Jubilant FoodWorks would invest Rs 750 crore in capital expenditures in FY23

14 Jul 2023 , 12:32 PM

This fiscal year, Jubilant FoodWorks, the company that runs the Domino’s Pizza brand in India, aims to invest Rs 750 crore in capital expenditures for the opening of about 220 stores and other purposes.

In order to reach 50 locations, the pizza chain wants to open 30 to 35 Popeyes restaurants in the current fiscal year, according to Sameer Khetarpal, MD and CEO of Jubilant FoodWorks, who talked to PTI. There are currently 18. ‘In a year, we invest between Rs 200 and Rs 250 crore in new factory construction and roughly Rs 500 crore in retail. Approximately Rs 700–750 crore in capital expenditures annually.

We intend to open 32 to 35 Popeyes and 200 to 220 Domino’s restaurants this year, he told PTI. Domino’s Pizza Inc. has granted Jubilant FoodWorks exclusive master franchise rights to build and run the Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal.

However, operations have not yet begun in Nepal. Over 1800 Domino’s restaurants are being operated by the corporation across 393 cities. According to Khetarpal, the company owns every single store and has no plans to adopt any other business model. Our model is to own and operate at the firm level because we receive a very strong return on capital and our shareholders receive very good returns, he explained.

In FY 23, Jubilant FoodWorks recorded operational revenues of Rs. 5096 crore and a bottom line of about Rs. 403. Without directly responding, he was asked about the revenue outlook for this fiscal year and stated that the food services sector has been rising at a rate of 8 to 9% annually. When asked about the impact of rising commodity prices on product costs, Khetarpal responded that the cost of cheese, which is one of the ingredients with the highest unit cost, had reached a decadal high.

However, he insisted that there are currently no intentions for the corporation to raise the prices of its products. The increase in commodity prices is being absorbed by the rising internal effeminacies. Meanwhile, Jubilant FoodWorks today declared Popeyes, the renowned US fried chicken juggernaut, would open in Hyderabad.

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