Jubilant FoodWorks' emerging market playbook and platformization
Jubilant FoodWorks Ltd underlying objective is to build a portfolio of brands in promising, high-growth and underpenetrated markets.
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Jubilant FoodWorks Ltd. increased its stake in DP Eurasia and Jubilant FoodWorks Bangladesh to close to 100 percent, to further strengthen the platformization at JFL. DP Eurasia is the sixth largest Domino’s franchisee having exclusive rights to operate and open Domino’s stores in Turkey, Azerbaijan and Georgia. It also has its own cafe brand COFFY in Turkey, which is on track to be the fifth-largest cafe brand in the country by the end of 2024.
The System Sales for DP Eurasia’s continuing operations including all brands and geographies for CY 2023 was Rs 2,897 crore. The overall cost of acquisition for 94.28 percent shareholding in DPEU was Rs 1,199 crore, as per the company. On May 10, 2022, Jubilant FoodWorks completed the acquisition of the remaining stake of 49 percent in Jubilant FoodWorks Bangladesh Limited for approximately Rs 34 crore, fully funded through its cash reserves. In addition to Domino’s, it also has rights for Popeyes in Bangladesh.
The company's underlying objective is to build a portfolio of brands in promising, high-growth and underpenetrated markets. The company said it has been quietly building a unique platform which has three systems that act as a virtuous flywheel. "These are: Multi-brand: The capabilities being built are all brand-agnostic. Multi-country: We now have the requisite ability to export this platform to replicate the India playbook into other emerging markets while being cognizant of the fact that these countries will also help us better our performance in India. Food-tech: The third system being tech and ops play which essentially helps us win in the phygital world."
In the medium term, JLF intends to operate 3,000 Domino’s stores in India, 1,250 Domino’s stores in Turkey and 200 Domino’s stores in Bangladesh. In other brands, Popeyes will reach 250 stores in the medium term and will be the fastest to reach 1,000 crore in revenue and COFFY will be a 150 store network by end 2024, the company stated, in a post-acquisition conference call.
When asked about synergies with the India operations, MD and CEO of Jubilant FoodWorks, Sameer Khetarpa said, "This is about the emerging market playbook. The sourcing synergies are there on multiple fronts. We are also evaluating whether we can take COFFY to more countries. We're also evaluating what we can provide them? Can we export a few materials from India? I think all of this is, as we speak, including technology synergies are under works. We have nearly 150-member technology team. So multiple, multiple cases at work."
