JUBILANT FOODWORKS LIMITED - Corporate Presentation June 2017
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JUBILANT FOODWORKS LIMITED
Corporate Presentation
June 2017
2 1 Overview of the Indian Food Service Industry 2 Overview of Jubilant FoodWorks Limited (JFL) 3 Domino’s Pizza – Journey & Overview 4 Dunkin’ Donuts – Journey & Overview 5 JFL Financial Highlights 6 Outlook 7 Annexures (Experienced Team, CSR Initiatives & Awards)
Overview of Indian Food Service Industry
4
Format 2016 CAGR 2021
Rs 204.0 bn ---- Rs 509.5 bn
Chained Market
(7%) 20.1% (10%)
Rs 810.8 bn ---- Rs 1,532.3 bn
Standalone Market
(26%) 13.6% (31%)
Rs 2,076.4 bn ---- Rs 2,939.5 bn
Unorganized Market
(67%) 7.2% (59%)
Rs 3,091.1 bn ---- Rs 4,981.3 bn
Total
(100%) 10.0% (100%)
Chained Market projected to grow at 20% CAGR
Source: India Food Services Report 2016- National Restaurant Association of India
5
Format 2013 CAGR 2016 CAGR 2021
Rs 15.2 bn ---- Rs 18.1 bn ---- Rs 29.1 bn
Cafe
(12%) 6% (9%) 10% (6%)
Rs 55.0 bn ---- Rs 91.3 bn ---- Rs 246.7 bn
Quick Service Restaurant
(43%) 18% (45%) 22% (48%)
Rs 39.5 bn ---- Rs 67.2 bn ---- Rs 172.5 bn
Casual Dining Restaurant
(31%) 19% (33%) 21% (34%)
Rs 5 bn ---- Rs 5.3 bn ---- Rs 6.2 Cr
Fine Dining Restaurant
(4%) 2% (3%) 3% (1%)
Rs 5.4 bn ---- Rs 10.7 bn ---- Rs 28.8 bn
Pubs & Bars
(4%) 25% (5%) 22% (6%)
Rs 7.8 bn ---- Rs 11.6 bn ---- Rs 26.4 bn
Frozen Dessert
(6%) 14% (6%) 18% (5%)
Rs 127.9 bn ---- Rs 204.0 bn ---- Rs 509.5 bn
Total
(100%) 17% (100%) 20% (100%)
QSR segment is projected to grow at 22% would stand as 48% of total
chained market
Source: India Food Services Report 2016- National Restaurant Association of India
6
Pro-growth Demographics
(increased youth Higher disposable /
population, nuclear family & discretionary income
more working women)
Growth driven by Greater
digitization urbanization
Changing
consumer
Growth in chained preferences –
retail widening exposure
to new cultures and
cuisines
India an attractive
Business potential in transit proposition for global
locations players – more choices for
consumers
Large consumption growth relative to emerging and developed
markets
7
Consistent
quality of Rising
Focused & product Execution & Focus on aspiration
Prudent Value for
integrated with finger delivery of hygiene and of using
roll-out money
approach on strategy sanitation branded
customer’s products
pulse
Evolving according to the needs of the consumer, leading to growth
8
On the pedigree of the global brand
Capitalising
The palette with local flavors
Customising
New products on a regular basis
Introducing
A unique model through home delivery & dine-ins
Developing
Operational excellence- consistency of product and
service
Delivering
On enticing customers with evolving mktg strategies
Focusing
Systematic approach to deliver sustainable growth
Overview of Jubilant FoodWorks
10
o Founded in 1960 o Founded in 1950
Presence Across o More than 14,000 franchised and Company- o More than 12,200 restaurants in more than
Countries owned Restaurants in more than 85 45 countries
international markets
Beginning of
Restaurants in o 1st restaurant operated in India in Mar’96 o 1st restaurant operated in India in Apr’12
India
Presence in India o 1,127 restaurants across 265 Indian cities*
o 60 Restaurants across 16 Indian cities*
o India is currently the biggest market for
Domino’s Pizza outside the United States
Contract Details o Exclusive right to open Domino’s Pizza
o Exclusive right to operate and develop
restaurants in India, Sri Lanka, Bangladesh
Dunkin’ Donuts restaurants in India. The
and Nepal
agreement is for a period of 15 yrs, till
o Current franchising agreement till December February 2026 with the option of renewal
2024 with right of renewal for another 10 for 10 yrs, with first right of refusal for Sri
* As of May 29, 2017 years Lanka, Nepal & Bangladesh
Accumulated learning's to drive ramp-up in Domino’s Pizza & Dunkin’ Donuts11
Consumer
Robust
Driven by Focus and
Integrated
Operational Innovative
Supply
Excellence Marketing
Chain Continuous
Systems Human Innovation
Resource Robust Project
Management Corporate Investments Management
driving growth Governance in Competency
Mechanism Technology
Delivering consistency in product and services to delight our customers12
ROBUST
INFRASTRUCTUR
E
OPERATIONAL
EXCELLENCE
Delivering consistency in product and services to delight our
customers13
Food Safety and Quality Assurance
• Training on standards of Food safety and Quality
• Regular QA Assessment
• Third party assessment through NABL Accredited agency
• Regular compliance checks of food processes as per FSSAI
guidelines
• Continual surveillance assessment of restaurants under ISO
22000 certification
• Stringent selection & • Training of staff and
monitoring process of new managers on comprehensive
and existing suppliers based @ Restaurant standards of Food safety and
on key performance Level Quality
indicators for Quality and • Stringent sampling of all raw
Food Safety requirements materials & COA approach
• Food ingredient suppliers are acceptance
FSMS certified Food Safety • Comprehensive analysis of
• Moving all vendors towards and Quality Food products as per FSSAI
FSMS certification Assurance guidelines
• NABL Accredited Third Party • Regular food quality and
Assessments Initiation for safety QA assessments
Core ingredient supplying @ Supply @ Commissary based on FSSAI Schedule 4
Food Vendors Chain level Level requirements
• Alliances with all vendors to • Implemented FSMS (ISO
continuously enhance Quality 22000 ) certification in 5
and Food safety norms and Commissaries
comply regulations14
Vendors and Central Location
Partners
COLD CHAIN
TRUCKS at 1-40 C
COLD CHAIN
TRUCKS at 1-40 C Restaurants
Raw Restaurant
s
Materials
* As of 29 May 2017
Under
Construction
An integrated supply chain for Domino’s Pizza and Dunkin’ Donuts
adapted to Indian conditions; well-equipped to deal with geographic and
demand expansion15
Guest Delight
Manager
(Restaurant
Manager) is Assist
Pre defined treated as Employees in
growth path for CEO of the encouraging
every Team Restaurant excellence
Member educational
growth
Reward &
Recognition with Learning &
Variable Professional
Incentives bring Development and
motivation Training
Whistle
Blower
Fun at work institutionised
at every
restaurant/
office
Team members act as brand ambassador imbibing JFL’s values, ethics and culture16
Institutionalised
Composition of Board with Whistle Blower
Professional Acumen Mechanism
Nurturing Enterprise Robust Audit and
Risk Management
Corporate Review Mechanism
Governance
Mechanism
Code of
Conduct/ Established Internal
No Gift Policy Control Mechanism
Truly inculcated mechanism of corporate governance17
Customer level Commissary / Supply chain level
Customer Relationship Management ( CRM ) Oracle Transport management – Optimizes
GPS enabled deliver vehicles – to track route/ load efficiencies for supplies from
vehicle movement commissary to stores COGNOS – system aids in
OLO/mobile app /Voice ordering – for ease procurement planning
of ordering SAP – for accounting and Supply Chain
systems/ ERP
GPS on commissary truck – Enables tracking
trucks and monitoring factors like temperature
compliance
Barcoding – for efficient stock management
Automation – Implementation of sensor doors,
use of technology for temperature compliance,
picking trolley
ARIBA – tool for vendor management
Restaurant level Organizational Level
OLO/mobile app /Voice ordering – for ease Energy management system – tool to
of ordering optimize energy usage
LMS – Learning management System – non SAP – Accounting and Supply Chain related -
trainer based learning at restaurants ERP
GRC – Governance Risk and Compliance tool Biometric device – tracking of employee
Energy management system – tool to attendance, helps improving productivity,
optimize energy usage I Manage – Mobility, Ease of Compliance,
Socialization, automation of transactions, say
confirmation
Hyperion – tool for financial planning
Integration of technology across levels to drive efficiencies & enhance growth
opportunities18
3
Negotiate
With landlords
5 Average restaurant
opening/ construction
Handover of restaurant time is between 35-45
2 to contractor for days from the date of
interiors possession of premises
Construction/ Purchase for a new restaurant
4 and installation of location
machinery
6
Operational and
Financial Diligence
Legal due
diligence and
agreement sign
off with
landlords
1
7 Training of team
members
Local
advertisement
(distribution of
Identify new Restaurant
flyers, regional
restaurant opening
media coverage)
location
8
ROI/Payback period analysis undertaken prior to opening a restaurant19
Pizza Mania Extremes
Chef’s Favourite Range of coffees
Paneer
Product Innovation
Burger Pizza Choco Pizza Quattro
Formag
gi Burst
DunkyDoos
Crust
• Open Kitchen
Design Innovation • Flexible
Seating
• Heritage Wall
Technology
Innovation
Innovating to keep the excitement alive20
National Marketing Local Store Marketing (LSM)
Television Door Hangers
Print Media & Radio Flyers
(including regional
language) Customer lifecycle
management programme
Emotional positioning of
‘Yeh hai Rishton ka Innovative BTL activation
Time’ (restaurant targeted)
Innovative new product
development and
launches
Customer Relationship
Digital Marketing
Management
• More than 6.4 • “One to one”
million Facebook marketing utilizes
fans information from
point-of-sales
• 147k followers on software system to
Twitter provide relevant
customized
• More than 13.0 mn
communication/
views for video of
offers to consumers
Domino’s Pizza
India on YouTubeDomino’s Pizza –Overview
22
Striking an
emotional chord with
consumers through
its campaigns
included ‘Hungry
Kya?’, ‘Khushiyon ki
Reaching out to Home Delivery’ and
more people by the latest one ‘Yeh
launching unique Hai Rishton Ka Time’
mobile
Popularizing applications
the pizza
concept by Mastering
customizing it the on-time
to the Indian home delivery Providing
palette model, without value by tapping
penalizing the the middle
delivery boy for classes through
late/free the affordable
delivery ‘Fun Meal’ and
the ‘Pizza Mania’
range23
Revenue CAGR (FY10-FY17) 29%
400 2016: Crossed 1200
2012: Launch of 1000 store 1127
Aug 2008: Launch new positioning milestone
of new positioning “Yeh Hai Rishton
"Khushiyon Ki Ka Time” 1026
350 2003: Home Delivery"
1998: Launched "30 Nov 13:
Launched 1000
Launched Min or Free" Fresh Pan
2012: Taco Quattro
"Hungry campaign Pizza
Aug 2008: 2009: CLC, Indiana & 876 Formaggi
300 Kya?" July 13:
Launch of Rs.35 Pasta & Lebanese Burst
campaign BOGO
Pizza Mania Choco Lava Roll Crust and
Wed
No. of Restaurants
Launched Launched Choco 800
726 Pizza
250
Largest
2005: Ajay Kaul
Management appointed as 576 market
200 600
Changes CEO outside U.S.
465
150 Pizza
378 Theatre 400
306
100 100th
241
Restaura Feb 2010:
nts 182 IPO 200
50 100 93
80
2 7.6 8.4 10.9 31.3 42.0 62.8 100.5 150.7 208.2 255.0 306.9 356.5 376.6
0.2
0 0
FY96 FY01 FY04 FY05 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Revenue (USD mn) Restaurants
Initial Phase Consolidatio Planned Growth Aggressive
n Growth
Largest market for Domino’s Pizza outside of U.S.A24
Open Kitchen-
Benefits
Its Theatric-Consumer
can see the making of
Pizza’s
Confidence in
Hygiene and
Sanitations.
Pizza Flexible Seating
Theater
High stools for
Youngsters
Soft sitting for Seniors
Long Table for
Families
Heritage Wall
Indicating more than
60 years Old Brand25
Quattro Formaggi Burst Pizza Mania Extremes
Choco Pizza Crust
Burger Pizza Fresh Pan Pizza in Regular size Navratra Menu26
National Delivery
Number
Restaurant Takeaway
3600
Indian mode of Mobile
Railways customer App
outreach
Online
Delivery
ordering27
Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Average OLO contribution to delivery sales 41% 44% 47% 49% 51%
Mobile Ordering sales contribution to overall 38% 41% 54% 56% 68%
OLO
3.9 mn 4.4 mn 5.0 mn 5.3 mn 6.4 mn
Downloads of mobile ordering app
Accessible through all platformsDunkin’ Donuts – Overview
29 ALL DAY PART MENU
30
Munchkins DunkyDoos Valentine’s Day Donuts Holi Range of Donuts
Donuts
Big Joy Burgers Chef’s Favourite
Paneer
Food
Virgin
Mojito
Coolatta
Beverages
Salty
Classic
Lemonade
Coolatta31 Online ordering
Financial Highlights-Jubilant FoodWorks
33
All figures in Rs mn
Total Income EBITDA (LHS) EBITDA% (RHS)
30,000 3,000 20%
18.6%
2,718
25,461 17.3% 2,628 18%
25,000 24,102 2,444 2,551 2,466
2,500
16%
20,745 14.7%
14%
20,000 2,000 1,904 12.7%
17,235 12%
15,000 14,076 11.3% 9.7% 10%
1,500
8%
10,175
10,000 1,000
6%
4%
5,000 500
2%
0 0 0%
FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17
Note: 1. Financial discussion throughout this release is based on standalone reporting
2. The financials of Dunkin’ Donuts have been included in the results & related financial discussion34
All figures in Rs mn
PAT (LHS) PAT % (RHS) Networth
1,600 12% 9,000
8,522
7,976
10.4% 8,000
1,400 1,351
1,258 10%
1,233 7,000 6,711
1,200 9.6%
1,056 1,066.2
8% 6,000 5,635
1,000
7.3% 5,000
4,362
800 6%
5.9% 672.5 4,000
4.4%
600 2,996
4% 3,000
400 2.6%
2,000
2%
200 1,000
0 0% 0
FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17
Note: 1. Financial discussion throughout this release is based on standalone reporting
2. The financials of Dunkin’ Donuts have been included in the results & related financial discussion35
No. of Employees No. of Restaurants
27,122 27,719 26,604
24,969 1,187**
1,180*
19,734 1,097
930
14,626 752
11,514 586
465
378
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Same Store Sales Growth Debt-Equity ratio
(SSG)
37%
30%
16%
2% 3.2%
0.05%
-2.4% 0 0 0 0 0 0 0
FY11 FY12 FY13 FY14 FY15 FY16 H1
FY17
FY11 FY12 FY13 FY14 FY15 FY16 FY17
• *Total No of stores includes 1,117 Domino's Pizza stores + 63 Dunkin’ Donuts Restaurants (as of 31 March, 2017 )
• **Total No of stores includes 1,127 Domino's Pizza stores + 60 Dunkin’ Donuts Restaurants (as of 29 May, 2017 )Outlook
37
Energize existing
loyal customer
Continuous base and attract
investments and new audiences
Necessary up gradations through innovative
investments that towards band and evolving
Increased reach of Invest and grow developments to
will fortify menu items and
restaurant network OLO channel to capture the
business marketing
to provide better create a dynamics of the
capabilities and strategies
accessibility to the seamless
customers. For help tap market sector and
customer customer
FY18, the target opportunities
experience and preferences
would be to open Greater Noida
around 40-50 new derive
Supply Chain
Domino’s Pizza efficiencies
Center shaping
restaurants and 4 - up as per
5 new Dunkin’
Company’s plans
Donuts restaurants.
and is targeted
Plan to reimage to be to be
around 100 operational soon
restaurants for a
better customer
experienceAnnexures: Experienced Team, CSR initiatives Awards
39
Mr. Shyam S. Bhartia (Chairman & Director) Mr. Hari S. Bhartia (Co-Chairman & Director)
o Has experience in the pharmaceuticals and o Has experience in pharma, life sciences &
specialty chemicals, food, oil and gas, healthcare, oil & gas (exploration & production),
aerospace and IT sectors agri & performance polymers, food & retail and
o Bachelor’s degree in commerce St. Xaviers consulting services in aerospace and oilfield
College, Calcutta University; Fellow member of services
the ICWAI o Bachelor’s degree in chemical engineering from
IIT, Delhi
Mr. Pratik Pota (CEO and Wholetime Director) Mr. Vishal Marwaha (Independent Director)
o Joins the Company from PepsiCo India where o He has expertise in private equity and
he was Chief Operating Officer, Foods & investment banking.
Beverages (Company Owned Operations). Prior o Bachelor’s degree in commerce from the
to this, Mr. Pota has held various leadership University of Delhi and is a qualified chartered
roles at Bharti Airtel and Hindustan Unilever. He accountant
has over twenty-four years of experience in
FMCG and Telecom Industry.
o Alumnus of IIM Kolkata and BITS Pilani40
Ms. Ramni Nirula (Independent Director) Mr. Phiroz Vandrevala (Independent Director)
o Has experience in the banking and finance o He has been part of numerous expert committees
industry including Project Financing, Strategy, constituted by the Reserve Bank of India to guide
Planning & Resources and Corporate Banking the Central Bank in its policy-making efforts, as
well as IT advisory bodies in India and on the
o Bachelor’s degree in economics and MBA from Board of several prominent educational institutions
University of Delhi
o He is a graduate from Kolkata and a qualified
Chartered Accountant
Mr. Arun Seth (Independent Director) Mr. Shamit Bhartia (Non Executive Director)
o He has commercial and technical expertise in the o Has expertise in media and motor Industries
IT and telecommunications industry in India.
o Has worked in the Corporate Finance and M&A
o Holds a bachelor’s degree in engineering from IIT, Group, Lazard Frere, New York and is a
Kanpur and MBA from IIM, Calcutta Managing Director of Hindustan Media Ventures
Limited
o Bachelors’ degree in Economics from Dartmouth
College, USA.
Mr. Berjis Minoo Desai (Independent Director) Ms. Aashti Bhartia (Non Executive Director)
o Has expertise in mergers and acquisitions, o Has expertise in management building and
derivatives, corporate and financial laws, business expansion.
International business laws and international
o Executive Director at Ogaan India Private
commercial arbitration.
Limited. Has worked as head of Strategy and
o Has been practicing law for the last 37 years Business Development for Jubilant First Trust
o Has worked as Managing Partner of J. Sagar Hospitals.
Associates (JSA). o Bachelors’ degree in Anthropology and History
o Law Graduate from Mumbai University and post from Columbia University, USA and Business
graduate in law from Cambridge University, U.K. Bridge Program from Tuck School of Business,
Hanover, New Hampshire.41
Sachin Sharma (President & CFO) Mr. Tarun Bhasin (President & Chief Business Officer,
Dunkin’ Donuts India)
o Spearheading finance & accounts, legal,
secretarial and Investor relations o Responsible for Operations & business
o Has over 21 years of work experience in Media development, training & customer service,
and entertainment, Digital, IT/ITES and quality and Six Sigma, marketing, new product
Infrastructure. development and HR
o Mr. Sharma is a qualified Chartered Accountant o Has over 23 years overall experience out of
and holds a Bachelor of Commerce (Hons) which 20 years have been with the Company
Degree from Delhi University o He holds a bachelor’s degree in Arts from
University of Delhi and diplomas in public
relations and hotel management from Bhartiya
Vidya Bhavan, New Delhi and National Council
for Hotel Management and Catering
Technology, New Delhi, respectively
Dev Amritesh (President & Chief Business Officer, Domino’s
Pizza India)
o Responsible for operations and business
development, marketing, project and
maintenance, training and customer service,
quality & Six Sigma for India
o Has over 17 years overall experience out of
which over 10 years have been with the
Company
o He holds a BE degree from Bangalore
University and also holds a PGDBM
(Marketing and Operations) diploma from IMT,
Ghaziabad.42
Swachh Bharat Abhiyan
Proactive efforts towards the mission of a Clean India.
Road Safety
Working concertedly across cities to spread awareness on road
safety.
Inclusive Development of People with
Disabilities (PwD)
Empowering PwDs to integrate them seamlessly in the work
environment.
Empowering Youth
Enhancing skills of socially disadvantaged youth to facilitate their
gainful employment.
Farmers Development Program
To enhance the cattle productivity & farmer’s income
Committed to be a Good Neighbour43
JFL won the National Award for Excellence Domino’s won Star Retailer of the year JFL won CSR Initiative of the year Award in
in Corporate Communication in the Award at Franchisee India Award FY16 at Annual Indian Retail Awards organized
category of Best Annual Report for FY2016 by Franchisee India
Domino’s Pizza won the National Award –
Excellence in Customer Service,organised by
Domino’s Pizza won the National Award – World HRD Congress JFL was awarded as Best Risk Management
Best Deployment of Learning Management Framework & System – Retail award by by
System at Best in Class Learning & ICICI Lombard and CNBC TV18
Development Awards, organised by World JFL won Golden Peacock award in FY16 for
HRD Congress • National Quality Award for concentrated
efforts in building a culture of continuous JFL has been certified as Great Place to Work
improvement by the Great Place to Work Institute for building
Coca Cola Golden Spoon Award under • National Training Award a high trust & performance culture.
following categories: • Risk Management
• IMAGES Most Admired Food Service Chain
Of The Year – QSR Foreign Origin
• IMAGES Most Admired Food Service JFL has won the 3rd Edition of “Indian Risk JFL won 7 CII Awards for Food Safety - 2016
Retailer Of The Year – Retail Expansion Management Award – Best Risk Management under following categories:
Practice (Retail)” by CNBC TV-18. • Outstanding Performance in Food Safety in the
category of 'Small & Medium manufacturing
business: ready to cook’ and 'Small & Medium
Food Service QSR’.
Dunkin’ Donuts has won •
Domino’s Pizza India has won the “Golden Significant Achievement in Food Safety in the
• “National Award - Excellence In Customer Service & category of ‘Small & Medium Manufacturing
Peacock National Training Award” by the Loyalty – in the Category of Café Restaurant” at Business: Rising Star: Ready To Cook’ and
“Institute of Directors(IOD)- India at the”25th Global Awards for Excellence in Quality ‘Small & Medium Food Service: Rising Star: QSR’
World Congress on Leadership for Business Management & Leadership organized by World • Strong Commitment to Food Safety in the
Excellence & Innovation’ and the Golden Quality Congress. Category of ‘Small & Medium Food Service:
Peacock Awards Presentation Ceremony • “Asian Award for Best in Quality Service” at 7th Rising Star: QSR’
Asian Best Employer Brand Award 2016 organized • Letter of Appreciation in Food Safety in the
jointly by World HRD Congress. Category of ‘Small & Medium Food Service: QSR’
• “National Award - Best Customer Service by a Café and ‘Small & Medium Food Service: Rising Star:
Restaurant” at Indian Restaurants Awards 2016 QSR’
Dunkin’ won organized by Franchise India.
• Delhi NCR Hot 50 Brands Award in FY16 • Food Safety Excellence Award” at the Dunkin’
presented by One India International Middle East Rally Awards 2016
• Best marketing and promotions Award at organized by Dunkin’ International.
Images Retail Award by India Retail ForumThank You
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