Prestige Institute of Management, Gwalior (M.P)

Summer Training Report

ON

FINANCE ASPECT OF DOMINO’S PIZZA AND COMPARATIVE STUDY BETWEEN PIZZA HUT AND DOMINO’S

“For the partial fulfillment of the award of Bachelor of Business Administration”

(2008-2011)

Submitted To Submitted By:

JIWAJI UNIVERSITY GWALIOR ABHISHEK TYAGI

B.B.A V SEM

Prestige Institute of Management, GwaliorAirport Road, Near Deendayal Nagar , Gwalior- 474020

Tel.:0751-4097000,2470724, Email : info@prestigegwl.org; Website: www.prestigegwl.org

DECLARATION

I ABHISHEK TYAGI, student of BBA V Semester of Prestige Institute of Management,

Gwalior, hereby declare that the project is my original piece of work and not the copy of any

such work undertaken by someone else, all the information , facts and figures presented in the

report are first hand in nature. They are actually based on my intense efforts conducted in

DOMINOS PIZZA India Ltd. I have completed this project under the guidance of Prof.

NAVITA NATHANI (Faculty PIMG).

Date: ABHISHEK TYAGI

(B.B.A V SEM)

CERTIFICATE

This is certifying that the project entitled “FINANCE ASPECT OF DOMINO’S PIZZA AND

COMPARATIVE STUDY BETWEEN PIZZA HUT AND DOMINO’S” is a work done

under the guidance of Prof. NAVITA NATHANI by ABHISHEK TYAGI in the partial

fulfillment of requirement for the award of Bachelor of Business Administration of Prestige

Institute of Management, Gwalior. He has worked under our guidance and direction. Her work

is found to be satisfactory and complete in all respect.

Date: Prof. NAVITA NATHANI

(Faculty Guide)

ACKNOWLEDGEMENT

It is a great pleasure and privilege for me to present report entitled “FINANCE ASPECT OF

DOMINO’S PIZZA AND COMPARATIVE STUDY BETWEEN PIZZA HUT AND

DOMINO’S” I would like to express my sincere gratitude to Prof. NAVITA NATHANI who

has very kindly guided me for this project report. I extend my gratitude towards my institute

Prestige Institute of Management, Gwalior for helping me to successfully complete the project

work.

INDEX

History of the Organization & Objective

Organizational Structure

Financial Performance

Material Cost Control

Production & Operations

Marketing

Strength & Weakness of the Organization.

Suggestion

Special Point

Names of the CEO/MD/Department Head

Chapter -1

Introduction

Chapter –II

Objective of The Study

Chapter –III

Result & Discussion

Chapter – IV

Suggestion

Chapter –V

Conclusion

I. INTRODUCTION

1.1 Introduction

This report is based on service comparison of pizza hut and dominos and also to analyze

financial aspect of Domino’s pizza. This report is based to test the quality of service and

comparison between two pizza Houses. The fast food industry of India is experiencing

phenomenal growth and is one of the fastest growing sectors in the country, with the

compounded annual growth rates of the market crossing 25%. Further, on the back of changing

and busy lifestyle, fast emerging middle class population and surging disposable income, the

industry will continue to grow at a pace in coming years. It now accounts for roughly half of all

restaurant revenues in the developed countries and continues to expand there and in many other

industrial countries in the coming years. But some of the most rapid growth is occurring in the

developing world; where it's radically changing the way people eat. People buy fast food because

it's cheap, easy to prepare, and heavily promoted. This paper aims at providing information about

fast food industry, its trend, reason for its emergence and several other factors that are

responsible for its growth.

This report provides extensive research and rational analysis on the Indian fast food

industry and tracks the changing dynamics of the market. It features market performance,

key related sectors and competitive landscape of the market. The research study looks into the

market condition and future forecasts, and outlines current trends and analyses. It has been made

to help clients in analyzing the opportunities, challenges and drivers vital to the growth of fast

food industry in India.

For the purpose of this report, Fast Food Industry includes fast food restaurants, teahouses,

coffee shops and juice bars in India.

Consumers will be feeling the impact of the crisis far more over the coming months and will

have to adjust their daily habits and attitudes accordingly. There are already clear signs pointing

in this direction, which are not necessarily detrimental to food retail. In times of economic crisis,

the cocooning effect tends to emerge and this involves consumers focusing increasingly on

activities within their own homes. For example, they will go out less in favor of enjoying

evenings in. These behaviors will impact primarily on the restaurant industry, with the lack of

consumption outside the home made up for by the purchase of food products to be eaten at home,

the research group noted - something which has already been seen in a number of countries.

Although only around half of consumers will actually be affected by the crisis, the situation will

have a major impact on food retail. The various sectors, industries and retail will all be affected

by the economic crisis to varying degrees. There will be losers, but also winners in this

downturn.

1.2 Objective of the study

(i) To find out the comparative analysis between Pizza-hut and dominos-pizza.

(ii) To check out the preferences of the people / or the customers.

(iii) To find out which factors are more preferred by the customers.

(iv) To find out financial soundness of domino’s pizza

1.3 Data Collection

• From the total of 50 respondents

32 are male respondents

18 are female respondents.

These results as the male are leading the sample and female showed less interest in

participating in the study;

The 18-28 Age-group are more visited Pizza outlets (32person.)

In occupation side: - More students visited the outlets rather than other occupants(24

students)

II. LITERATURE REVEW

HISTORY OF THE ORGANISATION AND

OBJECTIVE

DOMINO’S PIZZA

Dominos Pizza is the second largest franchised pizza chain in the U.S.A., and the history of

Dominos Pizza is similar to its rival Pizza hut; two brothers started it with borrowed equity in the

sixties. Tom and James Monaghan bought a small Michigan Pizzeria called Dominick's, which

was jointly run by them until James traded his share for a second hand car. Tom revitalized the

image by changing the name to Dominos Pizza .

By the late seventies there were over 200 franchise pizza businesses in the States and Dominos

Pizza was ready to go International. In 1983 Dominos Pizza opened its doors in Winnipeg, and in

Tom Monaghan, the founder of Domino's

Pizza, in his first restaurant somewhere

in the 1960s.

the same year opened its one thousandth store. Later that same year Domino's corporate history

was to begin in Australia with its first franchise in Brisbane, on the East coast.

The locations for Dominos Pizza grew quickly from here as they sprung up in all sorts of diverse

places including Bogotá. Despite Domino's Pizza springing up diverse locations, they were still a

very traditional company. Domino's Pizza menu had been kept very simple and streamlined;

they only sold one type of pizza crust which they named the regular pizza. Domino's Pizza dough

was shaped by tossing the dough and pulling it into shape. The pizza menu included just two

sizes of dough, it was not until much later that competition forced them to add a medium and

extra large sized pizza. There were no such things as side orders you could have Pizza, pizza or

Pizza and you could only drink a Coke with it.

In 1989 the history of Domino's Pizza was to change when the Deep Pan pizza was introduced,

for the first time in twenty five years the company was being forced to react to market demand.

This move consolidated the financial base and ensured the growth of Domino's Pizza , as the

same year they opened their five thousandth store.

For many years the company had advertised that if the delivery of their pizzas took longer than

thirty minutes then the pizza would be delivered free. This was parodied by the Teenage Mutant

Ninja Turtles movie which specified the "pizza dude has 30 seconds" to complete the delivery.

The turtles pizza was late and they received a refund of $3 for "being two minutes late, dude!"

However the benefits to Domino Pizza was enormous as millions of kids were to hear the name

of Domino Pizza endorsed on celluloid.

By 1994 Dominos Pizza marketing policy widened as chicken wings were introduced to the

menu. At the same time the company hit the African continent as they opened a store in Egypt .

By 1996 Dominos Pizza website was launched and the company declared global sales of nearly

$3 billion.

Despite their reluctance to add a wider range menu they have as a company given the pizza

industry many innovations that have now become standard. The belt driven pizza oven was the

invention of Domino Pizza and they began using corrugated cardboard delivery boxes which

were very effective at holding the heat within the pizza during the delivery time. Ever mindful of

the fact that a cold pizza must be about the worst dining experience on earth Dominos pizza

introduced the "Heat Wave," a portable electrical bag system that keeps the pizza hot during

delivery.

By 1997 they had also had an internal modern facelift as their stores were all brightened up and

the company introduced a new logo. Domino Pizza continued to grow exponentially and in 1997

they opened seven stores in one day but on 5 different continents.

In 2004, Super Bowl Sunday was the most hectic

pizza delivery day of the year when Dominos Pizza

sold over a million pizzas, which was an increase of

42 percent on their normal Sunday trading volume.

As the company continues to grow so rapidly it is just

as well the practice of adding a dot onto the logo was

discontinued after three outlets as Dominos Pizza

now has over seven thousand outlets globally.

DOMINO’S PIZZA TIMELINE

1960s

Tom Monaghan and his brother James purchase "DomiNick's," a pizza store in Ypsilanti,

Michigan. Monaghan borrowed $500 to buy the store. James trades his half of the business to

Tom for a Volkswagen Beetle. Tom Monaghan is sole owner of company, and renames the

business "Domino's Pizza, Inc." The first Domino's Pizza franchise store opens in Ypsilanti,

Michigan.

1970s

Despite its high turnover, Domino's was $1.5 million in debt. By 1970, its creditors took action

and 200 lawsuits were filed against it. Monaghan lost control of the company to the banks, only

The Domino's Pizza Logo

to have it returned to him 10 months later in worse condition than when they had taken it over.

Monaghan and his wife managed to salvage what was left of the company and once again took

off in pursuit of their dreams.

1980s

In 1983 the company celebrated the opening of its first international store in Winnipeg, Canada.

Domino's Pizza International, which Monaghan called the company's "hope for the future,"

became in part responsible for much of the company's later movement and growth. 1983 also

saw the opening of the company's 1000th store in Colorado Springs, Colorado. After a quarter of

a century of honing its pizza making and delivery systems, Domino's Pizza knew the pizza

delivery business. In 1985 tens of thousands of customers around the world showed their

confidence in the company by ordering 135 million pizzas during that year, an astonishing 69%

increase over the previous year's sales. By 1989 Domino's had opened its 5000th store.

1990s

Domino's Pizza signs its 1,000th franchise. Domino's rolls out Breadsticks, the company's first

national non-pizza menu item. Crunchy Thin Crust pizza is rolled out nationwide. The company

discontinues the 30-minute guarantee and re-emphasizes the Total Satisfaction

Guarantee.Domino's Pizza International division opens its 1,000th store. First store opens on

African continent, in Cairo, Egypt. Domino's launches its web site on the Internet

(www.dominos.com). The company reaches record sales of $2.8 billion system-wide. Domino's

Pizza opens its 1,500th store outside the United States, opening seven stores in 1 day on 5

continents consecutively. Domino's Pizza launches a campaign to update the company logo and

store interior with brighter colors and a newer look.

2000s

Domino's Pizza International opens its 2,000th store outside the United States. Domino's Pizza

celebrates 40 years of delivering pizza and innovation to homes around the world. Domino's

7,000th store opens in Brooklyn, New York. Domino's launches long-term national partnership

with the Make-A-Wish Foundation®. In February 2002, Domino's Pizza acquired 82 franchised

stores in the Phoenix, Ariz., market, making it the largest store acquisition in the company's

history. In August 2002, Domino's kicked delivery up a notch with the introduction of Domino's

Pizza Buffalo Chicken Kickers and marked the creation of a whole new surprising category -

premium chicken delivered right to the door! Domino's launches Domino's Cheesy Dots,

delicious round balls of dough covered in a blend of zesty melted cheeses. Domino's becomes an

associate sponsor for the Drive for Diversity program, a minority driver development program

designed to provide a steady pipeline of well trained and supported minority drivers for the

NASCAR circuit.Domino's Pizza, Inc., the recognized world leader in pizza delivery, begins

trading common stock on the New York Stock Exchange (NYSE) in July 2004, under the new

ticker symbol "DPZ." Domino's announces a three-year partnership with St. Jude Children's

Research Hospital. St. Jude was selected as Domino's "charity of choice" by franchisees and

team members.

2010

After years of languishing near the bottom of consumer taste perception studies,Domino's

proudly boasts its research-backed wins over Papa john,s and pizza Hut in a national taste test of

hand-tossed pepperoni pizza,sausage pizza and extra-cheese pizza chairman and CEO David

A.Brandon steps down as CEO effective March 7 and the Board of Director's Sucessor . elect

j.Patrick Doyle as Brandon's sucessor . Brandon will be retained by the Compan as a Special

adivisor for the remainder of 2010 and continue as a non-executive Chairman of the

Board.Concurrently,the University of Michigan announces Brandon will serve as its next

Director of intercollegiate Athletics. Dominos opened its 9,00th store on March 11.

Domino’s Pizza India LimitedJubilant FoodWorks Limited, a Jubilant Bhartia Group Company holds the Master Franchisee

Rights for Domino's Pizza for India, Nepal, Sri Lanka and Bangladesh. The company has been

listed on the Indian bourses recently. Prior to Sep 24, 2009, the company was known as

Domino's Pizza India Limited and underwent a name change, rest of the terms remaining the

same. The promoters of the company are Mr. Shyam S Bhartia, Mr. Hari S Bhartia and Jubilant

Enpro Private Ltd. Domino's Pizza opened its first store in India in January 1996, at New Delhi.

Today Domino's Pizza India has grown into a countrywide network of more than 300 stores with

a team of over 9,000 people. According to the India Retail Report 2009, we were the largest

Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007

and 2008-2009 in terms of number of stores.

Over the period since 1996, Domino's Pizza India has remained focused on delivering great

tasting Pizzas and sides, superior quality, exceptional customer service and value for money

offerings. We have endeavored to establish a reputation for being a home delivery specialist

capable of delivering pizzas within 30 minutes or else FREE to a community of loyal consumers

from all our stores around the country.

Domino's vision is focused on " Exceptional people on a mission to be the best pizza delivery

company in the world! ". We are committed to bringing fun, happiness and convenience to lives

of our consumers by delivering delicious pizzas to their doorstep and our efforts are aimed at

fulfilling this commitment towards a large and ever-growing customer base.

Domino's constantly strives to develop products that suit the tastes of our consumers and hence

delighting them. Domino's believes strongly in the strategy of 'Think global and act local'. Thus,

time and again we have been innovating with delicious new products such as crusts, toppings and

flavours suitable to the taste buds of Indian Consumers. Further providing value for money and

affordable products to our consumers has been an important part of our efforts. Our initiatives

such as Fun Meal and Pizza Mania have been extremely popular with consumers looking for an

affordable and value for money meal option.

Over a period since 1996, Domino's Pizza India has established a reputation for being a home

delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal

customers from its entire stores around the country. Customers can order their pizzas by calling

the single countrywide "Hunger Helpline" - 1600-111-123 and Domino’s was the first one to

start this facility for its customers.

Domino’s vision is “Exceptional people on a mission, to be the best pizza delivery company in

the world!”. Domino’s is committed to bringing fun and excitement to the lives of our customers

by delivering delicious pizzas to their doorstep in 30 minutes or less, and all our strategies work

for fulfilling this commitment towards our large and ever-growing customer base.

Domino's constantly strives to develop the product that suits the taste of its customers to bring

out the 'WOW' effect (i.e. the feel good factor). Domino’s believes in the strategy of “Think local

and act regional” that is blended with a playful image personified by our "Hungry Kya?"

positioning. Thus, time and again Domino’s has been innovating toppings, suitable to the

tastebuds of the locals and these have been very well accepted by the Indian market, are doing

extensively well in the market. We are constantly in the process of innovating further; we

introduce new topping every 3 –4 months

Domino’s understands customers demand and is constantly developing local flavors

understanding the local sentiments. Also, the ingredients, sauces etc. are made keeping in mind

the taste buds of Indian consumers while retaining the international flavor.

Domino’s constantly strive to make the company an integral part of the lives of the target

audiences by getting involved with the clientele at the emotional level and building long-term

relationship with them. Thus, Domino’s concentrate more on carrying out below-the-line

activities in the area it serves.

Domino’s believe in bringing fun and excitement into the lives of our clientele. We take our

delivery proposition very seriously and our entire corporate ethic is based on it. Domino's is the

recognized world leader in Pizza delivery. But it isn't just about delivering; it's also about giving

back to the community. Domino’s believes that an essential component of corporate

responsibility is to provide support to charitable organizations that benefit the communities

where its employees and customers work and live. Domino’s worldwide is known for its

commitment toward social causes and believes in adding fun to the lives of our customers and

communities it serves.

In India, Domino’s has been associated with the NGO’s devoted to the cause of underprivileged

Children’s. Domino’s conducts Store Educational Tour (SET) for the underprivileged children

time-to-time. Recently this was done in the one of the Domino’s outlet in Delhi and Mumbai

with the underprivileged children from CRY (Child Relief and You) where Domino’s took the

pledge to provide part-time employment to the eligible wards from CRY who are above 18 years,

reiterating its commitment towards social causes. Also, fifty- percent of that day’s first 20

deliveries of the store were given to CRY toward the cause of the underprivileged children. The

children had a gala time while they learned to make and bake pizzas at the store and finally

tasted the sumptuous offerings made by them during the Store Educational Tour.

Domino’s Pizza India also boasts about its commitment to serve its customers on time by

implementing the “30 MINUTES OR FREE” service commitment, they have been able to

achieve this as a result of continuous efforts and dedication of the entire team in improving

operating efficiencies.

Domino’s Pizza India has been consistently rated amongst the top 2 pizza chains worldwide in

the Domino’s family by Domino’s International, in terms of quality of operations. Our pizza

delivery times have also been judged as the best delivery times in the world across all Domino’s.

Dominos pizza Gwalior menu card

KEY INFORMATION

Domino's Pizza, LLC

Type Public (NYSE: DPZ)

Industry Restaurants

Founded Ypsilanti, Michigan, U.S. (1960)

Headquarters Ann Arbor, Michigan, U.S.

Key peopleTom Monaghan, Founder

J. Patrick Doyle, CEO

Products Pizza, sandwiches, pasta, chicken wings, desserts

Revenue ▲ $1.425 billion USD (2008)

Employees 145,000

Website www.dominos.com

Chairman of board of directors CEO, Domino’s Pizza India Ltd

David Brandon Ajay Kaul

(Non Executive) (CEO)

CEO

J. Patrick Doyle

FINANCIAL PERFORMANCE

Domino's Pizza India is beating the downturn, helped by the rising popularity of delivery

services in India and more geographical expansion, the latest being an outlet opened in Gangtok

this week, which on the first day clocked sales in excess of a Rs 1 lakh with 500 to 600

orders.Budgets too have been scaled up. Ad budget, for instance, has been upped by 50% from

last year's Rs 14 crore; as has the training budget, which is up 75% this year. The fast food

industry is Rs 1,800-crore to Rs 2000-crore business, of which, as per our estimates, organised

pizza players market comes to Rs 650 crore, and Domino's dominates this with a 44%

marketshare. Additionally, our company makes everything in-house, including its propriety

recipe dough, at its four commissaries in Delhi, Mumbai, Bangalore and Calcutta.

Today, Domino's is present in 47 cities in India. Last year, we opened stores in 8 to 9 new cities,

this year we have added 15 to 20 cities. Research shows that majority of Indians eat pizzas once

a year, compared with the US, where the average customer eats pizzas a few times a month, even

so because of population, the pizza market is still growing in India by 20%. Domino's has

witnessed a CAGR of 40 to 42% in the past few years. For instance, we were surprised with the

response to our new store in Gangtok, the kind of response we may have expected in Indore,

Gwalior or Nagpur, cities with a much larger population.

Business Performance

In 2008, global retail sales, which are total retail sales at Company-owned and franchise stores

worldwide, increased 1.4% as compared to 2007. This increase in global retail sales was driven

by strong international same store sales growth as well as growth in worldwide store counts,

offset in part by a decrease in domestic same store sales and negative foreign currency

translation impacts on their international sales. In 2007, global retail sales increased 6.6% as

compared to 2006.This increase in global retail sales was driven by strong international same

store sales growth as well as growth in worldwide store counts, offset in part by a decrease in

domestic franchise same store sales Revenues increased $25.6 million or 1.8% in 2007 and

decreased $37.8 million or 2.6% in2008.The increase in revenues in 2007 was largely due to

higher domestic supply chain revenues, due primarily to higher food prices, including cheese.

The decline in 2008 was due primarily to lower Company-owned store and domestic franchise

revenues, driven primarily by Company-owned store divestitures, lower same store sales and

lower volumes in our domestic supply chain operations. Worldwide store counts have increased

from 8,079 at the beginning of 2006 to 8,773 at the end of 2008. This growth in store counts can

be attributed to the growing global acceptance of the brand and pizza delivery concept as well as

the economics inherent in their system which attracts new franchisees and encourages existing

franchisees to grow business. Domestic same store sales decreased 4.1%, 1.7% and 4.9% in

2006, 2007 and 2008, respectively. International same store sales increased 4.0%, 6.7% and

6.2% during the same periods. The Company’s domestic same store sales results in 2006, 2007

and 2008 reflected the underperformance of their product and promotional offerings during those

years, continued challenges in domestic business and a weak consumer environment.

Internationally, same stores sales growth continues to result from the growing acceptance of

delivered pizza around the globe and the successful execution of the concept. It is highly

leveraged primarily as a result of its recapitalization in 2007.As of December 28, 2008,

consolidated long-term debt was $1.7 billion. Since 1998, a large portion of its cash flows

provided from operations has been used to make principal and interest payments on its

indebtedness as well as distributions to shareholders in the form of dividends and stock

repurchases. Its securitized debt requires no scheduled principal payments until anticipated

maturity in 2012. Overall, It believes that its ability to consistently produce significant free cash

flows allows the flexibility not only to service its significant debt but also to invest in their

growing business as well as return cash to shareholders.

Critical accounting policies and estimates

Revenue recognition. They earn revenues through their network of domestic Company- owned

and franchise stores, dough manufacturing and supply chain centers and international operations.

Allowance for uncollectible receivables. They closely monitor their accounts and notes

receivable balances and provide allowances for uncollectible amounts as a result of reviews.

These estimates are based on, among other factors, historical collection experience and a review

of receivables by aging category. Long-lived and intangible assets. They record long-lived

assets, including property, plant and equipment and capitalized software, at cost. For acquisitions

of franchise operations,They estimate the fair values of the assets and liabilities acquired based

on physical inspection of assets, historical experience and other. Insurance and legal matters. If

estimation relating to legal matters proved inaccurate for any reason, they may be required to

increase or decrease the related expense in future periods. At December 30, 2007 and December

28, 2008, They had approximately $8.2 million and $2.9 million, respectively, accrued for legal

matters. For certain periods prior to December 1998 and for periods after December 2001,they

maintain insurance coverage for workers’ compensation, general liability and owned and non-

owned auto liability under insurance policies requiring payment of a deductible for each

occurrence up to between $500,000 and $3.0 million, depending on the policy year and line of

coverage. Income taxes. Their net deferred tax assets assume that they will generate sufficient

taxable income in specific tax jurisdictions, based on estimates and assumptions. The amounts

relating to taxes recorded on the balance sheet, including tax reserves, also consider the ultimate

resolution of revenue agent reviews based on estimates and assumptions. If these estimates and

assumptions change in the future, They may be required to adjust their valuation allowance or

other tax reserves resulting in additional income tax expense or benefit in future periods.

Same Store Sales Growth

Store Growth Activity

KEY FINANCIAL INDICATORS

The selected financial data below, with the exception of store counts and same store sales

growth, have been derived from the audited consolidated financial statements of Domino’s

Pizza,Inc.

Domino's Pizza Inc: Financial Statement

Financial data in U.S. Dollars Values in Millions (Except for per share items)

  2009 2008 2007 2006 2005Period End Date 01/03/2010 12/28/2008 12/30/2007 12/31/2006 01/01/2006Period Length 53 Weeks 52 Weeks 52 Weeks 52 Weeks 52 WeeksStmt Source 10-K 10-K 10-K 10-K 10-KStmt Source Date 03/02/2010 02/24/2009 02/26/2008 02/23/2007 03/03/2006Stmt Update Type Updated Updated Updated Updated Updated           

Revenue 1,404.06 1,425.11 1,462.87 1,437.32 1,511.6Total Revenue 1,404.06 1,425.11 1,462.87 1,437.32 1,511.6

           Cost of Revenue, Total 1,017.08 1,061.85 1,084.02 1,052.79 1,126.31

Gross Profit 386.98 363.26 378.85 384.53 385.29

           Selling/General/Administrative

Expenses, Total197.47 168.23 184.94 170.33 186.18

Research & Development 0.0 0.0 0.0 0.0 0.0Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0

Interest Expense (Income), Net Operating

0.0 0.0 0.0 0.0 0.0

Unusual Expense (Income) 0.0 0.0 0.0 0.0 0.0Other Operating Expenses, Total 0.0 0.0 0.0 0.0 0.0

Operating Income 189.51 195.03 193.91 214.2 199.1           

Interest Income (Expense), Net Non-Operating

0.0 0.0 0.0 0.0 0.0

Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0Other, Net 56.28 0.0 -13.29 0.0 22.08

Income Before Tax 135.52 82.87 55.56 160.43 173.25           

Income Tax - Total 55.78 28.9 17.68 54.2 64.97Income After Tax 79.74 53.97 37.88 106.23 108.28

           Minority Interest 0.0 0.0 0.0 0.0 0.0

Equity In Affiliates 0.0 0.0 0.0 0.0 0.0U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0

Net Income Before Extra. Items 79.74 53.97 37.88 106.23 108.28           

Total Extraordinary Items 0.0 0.0 0.0 0.0 0.0Net Income 79.74 53.97 37.88 106.23 108.28

                      

Total Adjustments to Net Income 0.0 0.0 0.0 0.0 0.0Preferred Dividends

General Partners' Distributions           

Basic Weighted Average Shares 57.41 57.76 62.18 63.14 66.89Basic EPS Excluding Extraordinary Items 1.39 0.93 0.61 1.68 1.62Basic EPS Including Extraordinary Items 1.39 0.93 0.61 1.68 1.62           

Diluted Weighted Average Shares 57.83 58.34 63.79 64.54 68.65Diluted EPS Excluding Extrordinary

Items1.38 0.93 0.59 1.65 1.58

Diluted EPS Including Extraordinary Items

1.38 0.93 0.59 1.65 1.58

           Dividends per Share - Common Stock

Primary Issue0.0 0.0 0.0 0.48 0.4

Gross Dividends - Common Stock 0.0 0.0 846.4 29.84 26.9Interest Expense, Supplemental 110.95 114.91 130.37 55.01 48.78

Depreciation, Supplemental 21.8 22.7 24.2 25.5 25.6           

Normalized EBITDA 161.53 210.52 275.7 243.17 213.41Normalized EBIT 137.83 182.52 244.9 211.37 181.0

Normalized Income Before Tax 83.85 70.36 106.55 157.6 155.14Normalized Income After Taxes 50.53 43.65 65.91 100.66 98.17Normalized Income Available to

Common50.53 43.65 65.91 100.66 98.17

           Basic Normalized EPS 0.88 0.76 1.06 1.59 1.47

Diluted Normalized EPS 0.87 0.75 1.03 1.56 1.43Amortization of Intangibles 1.9 5.3 6.6 6.3 6.82

Revenues. Revenues include retail sales by Company-owned stores, royalties from domestic and

international franchise stores and sales of food, equipment and supplies by supply chain centers

to certain domestic and international franchise stores.Consolidated revenues decreased $37.8

million or 2.6% in 2008. This decrease in revenues was due primarily to lower Company-owned

store and domestic franchise revenues, driven primarily by Company-owned store divestitures,

lower same store sales and lower volumes in domestic supply chain operations offset in part by

higher international revenues. These decreases in revenues are more fully described below.

Domestic stores. Domestic stores revenues are comprised of retail sales from domestic

Company-owned store operations and royalties from retail sales at domestic franchise stores, as

summarized in the following table.

Domestic Company-owned stores. Revenues from domestic Company-owned store operations

decreased $36.9 million or 9.3% in 2008. This decrease was due primarily to store divestitures,

primarily to existing franchisees, during 2008 and lower same store sales. Domestic Company-

owned same store sales decreased 2.2% in 2008 compared to 2007. There were 571 and 489

domestic Company-owned stores in operation as of December 30, 2007 and December 28, 2008,

respectively.

Domestic franchise. Revenues from domestic franchise operations decreased $4.2 million or

2.7% in 2008. This decrease was due primarily to lower same store sales and a decrease in the

average number of domestic franchise stores open during 2008. There were 4,584 and 4,558

domestic franchise stores in operation as of December 30, 2007 and December 28, 2008,

respectively. Domestic franchise same store sales decreased 5.2% in 2008 compared to 2007.

20

Domestic supply chain. Revenues from domestic supply chain operations decreased $12.2

million or 1.6% in 2008. This decrease was due primarily to lower volumes, related to decreases

in domestic same store sales and were offset in part by an increase in overall food prices,

including cheese prices. Cheese prices positively impacted revenues by approximately $11.1

million in 2008. International. International revenues are primarily comprised of royalties from

our international franchise stores and sales of food and supplies by international supply chain

centers to certain franchise stores.

Interest income. Interest income decreased $2.6 million to $2.7 million in 2008. This

decrease was primarily due to $1.5 million of tax-exempt interest income that was earned in

2007 on funds received in connection with the Company’s 2007 recapitalization.

Franchisees

The rights to own, operate and franchise branches of the chain owns the master franchisee for

Domino's Pizza in India by Jubilant Group and in Australia, New Zealand,

France, Belgium, the Netherlands and the Principality of Monaco are currently owned

by Domino's Pizza Enterprises, having been sold off by the parent company between 1993 and

2007. The master franchises for the UK and Ireland were purchased by Domino's Pizza Group

(now publicly traded as Domino's Pizza UK & IRL) in 1993.

Major franchises-

Domino's Pizza Enterprises

Domino's Pizza UK & IRL

Franchisor has 350 employee(s); 75 employee(s) in franchise department

FINANCE REPORT

CEO REPORT

At the beginning of 2008-09, Domino’s Pizza was aware of the looming uncertainty in the

economic environment and the flow- on effect if may have with consumers, particularly in the

food space. We knew we had the ability to offer great value, through product, service and

image, but what we wanted to do was create a whole new experience for customers which they

may not have expected from number one pizza maker

22.5% of sales now coming from online ordering.

Website is ranked number one for “Food and Beverage Restaurants and Catering”.

France opens its 150th store.33% of stores convert to online ordering in Europe.

Average delivery time has dropped by more than 21%.

Choc Lava Cake was a finalist in the Food Magazine Challenge Awards 2009 and has sold

more than 1.5 million units.

Unassisted brand recognition has increased 35% in France.

Over the past 12 months Domino’s has created more than 3,000 jobs across Australia and

New Zealand

PERSONAL POLICIY

ECLUB DATABASE

Brand loyalty has also grown signifi cantly with eClub member database. Each month tens of

thousands of people join to receive special Domino’s offers and communication direct to

their email box. With a database reaching into the hundreds of thousands, weekly Electronic

Direct Mail (EDM) pieces have given us the opportunity to target offers to a store’s local

area, resulting in greater loyalty. The growth in our eClub database has also enabled

Domino’s to drive the creative look and feel of EDMs including personalised CEO letters

and themed pieces around new menu items and signifi cant calendar events.

ONLINE ADVERTISING

Greater integration across all media channels for the new menu launch in February 2009

helped increase Domino’s presence in online advertising which resulted in great profi ling

opportunities for online ordering capabilities. All Domino’s banner advertising, including the

successful Choc Lava Cake banner, includes a click through function enabling customers to

place an order immediately after seeing an online banner.

iPHONE

Over the next few months Domino’s will launch a dedicated iPhone application for

online ordering.As our customers and the broader Australian market adopt new technologies,

Domino’s is committed to ensuring we remain at the forefront with new innovations. The

iPhone application will provide customers with greater freedom to order their favourite

Domino’s meal wherever they are. This Australian-first for the pizza industry will help drive

online business and cement the position as the leading innovator.

E-Commerce

In 1999, Domino’s Pizza became the first pizza delivery company in the world to offer

nation-wide internet and interactive television ordering. Delivered pizza can be ordered via

website (www.dominos.co.uk) or via any of the UK’s major interactive TV services.

Future plans

According to Yum! Restaurants International, India is amongst the top five growth markets for

Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident

about expanding its operations in India.

Pizza Hut hopes to increase the number of Pizza Hut outlets in India to 180 by the end of 2008

from the present figure of 130. The expansion programmed will make Pizza Hut the fastest

growing western restaurant chain in India. In addition, Yum! plans Pizza Hut to be in 42 cities by

end of 2007, and 55 cities by end of 2008.

MARKETING OPERATIONS

Domestic stores contribute between 4% to 5% of their retail sales to fund national marketing

and advertising campaigns advertising programs. It also contribute to market-level media

campaigns. These national and market-level funds are administered by Domino’s National

Advertising Fund Inc., or DNAF, not-for-profit advertising subsidiary.

The funds remitted to DNAF are used primarily to purchase television advertising.

DNAF also provides cost-effective print materials to domestic stores for use in local

marketing that reinforce national branding strategy. In addition to the national and market-

level advertising contributions, domestic stores spend additional amounts on local store

marketing, including targeted database mailings, saturation print mailings and community

involvement through school and civic organizations. Additionally, we may from time-to-time

partner with other organizations in an effort to promote the Domino’s Pizzabrand.By

communicating a common brand message at the national, local market and store levels, we

create and reinforce appowerful, consistent marketing message toconsumers. This is

evidenced by successful previous marketing campaign with the slogan “Get the Door. It’s

Domino’s.” and current marketing campaign with the slogan “You Got 30 Minutes.™” Over

the past five years, it estimates that domestic stores have invested approximately $1.4 billion

on national, local and co-operative advertising.

Third-party suppliers

The active relationships of 15 years or more with more than half of major suppliers.

Suppliers are required to meet strict quality standards to ensure food safety. They review and

evaluate suppliers’ quality assurance programs through, among other actions, on-site visits,

third party audits and product evaluations to ensure compliance with standards. They believe that

the length and quality of relationships with suppliers provides them with priority service and

quality products at competitive prices. They currently purchase pizza cheese from a single

supplier. In 2007, the Company entered into a new arrangement with this supplier. Under this

arrangement, the supplier agreed to provide an uninterrupted supply of cheese and the

Company agreed to a five year pricing period during which it agreed to purchase all of its

primary pizza cheese for the Company’s United States stores from this supplier or, alternatively,

pay to the supplier an amount reflecting any benefit previously received by the Company under

the new pricing terms.

Trademarks It has many registered trademarks and service marks and believe that the Domino’s mark and

Domino’s Pizza names and logos have significant value and are important to business. Its

policy is to pursue registration of trademarks and to vigorously oppose the infringement of

any of its trademarks. It license the use of registered marks to franchisees through franchise

agreements.

Risk Factors

Risks relating to business and industry

1. The pizza category is highly competitive, and such competition could adversely affect

operating results.

2. If it fail to successfully implement growth strategy, which includes opening new domestic

and international stores, then ability to increase revenues and operating profits could be

adversely affected.

3. The food service market is affected by consumer preferences and perceptions. Changes in

these preferences and perceptions may lessen the demand for products, which would reduce

sales and harm business.

4. Increases in food, labor and other costs could adversely affect profitability and operating

results.

5. Not having long-term contracts with certain suppliers, and as a result they could seek to

significantly increase prices or fail to deliver.

6. Shortages or interruptions in the supply or delivery of fresh food products could adversely

affect operating results.

7. Any prolonged disruption in the operations of any of dough manufacturing and supply

chain centers could harm business.

8. Loss of key personnel or inability to attract and retain new qualified personnel could hurt

business and inhibit ability to operate and grow successfully.

9. International operations subject us to additional risk. Such risks and costs may differ in

each country in which we do business, and may cause profitability to decline due to increased

costs.

10. Fluctuations in the value of the U.S. dollar in relation to other currencies may lead to

lower revenues and earnings.

11.Earnings and business growth strategy depends on the success of franchisees, and may be

harmed by actions taken by franchisees that are outside of control.

STORE OPERATIONS

Dominos believe that its focused and proven store model provides a significant competitive

advantage relative to many of its competitors who focus on multiple components of the pizza

category, particularly dine-in. It has been focused on pizza delivery for 48 years. Because its

domestic stores and most of their international stores do not offer dine-in areas, they typically do

not require expensive real estate, are relatively small and are relatively inexpensive to build and

equip. Dominos stores also benefit from lower maintenance costs, as store assets have long lives

and updates are not frequently required. Dominos locate its stores strategically to facilitate timely

delivery service to its customers. The majority of domestic stores are located in populated areas

in or adjacent to large or mid-size cities, or on or near college campuses. Domino’s use

geographic information software, which incorporates variables such as traffic volumes,

competitor locations, household demographics and visibility, to evaluate and identify potential

store locations and new markets.

Their simple and efficient operational processes, which they refined through continuous

improvement, include:

Production-oriented store designs

Dominos store is relatively small, occupying approximately 1,000 to 1,300 square feet, and is

designed with a focus on efficient and timely production of consistently high quality pizza for

delivery. The store layout has been refined over time to provide an efficient flow from order

taking to delivery. Its stores are primarily production facilities and, accordingly, do not typically

have a dine-in area.

Product and process innovations

Dominos 48 years of experience and innovative culture have resulted in numerous new product

and process developments that increase both quality and efficiency. These include its efficient,

vertically-integrated supply chain system, a sturdier corrugated pizza box and a mesh screen that

helps cook pizza crust more evenly. The Domino’s HeatWave hot bag, which was introduced

in 1998, keeps pizzas hot during delivery. It also continue to introduce new products such as

Domino’s Oven Baked Sandwiches, which launched in 2008. Additionally added a number of

complementary side items to menu such as buffalo wings, Domino’s Buffalo Chicken Kickers,

bread sticks, cheesy bread and Cinna Stix.

Focused menu

It maintains a focused menu that is designed to present an attractive, quality offering to

customers, while minimizing order errors, and expediting the order taking and food preparation

processes.

Its basic menu has three choices for pizza products:

Pizza type,

Pizza size

Products

The current Domino's menu features a variety of Italian-American entrees and sides. Pizza is the

primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles

and toppings. Additional entrees include pasta bread bowls and oven-baked sandwiches. The

menu offers chicken side dishes, breadsticks and salads, as well as beverages and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to

other fast food restaurants, to ensure efficiency of delivery. Historically, Domino's menu

consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coke as the

only soft drink option.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or pan pizza.

Its introduction followed market research showing that 40% of American pizza customers

preferred thick crusts. The new product launch cost approximately $25 million, of which $15

million was spent on new sheet metal pans with perforated bottoms. Domino's started testing

extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".

Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers,

as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat fillets,

similar to chicken tenders, are packaged in a custom-designed box with two types of sauce to

"heat up" and "cool down" the chicken.

In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese

Steak Pizza. The product launch also marked the beginning of a partnership with the National

Cattlemen's Beef Association, whose beef Check-Off logo appeared in related advertising.

Domino’s continued its move toward specialty pizzas in 2006, with the introduction of its

"Brooklyn Style Pizza", featuring a thinner crust, cornmeal baked in to add crispness, and larger

slices that could be folded in the style of traditional New York-style pizza.

In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked sandwiches

in four styles, intended to compete with Subway's toasted submarine sandwiches. Early

marketing for the sandwiches made varied references to its competition, such as offering free

sandwiches to customers named "Jared," a reference to Subway's spokesman of the same name.

The company introduced its American Legends line of specialty pizzas in 2009, featuring 40%

more cheese than the company's regular pizzas, along with a greater variety of toppings. That

same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned bread bowl

baked with pasta inside,[35] and Lava Crunch Cake dessert, composed of a crunchy chocolate

shell filled with warm fudge. Domino's promoted the item by flying in 1,000 cakes to deliver at

Hoffstadt Bluffs Visitor Center near Mount St Helens.

In 2010, the company changed its pizza recipe "from the crust up", making significant changes in

the dough, sauce and cheese used in their pizzas. Their advertising campaign admitted to earlier

problems with the public perception of Domino's product due to issues of tale.

Efficient order taking, production and delivery

Each store executes an operational process that includes order taking, pizza preparation, cooking

(via automated, conveyor-driven ovens), boxing and delivery. The entire order taking and pizza

production process is designed for completion in approximately 12-15 minutes. These

operational processes are supplemented by an extensive employee training program designed to

ensure world-class quality and customer service. It is their priority to ensure that every Domino’s

store operates in an efficient, consistent manner while maintaining their high standards of food

quality and team member safety.

Comprehensive store audit program

They utilize a comprehensive store audit program to ensure that their stores are meeting both

their stringent standards as well as the expectations of their customers. The audit program

focuses primarily on the quality of the pizza the store is producing, the customer service the store

is providing and the condition of the store as viewed by the customer. They believe that this store

audit program is an integral part of their strategy to maintain high standards in their stores.

THE SERVICE OPERATIONS TO SERVE THE CUSTOMERS INSIDE THE

GWALIOR FAST FOOD :

I. They asked the customers to have a seat.

II. Give them their menus.

III.The order is served within 10 to 15 minutes.

IV.They provide self service operation.

V. They also provide CRM Coupons.

VI. They give buy one get one free offer to customers.

VII. As each interaction is unique, Domino’s people job is day to day & from minute to minute.

So they told us that customer contact is the key to run a successful operation.

VIII. They said that communicating clearly with people of all ages is highly regarded.

IX. To give quality services to customer inside they groom themselves well in personal

presentation.

X. They take care of both verbal & non-verbal communication like listening & answering & how

domino’s people make use of proper space & time

XI. They have commitment to professional service.

XII .An understanding of customer needs & expectations.

XIII. Have sound knowledge of all menu & beverages items & to ensure prompt efficient

service standard operating procedures. xiv. Maintain flexible & willing attitude, service guests

using friendly, polite manner at all times.

XV. They constantly check that assigned section is clean and all tables are set up properly in

order to treat customer inside the Domino’s well. reasonable and the foods are Hygienic and Low

fat.

BULK ORDERS:

Dominos Pizza Gwalior also takes bulk orders for its corporate customers as well as for any big

gathering. Any order can be placed 2 days in advance to avoid inconvenience. Payment can be

made in cash or by Cheques in favor of "Dominos Pizza India ltd". Dominos involves itself in

various community activities like blood donation campaign, clean up drive etc. They arrange for

different competition like painting, essay, junior pizza making etc at Their store level for

children. They also cater to different college functions/events depending upon its location.

HOUSEKEEPING OPERATIONS INSIDE THE RESTAURANT

For housekeeping Domino’s gwalior use UT service, they provide proper check on cleanliness of

the restaurant; maintain cleanliness of the washroom etc.a.They make sure that all fittings are in

good working order. They check that all supplies such as toiletries & minibar stock have been

replenished. Ensuring that tables & other areas are cleaned & polished. Make sure that

furnishings & fittings including light fittings are clean & in good condition. Ensure windows are

cleaned regularly. They also told us that in housekeeping is also responsible for décor, the

selection of furnishings & wall coverings being very important. Thousands of rupees are spent

on décor & these decisions are not taken lightly. in housekeeping operations there is flexibility in

there restaurantMaintenance Housekeeping in the wet areas:Top to bottom, all corners and

edging is done on carpeted and non-carpeted floors. Everything ismoved on the counter, cleaned

behind it, the items cleaned and moved back. Not only are sinksmade to shine, but also all the

tight spaces that trap dirt are cleaned. The outsides, top to bottom,

Of all large appliances in the kitchen are cleaned. Light fixtures are dusted; windowsills,

baseboards, and other dusting in the kitchen are done. Kitchen cabinets are cleaned for

fingerprints and food spills that have occurred recently and can be recovered with wiping a wet

or damp cloth. The floor is edged for crumbs with a vacuum, then vacuumed thoroughly and

washed. Food that is stuck to a floor is not ignored. On an as-need-basis, the floor is washed by

hand around the edges.They can do the whole package pulling out a fridge or oven wiping them

clean and everything in between All of Their work is 100% guaranteed. If customers are not

happy with Domino’s cleaning, simply call them within 24 hours. During summer seasons their

sales increases, Number of staff is more as compared to winter seasons Total number of staff is

around 35-40, Income per month is around 35 lakhs.

IEquipment

Fresh and delicious pizza has always been a priority at Domino's Pizza.

Domino's was the first to use a fibre glass tray for dough, which

simplified dough handling and ensured better preservation. Domino's

was the innovator behind the sturdy, corrugated pizza box, which

prevents moisture from making the box soggy and stops the cheese

sticking to the top during delivery. A delicious, crisp crust is one of the

most important parts of the pizza. In search of the perfect crust,

Domino's developed the pizza screen, a mesh tray that helps cook the

pizza base moreEvenly than a tray made of wood or stainless steel.

Today it's hard to miss pizza delivery cars -thanks to Domino's Pizza.

Domino's invented the 3-D car-top sign, which is currently used by

avariety of industries, including taxis and driving schools.

ACHEIVEMENT AND AWARDS

Domino's Pizza India won the GOLD FRANNY award for the fastest growing Domino's

franchisee in world for 3 consecutive times - 2006 2007 & 2008, presented by Domino's Pizza

Inc.

Jubilant FoodWorks Ltd won the award for "Brand Excellence in service / hospitality industry"

in CMO Asia awards by CMO council.

Leading industry publication Pizza Today magazine named Domino’s Pizza "Chain of the Year" in 2003.

2009 - Domino's won the top 25 Marketers of 2009 award presented by a leading Marketing

Journal Pitch and exchange4media

2009 - Recognized as one of the 10 brands that have changed the consumer behavior and set new

trends in last decade, presented by Brand reporter & agency faqs

2008: Dominos Pizza India won 1 International and 2 Asia Pacific awards

'Trainer of the year' - Domino's International.

'Supervisor of the year' - Asia Pacific

'Rookie Manager of the year' - Asia Pacific

2007: Dominos Pizza India won 1 International and 3 Asia Pacific awards

'Supervisor of the year'- Domino's International.

'Rookie Manager of the year' - Asia Pacific

'Manager of the year' - Asia Pacific

'Trainer of the year' - Asia Pacific

2006: Dominos Pizza India won 1 International and 2 Asia Pacific awards

'Manager of the year' - Domino's International.

'Supervisor of the year' - Asia Pacific

'Rookie Manager of the year' - Asia Pacific

2004 / 2005 / 2009 Franchise Award - Award for Excellence in Franchising and Business

Development. Dominos Customer Service Food and Beverages

2006/2007/2008 Distinguished Achievement Award of the International Franchising Association

presented to Dominos Pizza India

CEO Awards- Ajay Kaul (CEO India Subcontinent - Dominos Pizza India)

Mr. Ajay Kaul won CEO with HR Orientation in Asia's Best Employer Brand Awards - 2010 by

World HRD Congress.

2010- Golden Spoon Award - Most Admired Food Professional Of The Year In Food And

Beverages

2009- Star Youth Achievement award

III. COMPARITIVE STUDY BETWEEN DOMINO’S PIZZA AND PIZZA

HUT

PIZZA HUT INDIA

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has

captured a dominant and significant share of the pizza market and has maintained an impressive

growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India;

and employed nearly 4,000 people by end of 2004. Yum! has invested about US$ 25 million in

India so far; this is over and above investments made by franchisees.

Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum!

Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long John Silver’s

restaurants worldwide. Yum! Generated more than US$ 25.9 billion in worldwide sales in the

year 2003, and has more than 33,000 restaurants in over 100 countries.

Market share

Pizza Hut is believed to have close to 50 per cent market share of the organized pizza-retailing

segment in India.

Financial performance

According to an article in Financial Express, the market size of the pizza segment is around US$

87 million and currently growing at the rate of 15 per cent to 17 per cent per annum. According

to Pizza Hut sources, most of their outlets are financially successful, encouraging further

expansion. In India, the average investment for each outlet is US$ 275,000-335,000 and is borne

by the franchisee.

The 6000 corer fast food retail industry is mainly dominated by the multinational players

and the key players which are active in the research of the food retailing include:

• McDonalds

• Wendy's

• Papa John's

• International and California Pizza Kitchen

Leveraging the India Advantage : International brand with an Indian heart

Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at

Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even

opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious

community, whose members prefer not to eat at places where meat is served.

Offering more than the international menu

International food chains typically offer only a few localised products in other parts of the world.

However, Pizza Hut’s local menu is as large as the international one. According to Pizza Hut, the

Indian food heritage is very rich, and hence Indians like local flavours. The Tandoori range of

pizzas, which was developed locally, has a menu mix of over 20 per cent.

Indigenous sourcing of raw materials

Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a

local company Dynamix Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese. The

landed cost of imported mozzarella comes to US$ 3.3 - 3.5 per kilogram. The domestic price,

however, works out to US$ 2.99 - 3.1 per kilogram. Pizza Hut is adding to the bottom line by

localising equipment as well as by paying attention to inventory replenishment, which has been

reduced from 60 to 30 days.

IV. SUGGESTION / RECOMMENDATION

For Dominos

• Increase varieties in Pizza’s.

• Focus on location of the outlets.

• Increase the quality of Pizza’s

• Make good ambiance in outlets

• Should focus more on market zing itself confidently.

For Pizza-Hut

Try to attract more number of Ladies customers.

Should focus on Low price customers.

• Make the door step services better

V.SUMMARY

From the comparative study of these two Fast food chains Pizza hut and Domino’s we

understand that on which front, which company is weaker than others. As we know that Pizza

hut is the largest pizza restaurant company in the world with 12000 outlets in 90 countries and it

enters in INDIA in 1996where as The Domino’s pizza enters in INDIA in 1995 and now it has

220 outlets in India. But after all Domino’s which has First mover advantage and customer base;

cannot succeed as most favorable brand in between the people of those who likes Pizzas.

From this study we know that pizza hut makes its number 1 position in between peoples. And in

the preference side people also prefer Pizza hut rather than dominoes. In price category the price

of the pizza is less in Domino’s rather than pizza-hut but once again the quality of pizza and the

conditions which is imposed by the dominoes for door-steps services makes domino’s less

attractive.

VI. CONCLUSION

Keeping up the sentiments of Indian customers and services offered by Pizza-houses and

Keeping our study focused on some of the key –areas of sensitivity of customers preferences

(analysis of factors which affects the preferences).

We come to a conclusion that: -

Pizza –hut is preferred over dominos in terms of

Varity of Pizza’s

Good ambience

Services offered

Quality of pizza’s

Location of the Outlet

Waiting time in the outlet

Domino’s is being preferred over pizza-hut in terms of: -

Door step services

Low pricing

So we can say that due to these qualities Pizza-hut dominates Dominos –pizza

In different areas and capture the market share and gain rapidly.

BIBLIOGRAPHE

Books, Magazine & Journals/ Newspaper:

(i)Domino's Pizza Delivers 8,000th Store". QSR Magazine. 27 January 2006

(ii) Joshua Ozersky (29 January 2010). "Domino's Mea Culpa and America's Pizza Passions".

Time Magazine.

Internet:

www.dominos.co.in

www.google.co.in