A

Feasibility Report
On
“Dominos pizza Private Limited”
Submitted To:
S. K. School of Business Management,
Hemchandracharya North Gujarat University, Patan.

In the Partial Fulfilment of the Requirement of the

Award for the Degree of
Master of Business Administration

Under the Guidance of:

Dr. A. G. Modi
Prof. of
S. K. School of Business Management

(March-jun-2020)
Submitted By:
Student Name Roll no
Modi Bhoomi 19
Modi Hani 20
Saini Agnikuamr 39
Thakkar Twinkal 45

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 Profile of Entrepreneurs:
Name: Agnikumar Saini
Education: MBA (Marketing) At HNGU
Age: 21 years
Gender: MALE
Fathers Name: Ashvinbhai Saini

Name: Twinkal Thakkar

Education: MBA (Marketing) At HNGU
Age: 22 years
Gender: Fe-male
Fathers Name: Dipakbhai Thakkar

Name: Hani Modi

Education: MBA (Finance) At HNGU
Age: 22 years
Gender: Fe-male
Fathers Name: Kamalkumar Modi

Name: Bhoomi Modi

Education: MBA (Finance) At HNGU
Age: 23 years
Gender: Fe-male
Fathers Name: jayprakash Modi

All Four entrepreneurs belong to well educated business families, from whom they
gained explicit business knowledge and experience during the education period.

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 1. Nature of Business
The experience of the franchiser's management team increases the potential for success. This
experience is often conveyed through formal instruction and on-the-job training. Franchisees can
often buy lower-cost goods and supplies through the franchiser, resulting from the group
purchasing power of all the franchises.

Established franchisers offer national or regional name recognition. While this may not be true
with a new franchiser, the benefit of starting with one is the potential to grow as its business and
name recognition grow.

A franchiser also provides management assistance, including accounting procedures, personnel

and facility management. An individual with ex patience in these areas may not be familiar with
how to apply them in a new business. The franchiser helps a franchise overcome this lack of
experience. Franchisors help franchisees develop a business plan. Many elements of the plan are
standard operating procedures established by the franchisor. The most difficult part of a new
business is its start-up, since even experienced managers lack the knowledge to set up a new
business.

One of the biggest benefits to franchising is marketing. The franchiser can prepare and pay for
the development of professional advertising campaigns. Regional or national marketing done by
the franchiser benefits all franchisees. In addition, the franchiser can provide advice about how to
develop effective marketing programs for a local area through a cooperative marketing fund, to
which the franchisees contribute a percentage of their gross income.

It's possible to receive assistance in financing a new franchise through the franchiser, who often
makes arrangements with a lending institution to lend money to a franchisee. The franchisee
must still accept responsibility for the loan.

A franchiser also provides training for the franchisee. This is especially important if the concept
is complex. The best training combines classroom or one-on-one training at the franchiser's
facility with field training at the franchisee's place of business. Finally, franchising has found a
solid economic niche that caters to specialized needs. Many American consumers no longer want
a muffler installed by a service station, a hamburger from a diner, a pizza from someone who
won't deliver it within 30 minutes or their hair cut by a local barber. Specialists, it seems, "do it
better," and the franchise industry is only too willing help.

Hence we adopt Franchise at Deesa-Palanpur Highway.

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 2. Introduction of Domino’s

Domino’s Pizza is the second largest franchised pizza chain in the U.S.A. Tom and James
Monaghan bought a small Michigan Pizzeria called Dominick's, which was jointly run by
them until James traded his share for a second hand car. Tom revitalized the image by
changing the name to Domino’s Pizza. By the late seventies there were over 200 franchise
pizza businesses in the States and Domino’s Pizza was ready to go International.

In 1983 Domino’s Pizza opened its doors in Winnipeg (Canada), and in the same year
opened its one thousandth store. The locations for Domino’s Pizza grew quickly. Despite
Domino's Pizza springing up diverse locations, they were still a very traditional company.

Domino's Pizza menu had been kept very simple and streamlined; they only sold one type
of pizza crust which they named the regular pizza. The pizza menu included just two sizes
of dough; it was not until much later that competition forced them to add a medium and
extra-large sized pizza. There were no such things as side orders you could have Pizza and
you could only drink a Coke with it. In 1989, Domino’s reacted market demand first time in
twenty five years and introduced Deep Pan pizza. This move ensured the growth of
Domino's Pizza, as the same year they opened their five thousandth store.
In 1992 they were to introduce the first non-pizza item to their menu, this was obviously a
reluctant move as it was bread sticks. Domino Pizza dough was already on hand and the
making of bread sticks is not so different. For many years the company had advertised that if
the delivery of their pizzas took longer than thirty minutes then the pizza would be
delivered free. This was parodied by the Teenage Mutant Ninja Turtles movie which
specified the "pizza dude has 30

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seconds" to complete the delivery. The turtle’s pizza was late and they received a refund of
$3 for "being two minutes late, dude!" However the benefits to Domino Pizza were
enormous as millions of kids were to hear the name of Domino Pizza endorsed on celluloid.
In 1993 Domino Pizza discontinued this policy and stated that if a customer was unhappy
they could have a new pizza or are fund. By 1994 Dominos Pizza marketing policy widened
as chicken wings were introduced to the menu. At the same time the company hit the
African continent as they opened a store in Egypt. By 1996 Dominos Pizza website was
launched and the company declared global sales of nearly $3 billion. Despite their
reluctance to add a wider range menu they have as a company given the pizza industry
many innovations that have now become standard. The belt driven pizza oven was the
invention of Domino Pizza and they began using corrugated cardboard delivery boxes
which were very effective at holding the heat within the pizza during the delivery time. Ever
mindful of the fact that a cold pizza must be about the worst dining experience on earth
Domino’s pizza introduced the "Heat Wave," a portable electrical bag system that keeps the
pizza hot during delivery.

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 3. About Dominos Pizza India
Jubilant Food Works Limited (the Company) is a Jubilant Bhartia Group Company. The
Company was incorporated in 1995 and initiated operations in 1996. The Company got
listed on the Indian bourses in February 2010. Mr. Shyam S. Bhartia, Mr. Hari S. Bhartia
and Jubilant Consumer Pvt. Ltd. (formerly Jubilant Fresh Pvt. Ltd.) are the Promoters of
the Company. The Company & its subsidiary operates Domino's Pizza brand with the
exclusive rights for India, Nepal, Bangladesh and Sri Lanka. The Company is market leader
in the pizza segment with a network of 1,249 Domino’s Pizza restaurants across 276 cities
in India (as on June 30, 2019).

The Company is the market leader in the organized pizza market in the pizza home delivery
segment in India, The Company has strengthened its portfolio by entering into an
agreement with Dunkin' Donuts Franchising LLC, for developing the Dunkin' Donuts
brand and operating restaurants in India,

Over the period since 1996, Domino's Pizza India has remained focused on delivering great
tasting Pizzas and sides, superior quality, exceptional guest care and value for money
offerings. We have endeavored to establish a reputation for being a home delivery
specialist capable of delivering pizzas within 30 minutes or else FREE to a community of
loyal consumers from all our restaurants around the country.

Domino's vision is focused on "Exceptional people on a mission to be the best pizza

delivery company in the world!" We are committed to bringing fun, happiness and
convenience to lives of our consumers by delivering delicious pizzas to their doorstep and
our efforts are aimed at fulfilling this commitment towards a large and ever-growing guest
base.
Domino's constantly strives to develop products that suit the tastes of our consumers and
hence delighting them. Domino's believes strongly in the strategy of 'Think global and act
local'. Thus, time and again we have been innovating with delicious new products such as
crusts, toppings and flavors’ suitable to the taste buds of Indian Consumers. Further
providing value for money and affordable products to our consumers has been an important
part of our efforts. Our initiatives such as Fun Meal and Pizza Mania have been extremely
popular with consumers looking for an affordable and value for money meal option.

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Domino's believes that when a box of pizza is opened, family and friends come together to
share the pizza. Hence, our brand positioning: ‘Yeh Hai Rishton Ka Time'

That's why, all our efforts, whether it is a new innovative and delicious product, offering
consumers value for money deals, great service, countrywide presence or the promise to
deliver in 30 minutes or free are all directed towards making relationships stronger, warmer
and more fun by giving consumers an opportunity to get together, catch up, reunite and
spend more time together.

Consumers can order their pizzas by calling the single Happiness Hotline number
18602100000 OR order online at Pizza Online.

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 4. About logo
The company logo originally had three dots, representing the three stores in 1965. Monaghan
planned to add a new dot with the addition of every new store, but this idea quickly faded, as
Domino's experienced rapid growth. Domino's Pizza opened its first franchise location in
1967 and by 1978 the company expanded to 200 stores. In 1975, Domino's faced a lawsuit
by Amstar Corporation, the maker of Domino Sugar, alleging trademark infringement and
unfair competition. On May 2, 1980, the Fifth Circuit Court of Appeals in New Orleans
found in favor of Domino's Pizza.

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 5. Organizational Culture
Culture is about activities of a people like how they great to other. It’s a multicultural
organization. In Domino's the employees are from different Culture and different countries so
its multicultural organization. I think it's a need of the workplace because some time face
different culture people for communication. As we know New Zealand is a place where
people come from different part of the world. So for development a business in New Zealand
we need different cultural employees, who can communicate with different cultural people
and it helps to the business. Dominos also teach their employees about social ethics,
professional ethics, and individual ethics. In Domino’s employees learn lot from knowledge
and experience during communication with our higher level like if a crew person
communicates with restaurant manager he directly affected by way of communication of
restaurant manager because restaurant manager know how to communicate.

Culture followed by Domino’s is as follows:

 Multiculture
 Follows Ethics: Social, Professional, Individual
 Strong Communication
 Believe In Team Work
 Disciplinary Environment

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6. Leadership Style of Domino’s

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 7. Patrick Doyle leadership style
 360 degree feedback for domino’s leader

Domino's shareholders must like Doyle. So too do Domino's employees, who gave him such
high marks in year 2015 Detroit Free Press Top Workplaces survey that Doyle was named the
first-ever winner of the Top Workplaces Leadership Award, presented Wednesday by Joyce
Jenereaux, president and publisher of the Detroit Free Press and president of [Link].

Patrick Doyle, whose first big news-making acts as CEO in 2010 were to change Domino's
pizza recipes and then launch a daring ad campaign in which employees read scathing
customer comments aloud about the old pizza, comparing the crust to cardboard and the sauce
to ketchup.

Doyle had the foresight to bring in Kevin Vasconi, from Stanley Black & Decker, as his Chief
Information Officer to make the brand’s IT infrastructure and mobile and tech platforms work
seamlessly.

Also along the way in a tenure that began in 2010, Doyle has launched a badly needed
reformulation of Domino’s basic pizza formula, established a new brand positioning based on
transparency and brought the chain’s first fresh pan pizza to market.

Ahead of CES 2015, where Domino’s is keeping an eye on wearable tech thanks to its
partnership with Pebble, brand channel spoke with Doyle about how Domino’s mixes digital
innovation with customer experience for a winning combination.

Patrick Doyle: No. At the end of the day, we’re an extremely customer-focused brand, and
we’re only responding to what customers want. We’re a pizza company first; we have to give
customers great pizza. That’s why we changed the formula] a few years back. We’ll always
be known for great delivery too; that’s where our heritage was. And we want to have an
equally good carry-out experience.

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But what customers have shown us is that they want access to the brand through technology,
and they want it anytime, anywhere they are no matter what screen is in front of them,
whether they’re driving their Ford or in their living room or on a laptolp or mobile phone.
They want to be able to access the brand through technology. And we have pretty drastically
changed our model over the last five to seven years to accommodate that.

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 8. Change Management

 Sources of change in the Domino’s Pizza:

There are many internal and external sources which has brought change in the dominos' pizza
and its strategy. They accepted these changes and there are some external reasons which are
as follows:

Changing in market nature is the source of change in the Domino’s Pizza. As the consumers
know that their choice is matter in the market whatever they demand it will be considerable.
Australia is one of the largest countries and consumers of that country markets want healthy
food so Domino’s Pizza made healthy menu.

With the objective of maintaining the competition, business always run according to the rules
and regulation. So Domino’s Pizza also influenced by political and legal issues. Employer
should have to remember about the nutrition laws and information.

There is another source which has affected the operation of the Domino’s Pizza which is
economic growth and location.

There are some internal sources which have impact on the Dominos Pizza. New technology
system to keep pizza warm and hot for the longer time it has created change and also online
delivery order. New internet based is beneficial for the customers. Dominos made easier for
the consumer card payments, driver take wireless card machines for the payment of order.

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 9. Financial Analysis
 Salary to Human Resource:

Occupation No. Salary /Month Annual Salary

Manager 1 18000 216000
Unskilled Labour 3 15000 540000
Store keeper 1 12000 144000
cashier 2 12000 288000
cleaner 2 10000 240000
Total 9 67000 1428000

List of Raw Materials:

Flour Yeast

Mozzarella cheese Tomatoes

Garlic Olive oil/ corn oil

Fresh and dried spices Meat Chicken

Mushrooms Spinach

Olives Lettuce leaves

Broccoly Cucumber

Carrot Onions Artichokes

Sugar Salt

Herbs Parmesan cheese

Philadelphia cheese Corn

Capsicum/ Paprika Margheritta cheese

Asparagus

Sources of Raw Materials /Suppliers:

The prime raw materials that are considered essential are flour, cheese, olive oil, and other
vegetables and meat. All these raw materials are known to be accessible in Ahmadabad.

We plan to have an urrangement with those suppliers who are willing to provide the materials
as and when demanded at the cheapest possible rates so that we can benefit because of low
cost production and economies of scale.

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 Average Cost of Dominoes Pizza:

Price Least 2020 2021 2022 2023 2024

Veg. 255 280.5 308.55 339.405 342.4905

Non Veg. 325 351 379.08 409.4064 442.1589

Total Investment Analysis Project Cost (In Lakh)

Fixed Capital

Land 40.00

Machinery 30.00

Furniture and Fixtures 15.00

Motor Vehicles 03.00

Office Equipment 07.00

Building 15.00

Franchise Deposit 08.00

Total Fixed Capital: 118.00

Working Capital: 59.00

Total Investment: 177.00

Sources of Finance

As we have mentioned earlier the total investment required for setting up of business is
estimated to be Rs. 177 lakhs.

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 Profit & Loss Account for Estimating 5 Years

P&L Account 2020 2021 2022 2023 2024

Revenue
Sale (Veg.) 36,72,000 40,39,200 44,43,120 48,87,432 49,31,863
(Non Veg.) 46,80,000 50,54,400 54,58,752 58,95,452 63,67,088
Int. on Investment 2,00,000 2,20,000 2,40,000 2,60,000 2,80,000
Total 85,52,000 93,13,600 1,01,41,872 1,10,42,884 1,15,78,951

Exp.
Salary 14,28,000 14,28,000 14,28,000 14,28,000 14,28,000
Admin Exp 30,000 40,000 45,000 50,000 55,000
Advertisement Exp 50,000 50,000 45,000 40,000 40,000
Electricity 70,000 70,000 70,000 70,000 70,000
Repair & Maintenance 10,000 12,000 14,000 16,000 18,000
Depreciation (Building) 150000 135000 121500 109350 98415
(Machinery) 150000 142500 135375 128606 122176
( Furniture) 150000 135000 121500 109350 98415
Commission(10%) on 367200 403920 444312 488743.2 493186.3
RM(
( 468000 505440 545875.2 589545.2 636708.8
Total 28,73,200 29,21,860 29,70,562 30,29,595 30,59,901
Profit Before int. & Tax 56,78,800 63,91,740 71,71,310 80,13,289 85,19,050
(-) Int. (10%) 0 0 0 0 0
Profit Before Tax 56,78,800 63,91,740 71,71,310 80,13,289 85,19,050
(-)Tax (35%) 1987580 2237109 2509958.43 2804651.273 2981667.487
Profit After Tax 36,91,220 41,54,631 46,61,351 52,08,638 55,37,382

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 Balance Sheet for Estimating 5 Years

Balance sheet 2020 2021 2022 2023 2024

Assets
Land 40,00,000 40,00,000 40,00,000 40,00,000 40,00,000
Building 15,00,000 13,50,000 12,15,000 10,93,500 9,84,150
Dep(10%) 1,50,000 1,35,000 1,21,500 1,09,350 98,415
Net Building 13,50,000 12,15,000 10,93,500 9,84,150 8,85,735
Machinery 30,00,000 28,50,000 27,07,500 25,72,125 24,43,519
Dep(5%) 1,50,000 1,42,500 1,35,375 1,28,606 1,22,176
Net Machinery 28,50,000 27,07,500 25,72,125 24,43,519 23,21,343
Motor Vehicles 3,00,000 4,00,000 5,00,000 6,00,000 7,00,000
Office Equipment 7,00,000 9,00,000 11,00,000 13,00,000 15,00,000
Furniture 15,00,000 13,50,000 12,15,000 10,93,500 9,84,150
Dep. (10%) 1,50,000 1,35,000 1,21,500 1,09,350 98,415
Net Furniture 13,50,000 12,15,000 10,93,500 9,84,150 8,85,735
Franchise Deposit 8,00,000 8,00,000 8,00,000 8,00,000 8,00,000
Cash & Bank 35,18,220 26,68,731 18,81,898 16,15,723 12,33,170
Investment 20,00,000 22,00,000 24,00,000 26,00,000 28,00,000
Closing Stock(Veg.) 328000 368800 495280 268840 91188.64
(Non 520000 769600 880048 832256 605211
Veg.)

Total 1,77,16,220 1,72,44,631 1,68,16,351 1,64,28,638 1,58,22,382

Liabilities
Capital (Loan) 10% 1,50,00,000 1,40,00,000 1,30,00,000 1,20,00,000 1,10,00,000
P&L (Profit) 27,16,220 32,44,631 38,16,351 44,28,638 48,22,382

Total 1,77,16,220 1,72,44,631 1,68,16,351 1,64,28,638 1,58,22,382

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Payback Period:

Total Net Profit= Rs. 1, 98, 28,223

Total Investment in Business= Rs. 1, 77, 00,000

Payback Period = Total Investment/Average Profit

Average Profit= Total Profit/No. Of Years

=. 1, 98, 28,233 /5 = Rs. 38, 05,644

Therefore, Payback Period=1, 77, 00,000/38, 05,644 = 4.65 Years

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