Fundamentals matter, particularly in business.

The reasons are not hard to find.

Enterprises face rapidly changing market conditions and increasingly competitive business environments. Focussing on Fundamentals provides clarity in this complex world. Fundamentals help enterprises plan and prepare for the uncertain and to overcome challenges; they help reinstate and guide back businesses to the right path when they stray.

Fundamentals are like the compass and the lodestar, using which the path of sustained business success is navigated.

At JFL, we believe in focussing on our fundamentals. Our excellent products, superior customer experience and attractive prices have been the pillars on which we have executed our success story of over two decades.

Entering FY 2018, we realised it was important to strengthen and reinforce our basics.

We examined every part of our business and went about strengthening it in a disciplined way. Read on to know how we strengthened the fundamentals of our business and steered growth.

Product Innovation

Focus on products first and foremost – that is how we truly delighted our customers.

Listening to our customers’ preferences and responding quickly, we launched “All New Domino’s” in the early part of the financial year. Made with a softer and tastier crust, new tomato sauce made from imported Californian tomatoes, more cheese, bigger and more toppings – All New Domino’s was an all-round, comprehensive upgrade of our pizzas. We also improved the quality of our donuts offered at Dunkin’ Donuts.

Our customers loved All New Domino’s and our product satisfaction scores improved significantly. Existing customer frequency of purchase increased, as did the pace of new customer acquisition.

We also drove Product innovation in our portfolio. We launched two new pizzas – Paneer Makhani and Chicken Tikka. These were loved by our customers and received very good feedback. We also drove innovation in Dunkin’ Donuts. We launched a new range of Signature Donuts as also a range of new Beverages such as Shaken Iced Coffee, Caramel Hazelnut Latte and Tiramisu Latte.

Value for Money

Our brands are seen as value offerings; a proposition we further strengthened in the year.

For providing value-for-money to our customers every single day, we launched ‘Every Day Value’ for Domino’s Pizza. Moving away from occasional deep promotions to an Every Day Value proposition encouraged spontaneous purchase and consumption “Jab Dil Boley Domino’s” thus helping increased ordering frequency.

A special Super Value Menu was launched in small towns, keeping in mind the importance of affordability and the lower propensity to spend by customers in these markets.

What’s more, the significant product quality upgrade made on Domino’s Pizza was made available to our customers without any increase in prices, further reinforcing our Value for Money credentials.

Dunkin’ Donuts, too, improved its value proposition with the launch of Donuts and Coffee Combos at very reasonable prices.

Offerings from both brands are now available at standard affordable prices every day, thus doing away with the need to wait for specific days or discount offers.

Our better value-for-money offer was also marked as we passed on the GST benefits to our customers while absorbing the regular food inflation costs during the year.

During the year, we optimised costs across the business – manpower, manufacturing, rent, advertising, supply chain and logistics being the most critical areas. Cost rationalisation enabled us to lower our cost of production, thereby allowing us to pass on the benefits to our customers in the form of better pricing.

Customer Experience

We improved our experience in a number of ways that are important to our customers.

The Domino’s Pizza Mobile App was improved in the year, providing customers with improved functionalities such as lighter web pages for faster loading of the menu, quick checkout and an inbuilt digital wallet. Significant enhancements were also made in the Point-of-Sale (POS) software and technology to deliver a seamless customer journey across all touch points.

For the convenience of Domino’s customers who order by telephone, a centralised call centre was put in place. Customers can now place their order at the call centre, from where it is transferred to the local Domino’s Restaurant. Improvements in quality of the interactions and reduction in call drops with use of better technology enhanced the overall call ordering experience.

Re-imaging of some Domino’s Restaurants also happened in the year under review, which also helped improve the dine-in experience in these stores.

People’s lifestyles are changing fast – they are working longer hours and looking for greater convenience. Matching their pace, we launched Domino’s Late Night delivery across 7 cities and 52 Restaurants wherein we delivered pizzas until 3 a.m. Our customers loved this service and encouraged by their response, we are expanding this operation to new cities.

Technology

Deploying advanced technology, we began work to usher in a new era of customer delight, efficiency and growth.

The world sees itself in the middle of an unprecedented digital transformation.

We, at JFL, are investing aggressively to stay on top of this transformation. We created a Digital team to lead our own technology and digital initiatives. This team will work on strengthening our Digital assets, driving Data mining and analytics, and developing next generation technologies that improve the customer experience.

Cutting-edge technology is being deployed in our Digital Assets to ensure maximum scalability and minimal friction leading to an optimal customer experience. Massive changes in the backend are also being done to eliminate payment and network issues. Other new Ordering innovations being pursued include Deliver on train, Advance Ordering, 1 click ordering etc.

This will be accompanied by work on building Machine learning algorithms to drive smart recommendations, personalisation, order predictions and real-time analytics.

Cost Management

We brought a razor-sharp focus on controlling costs.

We kicked off a concerted work-stream to examine every cost and to drive efficiencies and increase productivity. Energy Management Systems were installed in a majority of stores that are helping us monitor and control energy costs. Our Operations team went out and renegotiated and reduced rentals in many of our stores. We shut unprofitable stores wherever necessary, especially in Dunkin’ Donuts.

For our back-end functions, the use of latest technology and tech-enabled solutions such as SAP Ariba, LogiNext and Energy Management System further enabled us to reduce wastages, decrease costs and improve process efficiency.

Our new commissary at Greater Noida was commissioned in the year. This is a state-of-the-art facility with a high degree of automation and is the largest such facility in the entire Domino’s Pizza world. The Greater Noida commissary leads to lower material costs and allows us to exercise greater quality control.

Case Study

Steering growth the right way

When we strengthen the way we operate, we earn the right to drive long-term growth.

Strengthening fundamentals is thus not just about doing the right things, but doing things the right way.

It is about functioning responsibly, about leaving no one behind – our employees, our business partners or our communities – and of course, ensuring our products are of the highest quality for our customers.

Here is a story of the way JFL thinks and works.

Many years back, Govind Bangar earned an irregular income from the sale of milk. Govind received support from JFL and its cheese manufacturing partner. He was helped with construction of loose housing system for his cattle, with artificial insemination and vaccination for the cattle, and with a mineral mixture cattle feed which helped reduce his input cost for feed and increase the milk yield.

Govind is now a happy and satisfied Dairy farmer, and a key partner in our growth journey.

With over 1,100 Restaurants across India and a demand of over 6,000 tonnes of cheese annually, JFL is playing a small part in improving the lives of many farmers like Govind.

How about our Mozzarella Cheese?

Only the best is used on a Domino’s Pizza.

Our Mozzarella Cheese is made from 100% real milk procured from farmers across the country.Take a look how.

Milk generated at the village level by hundreds of farmers like Govind.

Sent to milk collection centre of the dairy manufacturer.

Tested for quality and shipped in chilled storage tanks to milk processing plants.

Stringent quality checks re- conducted before the milk is taken up for processing.

Converted into mozzarella cheese at state-of-the art facilities of India’s best cheese processing companies; all facilities are FSMS (food safety management systems) certified.

The mozzarella cheese from the plants of Dairy manufacturers is sent to our warehouses across the country for storage.

The mozzarella cheese again goes through quality and food safety check at our warehouses before it’s certified to be used in our restaurants.

Ensuring food safety, quality and freshness across the supply chain.

Temperature-controlled transportation and storage by our dairy partners.

Temperature controlled transportation and storage by trucks, data loggers in trucks monitor temperature compliance.

Together, with our partners, we ensure that the mozzarella cheese we use in our pizzas is of the highest quality and conforms to all norms as laid down by FSSAI (Food Safety and Standards Authority of India).