Entering the fast-food business through the franchise of Domino’s Pizza can prove to be highly profitable for anyone interested in seeking a franchise business in India. Being one of the most recognizable pizza delivery chains, which has developed and proven a business plan, Domino’s provides its franchisees with numerous services, including training, marketing, and operational tools. This guide aims to describe key indicators relevant to Domino’s Franchise in India and the cost structures, requirements, and profit involved in franchising.
Table of Contents
Overview of Domino’s
Domino’s Pizza was established in 1960 in the United States of America and is now one of the most recognized pizza delivery companies across the globe. Due to its slogan, ‘Yum, deep delight,’ market penetration, attractive prices, variety of products, great service delivery, and above all, EOSS strategy, Domino’s has established a large market share in India. It enjoys a loyal following because of the consistent quality of its products, the new products and services it launches often, and a strong delivery network that meets the requirements of the demanding Indian market.
Key Information About Domino’s Franchise
- Founding Year: 1960
- Global Reach: Currently, it has an outlet network of over 18,000 stores in more than 90 countries.
- Popular Offerings: Several types of pizzas, appetizers, desserts, and drinks
- Franchise Types: Fixed stores (large stores or eating places) and non-fixed stores (or mobile outlets like kiosks, outlets in the food courts, etc.)
- Domino’s Franchise Cost in India: 1 to 2 Crore
How Much Does Domino’s Franchise Cost in India?
To open a Domino’s franchise in India, certain expenses can be expected. These are the initial franchise fee, costs of establishment, equipment and materials, advertising and promotion, and many others.
Initial Franchise Fee: Domino’s Franchise Fees are ₹25 lakhs to ₹50 lakhs. This fee provides the franchisee an authorization to operate Domino’s outlet to cater for and also comes with operational tools, training, as well as continued support from the company. The fee may also vary depending on, among other factors, the location and type of store.
Construction Costs: That dropped from a range of ₹50 lakhs to ₹1 crore. These costs comprise all that has to do with getting the store to become operational, such as location, renovations, developments, interior decoration, and installations of signs, among others. However, the actual cost will be determined by the size of the store together with its location.
Components of store setup costs: Components of store setup costs:
Site Selection and Leasehold Improvements: Selecting a prime site that suits Domino’s requirements and making some alterations to it if need be.
Construction and Renovation: Constructing or rehabilitating the store based on Domino’s requirements for construction, such as a kitchen, dining area, and restrooms, among other modifications.
Interior Furnishings and Fixtures: Placing furniture, decorations, signs, and other objects necessary for an inviting atmosphere, which corresponds to the brand of Domino’s.
Equipment and Kitchen Setup: From ₹20 lakhs to₹30 lakhs. This pertains to all of the kitchen utensils and equipment for preparing food products and items, like pizza ovens, dough mixers, refrigeration, preparation tables, and POS terminals.
Initial Inventory: From ₹ 5 lakhs to ₹ 10 lakhs Includes expenses for purchases of the opening inventory of food and other items that are used in the store and other items that may be needed by the store for the first few months of its operations.
Marketing and Promotion: Promotional costs 10 lakhs for the launch of a retail shop, like local newspaper advertisements, fairs, or Google advertisements and posts to attract consumers.
Working Capital: ₹10 lakhs to ₹15 lakhs this reserve helps cater for the everyday expenses of the business, like paying the employees’ wages, bills, and other overheads right from the start until the business starts making its profits regularly.
Royalties and advertising fees
Royalty Fee: The gross margin was 5.5% of gross sales.
Advertising Fee: The remaining 4% must be derived from gross sales.
These are regular charges that the franchisee pays to Domino’s for the rights to use the name and engage in national marketing and promotional activities.
Total Investment
The estimated cost of investment to open a Domino’s franchise in India usually costs around ₹1 crore to ₹2 crore. This refers strictly to the first expenses and all subsequent charges that a client is likely to incur. However, the necessary investment amount may also depend on such factors as the store’s location, its size, and its format.
| Franchise Fees | ₹25 lakhs to ₹50 lakhs |
| Construction Costs | ₹50 lakhs to ₹1 crore |
| Equipment and Kitchen Setup | ₹20 lakhs to₹30 lakhs |
| Initial Inventory | ₹ 5 lakhs to ₹ 10 lakhs |
| Marketing and Promotion | 10 lakhs |
| Working Capital | ₹10 lakhs to ₹15 lakhs |
| Royalty Fee | 5.5% of gross sales |
| Advertising Fee | 4% of gross sales |
| Domino’s Franchise Cost in India | ₹1 crore to ₹2 crore |
How Profitable is Domino’s Franchise in India?
Currently, there are great opportunities for Domino’s franchises in India because the company has been dominating the market, and the services of fast-food establishments are becoming more and more popular among the population. On average, a well-managed Domino’s outlet can expect the following: On average, a well-managed Domino’s outlet can expect the following:
| Monthly Profit | From ₹3 lakhs to ₹7 lakhs |
| Annual Profit | from ₹36 lakhs to ₹84 lakhs |
| Return on Investment (ROI) | common within 2 to 3 years |
The franchise profitability of Domino’s depends on the location of the store, competition, the efficiency of the store management, and the condition of the market. They indicate that franchisees who are well organized and more so follow Domino’s guidelines are likely to make more profits.
Domino’s Pizza Franchise Requirements
In order to become a Domino’s franchisee, there are certain prerequisites that have to be met as outlined by the company. These requirements are laid down as a way of ensuring that franchisees are capable of running a proper store, which is also in line with Domino’s image.
Financial Requirements
Net Worth: The prospective franchisees should have a net worth of at least ₹ 3 crore.
Liquid Capital: To start with, liquid capital of at least one crore is necessary to bear the start-up cost and to meet the first few month’s contingencies.
Location and Site Selection
Prime Locations: This opening signifies that franchisees need to identify a site that meets the visibility, accessibility, and volume of traffic standards set by Domino’s. The company mostly considers facilities and locations close to residential estates, shopping complexes, and commercially active zones.
Store Size: The size of the store may depend on the format street or standard but it is better to consider at least 1000 sq. ft for a classic Domino’s outlet.
Experience and Commitment
Industry Experience: Still, it is not a strict requirement to have prior experience working in the food and beverage industry.
Training: Domino’s offers their franchisees extensive training in order to prepare them for ownership of the stores.
Operational Commitment: Franchisees should be ready to devote time and energy to managing the day-to-day business of the store. This includes staffing and training of employees, stock management, and execution of service delivery to meet customer expectations.
How can I open a Domino’s Franchise Store?
These are some details of the future franchisee and requirements that must be fulfilled in order to open Domino’s store. Here’s a step-by-step guide to the application process of Domino’s Franchise :
Initial Inquiry
Those who are willing to be part of Domino’s should visit the firm’s official website or its franchise division to offer their opinion and to be provided with additional information on the franchise offer.
Application Submission
The applicant should fill out and submit the franchise application form, accompanied by financial documents like a balance sheet, identity documents, and a marketing plan showing the proposed store and its business model.
Evaluation and Approval
The Domino’s franchise team will also examine the application, interview candidates, and evaluate the proposed site. Some of them may involve credit checks as well as other assessments that focus on the applicant’s ability in business and finance management.
Franchise Agreement
When the request is granted, the franchisee will enter into the franchise agreement, containing the terms and conditions of the franchise purchase and business, such as the fees to be paid, modes of operations, and the support services provided by Domino’s.
Store Setup and Training
During the store establishment, Domino’s undertakes to offer extensive training and adequate support to ensure that the store is well in line with the company’s image. It involves matters such as identification of the location of the center, civil works, installation of equipment, and phases of writing and training of staff.
Grand Opening
Finally, having made all the preparations, the franchisee is ready to open the store by holding an excellent opening ceremony with marketing and promotional strategies to create awareness about the store among the people in that area.
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The Pros and Cons of Domino’s Franchise in India
Pros:
Strong Brand Recognition:
Domino’s is one of the leading pizza chain restaurants across the world, including in the Indian market. This strong brand presence can also assist in drawing customers and sales from the very first moment.
Comprehensive Support:
One aspect of signing up to become a franchisee is that they have a very strong system of support from Domino’s, which can help with training, marketing, and everything else when the franchise is first starting out, especially if the person involved does not have previous experience in the fast-food business.
Proven Business Model:
This is because Domino’s has its own model that has been tested and proven to be fruitful throughout time, thus minimizing risks by starting a new business.
High-Profit Potential:
As the fast food industry expands in India, a Domino’s franchise can produce impressive revenues if managed effectively, making this a venture that may yield a high ROI.
Cons:
High Initial Investment:
The investment required to open a Domino’s franchise in India is moderately high, which could be anywhere between ₹1 crore and ₹2 crore. It may also be a challenge for some potential investors.
Ongoing Fees:
Additionally, it is important to understand that the franchisees have to pay royalties regularly and fees towards advertisements, which can reduce profitability to an extent.
Strict operational guidelines:
A disadvantage of the franchisee business model is that franchisees are only allowed to operate their businesses in line with the set standards as outlined by Domino’s.
Competitive Market:
India is a large and competitive market, and the fast-food industry comprises many brands. The importance therefore lies in the proper management and positioning of a business within a competitive environment.
Conclusion
In Conclusion, Domino’s Franchise Cost, Profit and How to Start in India 2024. Starting a Domino’s Pizza franchise in India is not an easy task as it requires a large amount of capital investment, but it has huge economic rewards, particularly when it comes to the fast food business that is expanding steadily in the country. Domino’s Pizza has a well-developed brand image, a solid fundamental model, and the complete backing of the franchisor to help franchisees thrive. However, the potential investors must take into account all the costs, obligations, and conditions in the market prior to the decision.
FAQs
How much capital is necessary to invest in starting Domino’s franchise in India?
The total investment may vary between ₹ 1 crore and ₹ 2 crore and include the initial franchise fee, the cost of setting up the store, the cost of equipment, inventory, and working capital.
What are the franchise requirements and ongoing costs at Domino’s Pizza?
The franchisee must therefore pay the franchisor a royalty fee of 5.5% of gross sales and an advertising fee of 4% of gross sales.
How many years will it take before one can see the return on investment (ROI) from a Domino’s franchise?
It is generally believed that the ROI of franchisees could be expected in 2 to 3 years on average based on the location, operation management, market environment, and so on.
Is it necessary to have prior experience working in the food industry to become the owner of a Domino’s franchise?
It is helpful if the marketer has prior experience with the food industry, but it is not a requirement. Thus, Domino’s offers extensive education to guarantee the competent outcome of the franchisees’ experience in managing their outlets.
To get more information or to fill out the franchise application, check dominos.com or contact the franchise support division.
