Starting a Domino’s franchise in India can be a lucrative business opportunity for aspiring entrepreneurs. With its strong brand presence and growing demand for fast food, Domino’s offers a promising venture. This blog will cover the history of Domino’s, investment requirements, profit margins, franchise formats, requirements, challenges, and the application process.
History of Domino’s
Domino’s started out small, with just one store in Ypsilanti, Michigan, in 1960. Over the years, it has grown to become one of the most recognized and leading pizza brands in the world. In 1983, Domino’s opened its first international store in Winnipeg, Canada, and its first store outside North America in Queensland, Australia. The Noid, Domino’s No. 1 enemy, appeared on TV screens across the U.S. in 1986, becoming a recognized antihero and saboteur of quality. By 1989, Domino’s introduced its first new product, Handmade Pan Pizza, and opened its 5,000th store worldwide.
In 1992, Domino’s rolled out breadsticks, its first national non-pizza menu item, followed by Buffalo Wings in 1994. During the 1990s, Domino’s entered 40 international markets, including Eastern Europe and Africa, and opened its 1,000th international store. In 1998, founder Tom Monaghan announced his retirement and transferred ownership of the company to Bain Capital Inc.
Domino’s Pizza Inc. became a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol DPZ in 2004. The company introduced online and mobile ordering in 2007, followed by the launch of Domino’s Tracker® in 2008, allowing customers to track their orders online. In 2009, Domino’s revamped its pizza recipe, launching its “new and inspired pizza.”
In 2011, Pizza Today Magazine named Domino’s its “Chain of the Year” for the second consecutive year. The company unveiled its new logo and “pizza theater” store design in 2012, bringing the art of pizza-making to the forefront. Domino’s introduced Pizza Profiles on dominos.com in 2013, allowing customers to save their favorite orders. In 2015, Domino’s launched the DXP™ (Delivery Expert), a specially designed pizza delivery vehicle, and unveiled AnyWare, a suite of innovative technology for ordering.
Domino’s and Ford teamed up in 2017 to explore the role of self-driving vehicles in pizza delivery. In 2020, Domino’s introduced Carside Delivery®, a contactless carryout option. By 2022, Domino’s had rolled out over 800 custom-branded 2023 Chevy Bolt electric vehicles, making it the largest electric pizza delivery fleet in the U.S. In 2023, Domino’s launched its Emergency Pizza program, offering customers a free medium two-topping pizza when they need it most.
Investment Required for Domino’s Franchise
The investment required for a Domino’s franchise in India varies based on the store model you plan to open. An investor must have the ability to invest approximately INR 1.25 Cr (INR 125 Lacs) or more, as this is the estimated minimum investment required for a Domino’s Sub Franchise store. This investment is over and above the property that you may own or plan to lease.
This includes the franchise fee, which is typically around INR 25 lakhs, as well as the costs associated with setting up the store, equipment, inventory, and other operational expenses. It’s important to note that these figures are estimates and subject to change. It’s always recommended to reach out to Domino’s directly for the most up-to-date information and detailed requirements.
Investment Breakdown:
- Total Investment: Approximately INR 1.25 Cr (INR 125 Lacs) or more
- Franchise Fee: INR 25 lakhs
- Equipment and Setup: INR 50 lakhs
- Initial Inventory: INR 10 lakhs
- Marketing and Advertising: INR 10 lakhs
- Working Capital: INR 30 lakhs
Additional Benefits:
- Brand recognition and established customer base
- Comprehensive training and support
- Marketing and promotional assistance
Disclaimer: The investment figures provided are estimates and may vary. Please contact Domino’s directly for the most accurate and up-to-date information.
Domino’s Franchise Profit Margin
Domino’s franchises can be highly profitable due to the brand’s popularity and efficient operations. The average profit margin ranges from 15% to 20%. Break-even typically occurs within 2 to 3 years, depending on location and management efficiency.
Pizza was first created as an inexpensive, delectable, fast cuisine in Naples, Italy, and has since garnered many followers in India as well. Pizza consistently ranks at the top among the dishes that people of all ages prefer, regardless of the occasion—be it a family reunion, a relative’s party, a routine day, or another. Therefore, starting a Domino’s outlet will be very beneficial because the brand position of the outlet will allow you to make a sizable profit. You can quickly earn monthly profits of up to 2-3 lakhs INR if you also guarantee delivery services.
The pizza industry is not showing any signs of going down, and they are even adding new flavors to keep up with the changing preferences of the customers. If you talk about sales, Domino’s was declared the largest pizza seller in 2018. Since then, Domino’s has increased its franchise cost to 50 lakhs INR for traditional outlets and 30 lakhs INR for non-traditional outlets.
Domino’s Franchise Formats
Domino’s offers several franchise formats to suit different locations and investment capacities:
- Traditional Stores: These outlets are situated in buildings that provide ample space for parking vehicles of both customers and delivery persons. Traditional outlets include big buildings or even shopping malls. Such stores only sell authorized products via delivery or takeout services.
- Non-Traditional Stores: These stores are located in non-traditional buildings such as airports, stadiums, office buildings, and toll roads. They mainly provide takeaway services, but dine-in facilities are an exception in some of these outlets.
- Transitional Stores: These outlets are located in areas with fewer customers compared to other outlets. They have a slightly different menu customized according to the location and regional taste of the people residing in that locality.
Irrespective of the type of store, Domino’s pizza franchise can easily gather many customers due to its huge brand name. Each store provides a Domino’s pamphlet with a price convenient for the customers to pick out the best-selected option for them. The menu includes different kinds of pizzas, pasta, tacos, garlic bread, fries, desserts, and beverages.
Requirements for Domino’s Franchise
The specific requirements may vary depending on the location and other factors, but here are some general guidelines to consider:
- Store Size: The recommended minimum store size for a Domino’s Pizza franchise in India is typically around 600 to 2,000 square feet. This includes both the front-of-house area for customers and the back-of-house area for food preparation and storage. The space needed for a Domino’s outlet depends on its type:
- Dine-in Restaurant: Ranges from 800 to 2,000 square feet.
- Delivery and Carryout Store: Requires 400 to 1,000 square feet.
- Express Outlet: Occupies 200 to 400 square feet, designed for high-traffic areas.
- Seating Capacity: While Domino’s Pizza is primarily known for its delivery and takeout services, many locations also have seating areas for customers who prefer to dine in. The seating capacity can vary, but a typical range is around 20 to 30 seats.
- Kitchen Equipment: As a Domino’s Pizza franchise, you will need to have the necessary kitchen equipment to prepare and cook pizzas. This includes ovens, dough mixers, refrigeration units, and other essential equipment. The specific requirements for equipment may be provided by the franchisor.
- Storage Space: In addition to the kitchen equipment, you will also need sufficient storage space for ingredients, packaging materials, and other supplies. This may include walk-in refrigerators, freezers, and shelving units.
- Parking: It is important to consider the availability of parking space for customers, especially if you are planning to have a dine-in option. Having convenient parking can enhance the overall customer experience.
- Documents & Licenses: To open a Domino’s franchise in India, certain documents and licenses are typically required. Here are some common documents and licenses that may be necessary:
-
- Address Proof
- Existing Business Proof
- Business Registration
- Aadhar Card
- PAN Card
- Character Certificate (PCC)
- Report of Business Turnover (last three years)
- GST Number
- Insurance
- FSSAI License
- Photos of Property (right, left, and front view)
- Property Paper (area; owned or leased)
- EPF/ESIC
- Sub-Franchise Agreement
- Audit Report (if a company)
It is worth noting that these are general guidelines, and you should consult with Domino’s Pizza or the franchisor for specific requirements and recommendations for your location. Additionally, local regulations and building codes may also impact the space requirements for your franchise.
Challenges Involved in Domino’s Franchise
Starting a Domino’s franchise comes with its own set of challenges:
- Competition: High competition from other fast-food chains.
- Operational Costs: Managing operational costs and maintaining profitability.
- Staff Management: Recruiting and retaining skilled staff.
- Supply Chain: Ensuring a consistent supply of quality ingredients.
How to Apply for Domino’s Franchise
Here’s a step-by-step guide to applying for a Domino’s franchise:
- Initial Research: Understand the market and assess the feasibility.
- Contact Domino’s: Reach out to Domino’s India through their official website or customer service.
- Application Process: Submit the franchise application form, providing all necessary details and documentation.
- Agreement: Review and sign the franchise agreement, which outlines the terms and conditions of the franchise.
- Training: Attend comprehensive training programs provided by Domino’s to ensure you are well-prepared to run the franchise.
- Site Selection: Choose a suitable location with the assistance of Domino’s, ensuring it meets all the specified criteria.
- Ongoing Support: Receive continuous support from Domino’s for operations, marketing, and other aspects of running the franchise.
Conclusion
Starting a Domino’s franchise in India can be a rewarding venture for those willing to invest time and resources. With a strong brand, comprehensive support, and a growing market, Domino’s offers a promising opportunity for aspiring entrepreneurs. If you’re ready to take the plunge, start your journey today!
Domino’s Franchise Contact Details:
Email: franchise@dominos.in
Phone: +91-123-456-7890 (Mon-Fri, 9 AM – 6 PM)
Website: Click here
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute professional advice. The author and publisher make no representations or warranties regarding the accuracy, completeness, or reliability of the content. Business decisions should be made after conducting thorough research and consulting with qualified professionals. Mention of specific companies, products, or services does not imply endorsement. Financial estimates are based on available data and are subject to change. The author and publisher are not responsible for any actions taken based on the content of this blog. Readers are encouraged to independently verify information before making any business or financial decisions.
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