India’s love for pizza is undeniable, making it one of the countries with the highest concentration of pizza outlets. Pizza restaurants have won the hearts and palates of Indian consumers, spreading across urban areas and remote locations. This trend has spurred numerous entrepreneurs to open pizza places, even in unconventional spots like underserved neighborhoods or along highways.

About Domino’s

Domino’s Pizza is a global pizza chain headquartered in Ann Arbor, Michigan. The company is led by CEO Russell Weiner and operates as the master franchisor of the business founded in 1960. Domino’s main office is located at the Domino’s Farms Office Park in Ann Arbor Township, Michigan, though its official domicile is in Delaware. As of 2018, Domino’s boasted around 15,000 locations worldwide, with 5,649 in the US, 1,500 in India, and 1,249 in the UK. The brand has a presence in over 5,700 cities across more than 83 countries.

Why Choose Domino’s for Your Franchise?

Pizza is a favorite for all kinds of gatherings—family get-togethers, parties, or even just a casual day. If your franchise also offers delivery services, you could potentially earn profits of 2-3 lakhs INR monthly. In 2018, Domino’s was recognized as the leading pizza delivery service. However, the cost of opening a Domino’s franchise has since increased, with non-traditional locations now costing around 30 lakhs INR and traditional outlets costing 50 lakhs INR.

Cost Analysis of Domino’s Franchises: Traditional vs. Non-Traditional Locations

The initial investment required for a Domino’s franchise varies depending on the type of location. Non-traditional stores typically need an investment of about 30 lakhs INR, while traditional locations start at 50 lakhs INR. It’s important to note that high rent costs could push expenses up to a crore INR.

Franchise Fee and Additional Costs

In addition to the initial investment, there are other expenses to consider. The first franchisee fee in India is approximately 4.5 lakhs INR, with subsequent franchisees paying 2.25 lakhs INR each. Infrastructure costs, which include equipment and restaurant setup, range between 30 and 50 lakhs INR.

Factors Influencing Cost Variations

Several factors contribute to the variation in franchise costs. Location is a major factor, with prime spots requiring higher investments. The size of the outlet—ranging from 200 to 1000 square feet—also affects the total cost. Other considerations include starting inventory, interior design, and equipment quality.

Space Requirements for a Domino’s Store

The space needed for a Domino’s store depends on the type and layout:

1. Dine-in Restaurant: Requires a minimum of 800 square feet and can go up to 2,000 square feet, depending on location and expected foot traffic.
2. Delivery and Carryout Store: Needs between 400 and 1,000 square feet based on order volume and storage requirements.
3. Express Outlets: These smaller outlets focus on quick service and typically need between 200 and 400 square feet.

Note that these are estimated figures and actual costs may vary based on specific conditions, regional regulations, and franchise policies.

Application Process and Documentation

Becoming a Domino’s franchisee involves a detailed application process:

1. Submit Your Application: Complete the franchise application provided by Domino’s, ensuring all required information is accurately filled out and submitted with applicable fees.
2. Due Diligence and Approval: Domino’s will review your application and conduct background checks to assess your suitability as a franchisee. If approved, you will receive a franchise agreement outlining the terms and conditions.
3. Procurement and Setup: Follow Domino’s guidelines to set up your store.

Conclusion

The pizza industry is rapidly evolving, with new flavors and trends emerging to meet changing consumer tastes. Opening a Domino’s franchise can be a highly profitable venture due to the strong brand recognition and market demand. If you’re considering a franchise in India, Domino’s Pizza offers a valuable opportunity for substantial earnings. However, keep in mind that actual costs may vary based on factors like outlet size, location, equipment quality, and additional requirements. Prospective franchisees should consult with Domino’s Pizza officials for the most accurate and current information on franchise expenses.