Shreya_Anaokar Shreya Anaokar 13th December 2022

CEO of Jubiliant Foodworks resigns

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On March 14, 2022, Jubilant Foodworks announced the resignation of CEO Pratik Pota. He changed the picture of Jubilant's business in the past five years.

Pratik's key initiatives which changed the growth trajectory for Dominos in India were: 

a) Shifting from occasional deep discounting to Everyday value, 

b)To improve product quality, 

c) To improve the digital experience

d) Shifting to a more largely variable cost structure. 

These boosted the same-store sales growth (SSSG) and also helped the company expand EBITDA margins.

Jubilant Foodworks was working on some key strategic initiatives driven by Pratik to expand its business from a single brand to a multi-brand company and from an Indian business to a multi-national business. These initiatives have included the building of new brands like 'Popeye', 'Hongs Kitchen’ and 'Ekdum Biryani'.

Jubilant has also taken a large stake in the Dominos franchisee for Turkey and Russia, and a minority stake in Barbeque Nation. It was also looking to scale up in food tech. Most of these initiatives are in nascent stages and need strategic thinking and proper execution. 

The Quick Service Restaurant (QSR) industry is likely to face a tough macro environment in the near term. An increase in consumer inflation will adversely impact middle-income discretionary consumption. In India, QSR is largely driven by middle-income discretionary consumption.

The other challenge for Jubilant is the increase in competition from other brands such as KFC, Pizza Hut, and Burger King, as they are significantly growing their network expansion. The QSR industry may also face cost pressures on raw material costs and fuel expenses.

Jubilant will likely appoint an external candidate as the new CEO, one with a strong track record in a strong consumer company. Business continuity in Dominos is not a concern as the business is well established with clear management responsibilities across various levels of seniority.

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