India, like most progressing countries, has become a hub for pizza delivery chains like Pizza Hut, Smokin’ Joe’s, Laziz Pizza, Oven Story, Papa John’s and several more. However, Domino’s Pizza is in a league of its own when it comes to a consistent and loyal customer base. Domino’s Pizza India Private Limited was started by Jubilant Foodworks in 1995, and the first Domino’s Pizza shop in India was opened in 1996. Jubilant Foodworks opened the 700th Domino’s Pizza outlet in the first quarter of 2014, and over the next 24 months, they opened 300 more, making India only the second country after the United States to hit the 1000 stores mark for Domino’s Pizza. Jubilant Foodworks has over 1400 Domino’s Pizza stores in India after being in business for more than 25 years.
In recent years, Dominos online ordering has become increasingly popular among customers, with the company investing heavily in its online presence. The Dominos online ordering system is user-friendly and efficient, allowing customers to easily customize their orders and track their deliveries. With the rise of online food ordering in India, Dominos online platform has become a go-to for many customers who prefer the convenience of ordering from the comfort of their homes or offices. Domino’s online ordering has also helped the company to expand its reach in India, with more and more customers discovering and ordering from their local Domino’s outlets online. Overall, Dominos online ordering has played a key role in the company’s success in India and is likely to continue to do so in the years to come.
Amidst the digitalisation of the fast-food market, Domino’s India launched its android app in 2012, which has had 57 million downloads so far. Even though dine-in options were plentiful when Domino’s kicked off in India, the company was already driving its success through successful marketing campaigns. With buy-one-get-one-free offers, and loads of other deals & discounts, it started striding past its competitors even faster.
To put this into context, Domino’s India was lagging behind McDonald’s India in 2012, but in just four years, Domino’s has doubled its outlets and now has a 16 per cent market share in the Rs 100 billion Indian chained foodservice industry. Pizza Hut India, its nearest competitor in the pizza sector, has a measly 4.4 per cent market share, demonstrating the significant gap between the two companies. In the fiscal year 2017, the annual revenue of Domino’s India was nearly Rs. 193.5 million against Rs 3.09 billion of Zomato. With over 1.7 million downloads, the Domino’s app accounted for almost 68% of Jubilant’s sales in December 2019, which was just a quarter of Zomato and Swiggy combined. Jubilant has been able to reduce its dependency on third-party food delivery apps for Domino’s, thanks to attractive app discounts and an accessible UI.
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Why does Domino’s India keep Zomato and Swiggy at bay and how does it benefit the pizza chain?
Domino’s may be a master at delivering pizzas to customers’ doorsteps, but it is only a means to an end. Its true purpose is to sell more pizzas, which enables a high profit margin. Domino’s often maintains its delivery prices low in order to sell more pizzas. If a company as data-driven and experienced in delivery as Domino’s can’t profit from this, we have to ask if anyone else can.
At present, delivery companies and their most ardent supporters appear to be betting on the notion that customers will be prepared to pay more for faster delivery. Consumers, on the other hand, are already paying exorbitant costs for these things to be delivered, in the form of fees to delivery companies, gratuities to their staff, and charges from restaurants that pay aggregators exorbitant fees. The price difference is significant.
Since Domino’s is already focused on building a loyal customer base and has high volume deliveries, it refused to hand over the delivery of its pizzas to Swiggy and Zomato. That’s how the company tapped into the exceptional benefits that McDonald’s refused by clicking on the third-party delivery aggregators button.
Zero commission fees
Zomato and Swiggy charge around 15-28% commission from the restaurants for each order being placed from their platform. There are many other commissions based on actors such as the order size, restaurant type, average order value, predicted order volume, and delivery expenses.
This means, if your Domino’s Pepperoni Pizza is worth Rs. 500 via Zomato, you will have to pay around Rs. 550. With nearly 2 lakh Pizza deliveries every day, Domino’s India would have been paying millions to these food delivery aggregators. However, the company saved on that by keeping delivery lines in its grasp.
No revenue leakage
Though technology is there to help, Domino’s India eliminates unwanted account reconciliation issues by not partnering with Zomato and Swiggy. The whole process is really time-consuming, and the company keeps the big dogs of the delivery industry, Zomato vs Swiggy, at bay with this move.
None of this is to say that third-party delivery companies will go away—they won’t. As a rule, if customers demand service, the market figures out how to provide it. But something about the Zomato vs Swiggy third-party delivery equation will have to change. Domino’s India simply chose to deliver itself because that’s more profitable and can be fueled by delivery demand.
However, Domino’s recently made a deal with the food tech sharks Zomato and Swiggy. Since the company has been using big data to derive insights into customer ordering habits and other information, they will now use both these food delivery aggregators’ databases to add to their treasure trove of information. This way, the company can penetrate the customer base of Zomato vs Swiggy, as well as serve its loyal customer base that still chose to order from the Domino’s India app or over the phone.
The Zomato vs Swiggy competition is fierce, and it’s no secret that both companies have been battling it out for market share in India’s food delivery industry. While both companies have their own strengths, the addition of Domino’s to their platforms will undoubtedly give them an edge over their competitors. Domino’s has a massive customer base and is known for its quick delivery times, making it a valuable addition to the Zomato vs Swiggy platforms.
At the same time, Domino’s India can also benefit from the partnership with Zomato and Swiggy by tapping into their extensive delivery network and reaching new customers who may not have previously ordered from Domino’s. With this deal, Domino’s India can leverage the strengths of Zomato and Swiggy while still maintaining control over its own delivery network.
In conclusion, the Zomato vs Swiggy competition in India’s food delivery industry is intense, and the addition of Domino’s to their platforms is sure to shake things up. With the partnership, Domino’s India can access new customer bases while still retaining control over its delivery operations, ultimately benefiting both the company and its customers.
2 lessons from Domino’s India that you can’t ignore as an emerging business
Domino India has set an example for businesses across industries by focusing on core business foundations and embracing new concepts to expand their business. Startups can learn a lot from their unexpected path to success. Here are three essential lessons that businesses can learn from Domino’s India:
Build a self-aware and inspired organisation
Domino India focus on their brand and customer value has paid off handsomely. Even with the entry of Zomato and Swiggy into the food delivery space, Domino’s has maintained its strong customer base. The company understands its customer base and knows what they want. This is why they have been successful in gaining repeat business from their loyal customers, who make up 20% of their customer base but contribute to 80% of their revenue. By staying true to their brand, Domino’s India has been able to maintain its position as a leading player in the food delivery market.
Use technology to do what you can’t do single-handedly
The use of technology is what literally transformed Domino India and gave it a competitive edge in the Zomato vs Swiggy market. The American restaurant company has been spending extensively on technology in India, and online sales now account for roughly 30% of its business, or Rs. 250 crore, up from 16% last year. In addition, the company’s digital marketing spending has climbed dramatically, from 5% in 2015 to 25% in 2021.
Domino’s India has been on a long and winding road to becoming the hero it is today in the Zomato vs Swiggy competition. Their recent turnaround and innovations have served as excellent examples of how businesses may overcome challenges and apply forward-thinking to their core value.
As Domino India continues to innovate and invest in technology, it’s clear that the company recognizes the importance of staying ahead in the Zomato vs Swiggy market. By embracing online ordering and digital marketing, Domino India has been able to capture a significant portion of the online food delivery market in India.
While the Zomato vs Swiggy competition is fierce, Domino India investment in technology has allowed it to remain a major player in the market. By leveraging the power of data analytics and digital marketing, Domino India has been able to target customers more effectively and improve its overall customer experience.
Moreover, Domino India’s partnership with Zomato and Swiggy has allowed it to expand its reach and access new customer bases, ultimately driving growth and profitability. With the Zomato vs Swiggy competition heating up, it’s clear that technology will continue to play a crucial role in shaping the future of the food delivery industry in India.
In conclusion, Domino India’s focus on technology has been a key factor in its success in the Zomato vs Swiggy market. By investing in online ordering and digital marketing, the company has been able to capture a significant portion of the online food delivery market in India. As the Zomato vs Swiggy competition continues to intensify, it’s clear that technology will be the key to staying ahead of the curve and driving growth and profitability in the industry.
