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Domino's Franchise in India: Cost, Fee, Profit & How to Apply
Guest Author
Dec 01, 2023 -
10 min read
Domino's Pizza, a global pizza giant, has left an indelible mark on the culinary landscape of India. From its humble beginnings to its current status as a pizza powerhouse, Domino's journey in the Indian market is a testament to adaptability, innovation, and a keen understanding of local tastes.
Starting a Domino's franchise in India can be an attractive prospect given the country's pizza affinity. With the established brand's popularity and the pizza craze sweeping the nation, Domino's presents a lucrative franchise opportunity. In this guide, we'll walk you through the intriguing story of Domino's in India, exploring its entry, franchise model, business growth, technological innovations, community engagement, and the promising future that lies ahead.
In the late 1990s, Domino's Pizza made its foray into the Indian market, capitalizing on the country's growing appetite for international cuisine. However, the initial journey wasn't without its challenges. Local culinary preferences, diverse cultural nuances, and competition posed hurdles that required strategic navigation.
Early Challenges and Strategies
To overcome early challenges, Domino's adopted a proactive approach. They conducted in-depth market research to understand the Indian palate, tweaking their recipes to suit local tastes. This adaptability, combined with strategic marketing, played a pivotal role in positioning Domino's as a preferred choice for pizza enthusiasts.
Adaptation to Local Tastes and Preferences
One of the key factors behind Domino's success in India is its ability to cater to diverse tastes. The menu evolved to include vegetarian options that resonate with the predominantly vegetarian Indian population. Innovations such as the introduction of spicy toppings and fusion flavors further endeared Domino's to the Indian consumer.
Talking about the Franchise Model, Domino's has used their franchise model to expand their business further in India and they've been constantly improving their franchise model to expand further and broader their horizons in india.
Domino's offers a proven business model, ongoing support, market stability, menu diversity, growth potential, and community engagement for entrepreneurial success.
Domino's in India offers three types of outlets: Traditional, Non-traditional, and Transitional.
Traditional Stores: Traditional stores are the most common type, where customers can dine in or order for delivery. These outlets have a seating area and a kitchen where the pizzas are prepared.
Non-Traditional Stores: Non-traditional stores, on the other hand, are located in places like airports, railway stations, and malls. These outlets are smaller in size and primarily focus on takeaway and delivery services.
Transitional Stores: Transitional stores are a combination of both Traditional and Non-traditional outlets. They offer dine-in services but have a smaller seating capacity compared to Traditional stores. Customers can also opt for takeaway or delivery services at these outlets.
Each of these types of outlets caters to different customer preferences and ensures that Domino's Pizza is accessible to a wide range of people in India.
The investment required for a Domino's franchise varies on the store model you are planning to open.
An investor must have an ability to invest INR 1.25 Cr (INR 125 Lacs) or more as this is minimum investment that will be required for Domino’s Sub Franchise store. This investment is over and above the property that you may own or will plan to take it on lease / rentals.
This includes the franchise fee, which is typically around INR 25 lakhs, as well as the costs associated with setting up the store, equipment, inventory, and other operational expenses. It's important to note that these figures are subject to change, and it's always recommended to reach out to Domino's directly for the most up-to-date information and detailed requirements.
The specific requirements may vary depending on the location and other factors, but here are some general guidelines to consider:
1. Store Size: The recommended minimum store size for a Domino's Pizza franchise in India is typically around 600 to 2,000 square feet. This includes both the front-of-house area for customers and the back-of-house area for food preparation and storage. Moreover, The space needed for a Domino's outlet depends on its type:
- Dine-in Restaurant: Ranges from 800 to 2,000 square feet.
- Delivery and Carryout Store: Requires 400 to 1,000 square feet.
- Express Outlet: Occupies 200 to 400 square feet, designed for high-traffic areas.
2. Seating Capacity: While Domino's Pizza is primarily known for its delivery and takeout services, many locations also have seating areas for customers who prefer to dine in. The seating capacity can vary, but a typical range is around 20 to 30 seats.
3. Kitchen Equipment: As a Domino's Pizza franchise, you will need to have the necessary kitchen equipment to prepare and cook pizzas. This includes ovens, dough mixers, refrigeration units, and other essential equipment. The specific requirements for equipment may be provided by the franchisor.
4. Storage Space: In addition to the kitchen equipment, you will also need sufficient storage space for ingredients, packaging materials, and other supplies. This may include walk-in refrigerators, freezers, and shelving units.
5. Parking: It is important to consider the availability of parking space for customers, especially if you are planning to have a dine-in option. Having convenient parking can enhance the overall customer experience.
It is worth noting that these are general guidelines, and you should consult with Domino's Pizza or the franchisor for specific requirements and recommendations for your location. Additionally, local regulations and building codes may also impact the space requirements for your franchise.
There are certain documents and licenses that you will need to obtain if you’re planning to open a domino’s franchise in india. These requirements may vary depending on the specific location and regulations of the city or state where you plan to operate. Here are some of the common documents and licenses that you will likely need:
1. Business Registration: You will need to register your business entity with the appropriate government authorities. This may involve obtaining a Certificate of Incorporation or a Partnership Deed, depending on the legal structure of your business.
2. Trade License: A trade license is typically required to legally operate a food business in India. You will need to obtain this license from the municipal corporation or local authority in the area where your franchise will be located.
3. Food License: In order to ensure food safety and hygiene, you will need to obtain a Food License under the Food Safety and Standards Act, 2006. This license is issued by the Food Safety and Standards Authority of India (FSSAI) and demonstrates that your franchise complies with food safety regulations.
4. Fire Safety Certificate: To ensure the safety of your establishment and customers, you will need to obtain a Fire Safety Certificate. This certificate is issued by the local fire department after a thorough inspection of your premises.
5. GST Registration: Goods and Services Tax (GST) registration is mandatory for all businesses in India that have an annual turnover above a certain threshold. You will need to register for GST and obtain a unique identification number (GSTIN).
6. Trademark License: As a franchisee, you will need to obtain a license from Domino's Pizza to use their trademark and brand name. This license agreement will outline the terms and conditions of your franchise agreement.
In order to initiate the process to open a Domino's franchise, You can follow the below mentioned process:
Additionally, establishing efficient delivery services is important to cater to customers who prefer to enjoy their Domino's pizzas from the comfort of their own homes.
Training Program: Upon signing the franchise agreement, Domino's provides comprehensive training programs for franchisees and their staff. This includes operations, marketing, customer service, and product preparation to ensure adherence to brand standards.
Ongoing Support: Domino's offers continuous support in various aspects of running the franchise, such as marketing strategies, operational guidance, technology updates, and product development.
Site Selection and Construction: Work closely with Domino's representatives to finalize the location and initiate the construction or remodeling process for your store.
Equipment and Supplies: Purchase necessary equipment, inventory, and supplies as per Domino's specifications to ensure consistency in product quality.
Grand Opening: Launch your store with a grand opening event to attract customers and create buzz within the community. Implement marketing strategies provided by Domino's to drive traffic to your new outlet.
Owning a Domino's franchise in India can be a rewarding opportunity for individuals passionate about the food industry and dedicated to delivering quality service. It's crucial to follow the franchise process diligently, maintain brand standards, and leverage the support and resources provided by Domino's to ensure the success of your franchise. If you're ready for a business venture in the pizza industry, Domino's might just be the perfect franchise opportunity for you.
