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Domino's puts on hold its plans to open outlets along highways

12-November-2001
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Domino's puts on hold its plans to open outlets along highways

Domino's Pizza has put on hold its plan to open outlets at Indian Oil Corporation (IOC) filling stations along highways. Earlier the company had announced that it would open outlets at IOC stations in cities as well as along the highways.

However, Domino's will persist with its plans to open outlets at IOC stations within cities. It has two such outlets, one each in Delhi and Mumbai. The company's strategy behind tying up with IOC was making available better options along highways where the customer had no choice other than the local dhabas.

Domino’s has shut down outlets in smaller cities which are not generating enough revenues. The company is relocating 11 of its 101 outlets spread across 29 cities to markets where the demand for a Domino's pizzas is high. These include Meerut and Gwalior outlets.

About 75 per cent of the company's turnover comes from the takeaway or home delivery business and only 25 per cent accrues to direct footfalls, he added. The US-based pizza major, which opened its first store in 1996 in Delhi, operates about 100 outlets in the country.

The company had increased its outlets by about 60 during the last 18 months. Now, it plans to go slow on its expansion plan and will set up not more than 20-25 outlets every year.

Continuing with its strategy to Indianise its menu, Domino's will launch a 'chilly potato' flavour during Diwali season.

It has also drawn up plans to launch new combinations for its customers from January. These new combinations will include paneer topping and fish tikka.

The company is also planning to bring down its per head cost for the customer from Rs 65 per head to less than Rs 50 within the near future. For Diwali, the company is launching special scheme, which has been woven around the card-playing offer. Under the scheme, Domino's Pizza would be available about Rs 40 per person.

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