JUBILANT FOODWORKS LIMITED

Jubilant FoodWorks Limited (JFL), part of the Jubilant Bhartia Group, is India’s leading food service company. The Company operates two international brands, Domino’s Pizza in India, Sri Lanka and Bangladesh, and Dunkin’ Donuts in India. It also runs Hong’s Kitchen, a home-grown brand, specializing in Chinese cuisine.

The trends in the food service industry are expected to veer towards online food ordering, increased share of delivery and takeaway mix, changed customer perceptions about product consumption and services, higher emphasis on hygiene and safety among businesses and customers alike. However, dine-in services are not going anywhere as people prefer going out with family and friends to celebrate and have a good time.

Future key demand drivers for the business -
  • India is primarily a consumption-driven economy. Private consumption expenditure, or the money that people spend on buying goods and services, has formed nearly three-fifths of the Indian economy over the years.
  • Indian society is evolving with a rise in the working population, nuclear/individual households and more outdoor activities such as leisure trips and outings with friends, families and colleagues. These factors are driving the frequency of eating out. 
  • There is an increased brand consciousness and people want to experiment with new cuisines, which is contributing to the country’s expanding food service sector and the dominance of full-service restaurants in India.
  • India has the largest population under the age of 25 in the world & working population is increasing
  • Better infrastructure now connects semi-urban and rural India, with new urban clusters growing significantly. This trend has led to an increased purchasing power among consumers in Tier-II and Tier-III cities, driving consumption
  • Urbanization has triggered a transformation in the consumption pattern, including food habits. These consumers seek convenience, explore culinary experiences and prefer eating out
  • The increasing penetration of new retail formats is creating awareness about different food options and brands, even for staples.
  • Digital inclusion is likely to further propel India’s consumption growth trajectory while improving awareness about health, lifestyle and brands, among others
  • Booming e-commerce sector and budding food aggregator industry, will offer new and exciting opportunities to the organised food service sector and Quick Service Restaurant (QSR) market.
  • As society progresses, restaurants have to follow additional hygiene and safety measures
  • Food aggregators apps like Swiggy, Zomato being used by students and working class extensively, who don’t have enough time to prepare home-cooked meals and hygiene factor will preferred
  • Smaller formats with lesser expenses, value-added dining and home delivery only kitchens will be the new format of dining out. These formats are economically viable due to low pay-outs on real estate, staff and utilities

Availability of quality manpower, high attrition rate and administration costs, inadequate supply chain, infrastructure, over-licensing, etc., are some of the key challenges faced by various players in the food service industry

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