delivers.

JFL, the country’s largest organised foods services chain, said in a second quarter exchange filing on Wednesday that it opened 60 new stores and registered 7.2 million app downloads in the September quarter, the highest in a single quarter, as deliveries continued to outpace dine-ins despite reopenings of restaurants and malls amid the early stages of the second wave of the pandemic.

Food delivery and search platforms Swiggy and Zomato are already pushing ‘quick deliveries’ as a key differentiator. And among grocery platforms too such as Grofers, Dunzo and BigBasket, super fast deliveries of 10- or 20-minute deliveries have become a competitive edge.

Analysts say for quick service restaurant (QSR) chains, speedy deliveries could be a core differentiator. Edelweiss Securities executive VP Abneesh Roy said: “Within QSRs, 20-minute deliveries can be a key differentiator to push demand further. But replicating super quick delivery time would be tough to replicate by others; Domino’s has store density as well as a significant delivery fleet of their own.”

The food services chain on Wednesday reported net profit increase of 58% to Rs 121.5 crore. Revenue from operations in the quarter stood at Rs 1,116.19 crore, an increase of 36.6% over the corresponding year ago period, on the back of strong momentum in delivery and takeaway channels.

JFL chief executive Pratik Pota said in the earnings statement: “Notwithstanding the operating challenges and inflationary headwinds, we delivered robust topline growth and record new store openings.”

JFL management highlighted that the number of orders recovered back to pre-Covid levels by the end of the quarter, led by mobility-led recovery in dine-in.

Domino’s total store network in India is now 1,435 stores and management highlighted the market opportunity of 3,000 stores, citing runway for store expansion in both large and small cities.

Analysts at ICICI Securities wrote in a post earnings report: “Performance of delivery and takeaway channels mitigates the still sluggish dine-in. The intent and potential to leverage data analytics possibly give a glimpse that JFL can reposition as a food-tech platform.” The report cited inflation as a potential headwind and key downside risk, adding that management is focusing on premiumisation to improve average ticket size and enhance business efficiencies.

Last month, JFL acquired a 25% stake in nutrition start-up Wellversed Health. Wellversed Health’s portfolio includes specific nutrition and dietary products such as keto, gluten-free, vegan, diabetic and immunity products.

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