India’s quick-service restaurant (QSR) industry may be in the middle of a soft patch, but one player seems to be rewriting the rules of the game. While most restaurant chains spent the September quarter navigating muted demand, higher costs and the weight of festive fasting periods, Jubilant FoodWorks — the master franchisee of Domino’s Pizza in India — delivered a performance that stood starkly apart from the rest.
At a time when eating-out frequency dipped and delivery costs pinched margins across the sector, Jubilant managed to post robust growth, signalling a fundamental shift in what is driving success in India’s $27.8 billion QSR market. And if trends continue, the company may be steering the industry toward a future defined by delivery, speed, and unrelenting focus on consumer convenience.
A Quarter Where Jubilant Defied Gravity
Jubilant FoodWorks reported ₹2,340.15 crore in revenue, a strong 19.7% year-on-year jump, even as competitors struggled to maintain single-digit growth. Even more striking: net profit doubled to ₹194.6 crore.
This performance didn’t just outpace the competition—it exposed how deeply consumer behaviour has evolved.
While much of the sector grappled with sluggish dine-in and the Navratri-Shraavana fasting overlap, Jubilant leaned into its core strengths: a delivery-first mindset, aggressive value pricing, and constant product innovation.
Same-store sales growth hit 9.1%, a standout figure in an otherwise muted demand environment. CEO Sameer Khetarpal attributed this to Domino’s delivery-led model and “continuous product innovation,” which helped the brand stay top-of-mind even during fasting periods.
During the quarter, the company added 93 new stores, including 81 Domino’s outlets, expanding its footprint to nearly 3,500 stores in India and overseas — reaffirming Domino’s position as India’s largest QSR chain.
Competitors Feel the Chill of a Slowdown
While Jubilant soared, others in the sector faced a far tougher operating landscape.
Westlife Foodworld (McDonald’s West & South India)
- Revenue growth: 3.8%, reaching ₹642 crore
- Challenges: weak consumer sentiment, reduced eating-out frequency
- Restaurant operating margins held at 19.2%, but rising delivery costs weighed down profitability
Managing director Saurabh Kalra called Q2 “a period of continued softness in discretionary spend,” reflecting a cautious consumer mood.
Devyani International (KFC, Pizza Hut)
- Revenue grew 12.6% to ₹1,377 crore
- Margins weakened due to slower dine-in recovery and rising aggregator commissions
- Back-to-back fasting periods (Shraavana and Navratri) hit meat consumption and hurt KFC’s chicken-led menu
Chairman Ravi Jaipuria noted that overlapping fasting seasons led to a sharp dip in out-of-home consumption.
Sapphire Foods (KFC, Pizza Hut)
- Reported a ₹12.8 crore loss
- Ebitda margins fell 230 basis points to 14.3%
- Same-store sales growth slipped: KFC down 3%, Pizza Hut down 6%
CEO Sanjay Purohit summed up sentiment succinctly: “Nothing has improved materially.”
A Bernstein report echoed the industry’s concerns, highlighting deeper structural issues, including rising delivery costs and overdependence on discounts to retain market share.
What Set Jubilant Apart?
While rivals battled margin pressure and weak dine-in trends, Jubilant’s strategy offered strong insulation against industry headwinds.
1. A Fully Owned Delivery Network
Unlike most QSR players who depend on Swiggy and Zomato, Domino’s controls its end-to-end delivery.
This allows:
- Zero aggregator commissions
- Faster, more reliable deliveries
- Greater control over customer experience
- More flexibility in pricing
With a 20-minute delivery promise and frequent free delivery offers, Domino’s has built a delivery recall unmatched in the industry.
“Domino’s has the biggest mind share in delivery—people associate it with reliability and speed,” said Satish Meena, founder of Datum Intelligence.
2. Smart, Layered Pricing Strategy
Domino’s cracked the affordability-premium balance:
- ₹149 and ₹199 pizzas drive volumes
- Korean flavours and large-size pizzas appeal to premium diners
This “value-plus-variety” approach helped sustain demand even in a slow market.
3. A Strong, Sticky Loyalty Base
With a 40-million-member loyalty programme, Domino’s enjoys repeat orders that reduce customer acquisition costs and maintain demand consistency.
4. A Category That Naturally Wins
Pizza remains one of India’s most frequently ordered delivery foods — a product that travels well, offers meal-for-many convenience, and thrives in family settings.
An Industry Under Pressure
Across the broader QSR landscape, several structural challenges continue to weigh on profitability:
- High delivery mix is eating into margins since delivery economics are less favourable than dine-in.
- Aggregator commissions keep rising, tightening margins for delivery-heavy brands.
- Dine-in recovery remains slow, never fully reverting to pre-pandemic patterns.
- Heavy value-led discounting—like McSaver ₹69 combos, KFC’s 9-for-₹299 buckets, and Pizza Hut’s Buy 1 Get 3 deals—boost volumes but hurt profitability.
The sector’s challenges are not merely quarterly fluctuations but signs of a deeper, evolving consumer landscape.
A Promising December Quarter Ahead
Despite September’s softness, QSR operators are optimistic about the December quarter — historically the strongest period for food services in India.
Domino’s is already seeing tailwinds:
- CEO Khetarpal said October sales were ahead of plan
- The company expects strong festive momentum and double-digit growth in H2
Analysts agree that food spending usually stays strong from Diwali through New Year, buoyed by higher mall visits, holiday travel and social gatherings.
Other major players share the optimism:
- Westlife Foodworld expects improved sentiment and better footfalls driven by new menu innovations.
- Devyani International anticipates a rebound as post-Navratri consumption normalises.
Takeaways: The New Rules of India’s QSR Game
Jubilant FoodWorks’ stellar quarter illustrates how India’s QSR industry is undergoing a structural reset.
The winning formula is clear:
- Own the delivery experience
- Keep value at the heart of the offering
- Innovate beyond just new flavours
- Grow loyalty, not just customer acquisition
- Build a brand that’s synonymous with speed and reliability
As India’s QSR market heads toward $43.5 billion by 2030, the players who master convenience, affordability and operational efficiency will lead the next decade.
For now, Jubilant FoodWorks stands tall — the lone wolf running ahead while the pack regroups.
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