Domino’s franchise has 1400 outlets in India and their outlets and profitability are increasing day by day. Domino’s offers 3 types of franchise models in India- Traditional Outlet, Non-Traditional Outlet, and Transitional Outlet.
Traditional Dominos outlets are relatively big outlets than Non-Traditional Outlets. Non-Traditional Outlets are located in special buildings like airports, Railway stations, Petrol pumps, Stadiums, etc. Traditional outlets can be open anywhere the footfall of people is high.
Transitional outlets contain less product range. They are made where the footfall of customers is less (mainly for Tier 3 Cities).
Table of Contents
Domino’s Franchise Cost
Dominos Franchise Cost 60 Lakh Rupees to 80 Lakh Rupees of an Initial Investment.
Domino’s Franchise Fee
Domino’s Franchise Fee depends upon the type of Outlet. Earlier, the franchise fee of Domino’s was 4,50,000 Rupees but now the franchise fee is 10 Lakh Rupees.
In exchange for the franchise fee, you will get the right to sell Domino’s Products in a particular area. You will be provided the Raw Material for making the material.
Domino’s Equipment and Machinery Cost
Domino’s Equipment and Machinery cost 20 Lakh Rupees which includes the Kitchen Utensils, Oven, Baker, Deep Freezers, and many more types of equipment.
Domino’s Interior, Civil Work, and Furniture Cost
Domino’s Interior, Civil Work, and Furniture cost 20 Lakh Rupees depending upon the area. The minimum area required to start a Dominos Outlet is 350 Square Feet of which 150 Square Feet will be allotted to the kitchen area.
Civil Work will cost around 5 lakh Rupees which includes building the kitchen and sitting area. Furniture will cost 5 Lakh Rupees of Investment and the rest of 10 Lakh Rupees will be the Interior Cost that includes Hoarding, Signage and Led TV, etc.
Domino’s Other Expenditure
The other Expenditure in Domino’s cost 10 Lakh Rupees as an Investment that includes training cost, transportation cost, Maintainance, Licensing, Marketing, and many more expenditures.
Domino’s Franchise Profit
Domino’s is the best Pizza outlet in India that is expanding its profitability every year. The Sales of Domino’s depends upon the type of City, Area, and Years of Working.
If you are opening an outlet in a Tier 1 city like Delhi, Mumbai or Bangalore then the Sales and Profit will be very high due to the high Footfall and preference of the customers.
In Tier 1 cities, there are chances of very high Sales from online platforms like Swiggy and Zomato.
On the Contrary, the preference of people in a Tier 3 city to choose Domino’s is low. Therefore, Profits and Sales in a Tier 3 city is low but there can be a good amount of profit.
The Area that you are choosing should be on a high street or Mall where customer footfall will be very high. This will ensure Guaranteed Sales due to the brand name of Domino’s.
If an outlet is working for more than 5 years then most of the people nearby are known about the outlet and hence they will definitely visit the outlet maybe every month.
We will analyze Domino’s Franchise Profit Margin with the help of an example. We will deduct all the expenses from the Gross Sales. We are assuming Sales of 15,00,000 Rupees i.e. 50,000 Rupees per day.
|Gross Sales||15,00,000 Rupees|
|Food Cost @40%||(6,00,000) Rupees|
|Electricity and Water Supply||(25,000) Rupees|
|Salary of Workers and their Expenses||(1,00,000) Rupees|
|Aggregator Commission (Zomato, Swiggy)||(60,000) Rupees|
|Royalty and Advertisement Fee @9.5%+GST||(1,50,000) Rupees|
|Other expenses (Software, Maintenance and Misc)||(75,000) Rupees|
|Net Profit||4,00,000 Rupees|
We can conclude that the Profit Margin of the Domino’s Franchise is 26.66% for the Sales of 15,00,000 Rupees. The outlet may have less profits in the initial days, but Indian food will eventually gain high popularity and have great demand in the market.
After good Local Marketing and Branding, the Sales will increase to 20 Lakh Rupees per month and the profit margin will be 30% on Sales.
Location plays a very crucial factor in determining the success rate of a franchise along with food quality and service.
The location should have a very high footfall. It should be in the main market of that area. A corner outlet is the most preferable option.
You can open the outlet nearby colleges, corporates, or any place where young people love to have Pizza and fast food.
How to get Domino’s Franchise?
To get the Domino’s Franchise, you have to fill out the Google form on their website. We are not the franchise givers of Domino’s only Jubilant Foodworks has the right to sell the Domino’s franchise in India.
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Also Read- Low-Cost Pizza Franchise