Competitions

CAT Prep

Upskill

Placements

MBA Co'26

RTI Response

Rankings

Score Vs. %ile

Salaries

Campus Tour

Why Is Domino’s Pizza Losing Its Appeal In India?

Aug 23, 2018 | 3 minutes |

Join InsideIIM GOLD

Webinars & Workshops

Compare B-Schools

Free CAT Course

Take Free Mock Tests

Upskill With AltUni

CAT Study Planner

Final 19 Days to CAT 2024 Test-26

Participants: 141

Final 20 Days to CAT 2024 Test-26

Participants: 179

Final 21 Days to CAT 2024 Test-25

Participants: 145

Final 22 Days to CAT 2024 Test-24

Participants: 165

Final 23 Days to CAT 2024 Test-23

Participants: 103

Final 24 Days to CAT 2024 Test-22

Participants: 154

Final 25 Days to CAT 2024 Test-21

Participants: 144

Final 26 Days to CAT 2024 Test-20

Participants: 195

Final 27 Days to CAT 2024 Test-19

Participants: 171

Final 28 Days to CAT 2024 Test-18

Participants: 169

Final 29 Days to CAT 2024 Test-17

Participants: 175

Final 30 Days to CAT 2024 Test-16

Participants: 193

Final 31 Days to CAT 2024 Test-15

Participants: 184

Final 32 Days to CAT 2024 Test-14

Participants: 192

Final 33 Days to CAT 2024 Test-13

Participants: 194

Final 34 Days to CAT 2024 Test-12

Participants: 227

CAT 2017 VARC SLOT- 2

Participants: 311

CAT 2017 DILR SLOT- 2

Participants: 155

CAT 2017 VARC SLOT- 1

Participants: 300

CAT 2017 DILR SLOT- 1

Participants: 106

CAT 2017 QUANT SLOT 1

Participants: 152

CAT 2017 QUANT SLOT 2

Participants: 69

CAT 2018 QUANT SLOT 2

Participants: 67

CAT 2018 QUANT SLOT 1

Participants: 107

CAT 2018 DILR SLOT- 2

Participants: 57

CAT 2018 DILR SLOT- 1

Participants: 81

CAT 2018 VARC SLOT- 2

Participants: 203

CAT 2018 VARC SLOT- 1

Participants: 296

Final 35 Days to CAT 2024 Test-11

Participants: 154

Final 36 Days to CAT 2024 Test-10

Participants: 133

Domino’s franchise, in India, is under fire. Jubilant Foodworks, who holds master franchise for Domino’s in India & a few other countries, recently reported disappointing numbers. Result: Its stock has borne the brunt of its lackadaisical performance. Let me share with you possible reasons for Domino’s losing its appeal among Indian customers:
  1. Rapid expansion of stores: Domino's has opened stores rapidly, which has lead to an increase in revenue; but it has also resulted in an inadvertent side effect – the new stores, on many occasions, have cannibalised into existing store’s business!
  2. Mandatory price increase: The company has regularly taken mandatory price increase – necessitated, no doubt, due to increase in input cost. This, of course, got reflected in expanded Gross Margin. But it also pushed up customer price, so much so that Domino’s appears to be expensive!
  1. Order Collectors: People at Domino’s who collect orders merely collect orders & move on to collecting the next order! They do not act as ‘authentic consultant to customers!
  2. Delivery boys: On at least 2 occasions, our order was delivered late. The delivery boy, on at least one occasion, wanted to cut a deal with us - he wanted to us to invoke the late delivery penalty clause with a caveat – he would pocket a part of the penalty for delivering late! What did I do? I counselled him not to engage in an unethical behaviour because it will bring disrepute to Dominos brand! He expressed contrite, but I was not sure if he would have mended his ways
Do you agree with this analysis? Do feel free to share your perspective!