Domino & Dunkin Donuts Operator Jubilant Foodworks Set up Subsidiary in Netherlands

Dunkin Donuts and Domino’s Pizza chains operator Jubilant Foodworks has initiated a wholly owned subsidiary in the Netherlands to cash on the business opportunities in the food service industry in the European country.

In a regulatory statement, the company states, "Jubilant Foodworks Ltd has incorporated a wholly owned subsidiary company Jubilant Foodworks Netherlands B.V. on February 15, 2021. (It has been) incorporated as a wholly owned subsidiary of the company for exploring business opportunities."

However, the company did not share much information about the new venture. As of December 31, 2020, Jubilant Foodworks operated 1,314 Domino's Pizza restaurants, 27 Dunkin' Donuts restaurants.

Furthermore, it also owns and operates Chinese cuisine restaurant brand, ''Hong's Kitchen'', which serves 2 cities with 7 restaurants in India and 3 Ekdum! Biryani outlets. In December 2020, the company also purchased 10.76 percent equity stake in Barbeque-Nation Hospitality for Rs.92 crore.

Earlier this month, Jubilant FoodWorks said it is awaiting relaxations in dine-in restrictions imposed by the government for the restaurant industry similar to that for multiplexes to ramp up growth.

Jubilant FoodWorks reported a 21.71 percent increase in consolidated profit at Rs.123.91 crore in the third quarter ended December 2020. Presently, the dine-in capacity at restaurants is constrained at 50 percent to prevent the spread of COVID-19.

Pratik Pota, Chief Executive Officer and Wholetime Director, Jubilant Foodworks states, "With all COVID SOPs being followed diligently, we will see dine-in demand coming back very strongly. Recovery in dine-in business remains slow because of restrictions on seating capacity in restaurants. On the dine-in channel specifically, the constraint is more on supply than demand. That (restrictions) is what has held back the recovery significantly."

Earlier this month, the government allowed cinema halls across the country to operate at full capacity from February 1 with adherence to COVID-19 safety protocols.

Pratik said the company opened 50 new Domino's stores in the third quarter this year, the highest-ever in a quarter.

He further adds, "We turned the corner decidedly in Q3 with Domino's returning to growth, driven by strong momentum in delivery and takeaway channels."