Ladies and gentlemen, good day and welcome to the Q1 FY 2027 earnings conference call hosted by Jubilant FoodWorks Limited. As a reminder, all participant lines will be in the listen- only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Apaar, Head of Investor Relations at Jubilant FoodWorks. Thank you, and over to you, Mr. Apaar.
Thank you so much, Sagar. Welcome to Jubilant FoodWorks quarter one FY 2027 earnings call for investors and analysts. We are joined today by senior members of the management team, including our chairman, Mr. Shyam S. Bhartia, our CEO and MD, Mr. Sameer Khetarpal, and our CFO, Ms. Suman Hegde. Please note that this earnings call is scheduled for a duration of 45 minutes, and we will commence directly with the Q&A session. Along with the Q1 financial results, we have released a letter to our shareholders in which we have shared our outlook and have already answered certain pertinent questions about the performance. Hence, the participants are requested to limit the scope of discussion to only strategic questions and the count of questions to only two. If you wish to seek any accounting clarification, kindly get in touch with the investor relations team later.
A cautionary note before we move ahead. Some of the statements made on today's call would be forward-looking in nature, and the actual results may vary from such statements. I will now hand over the call to the moderator to begin the Q&A session.
Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Kunal Vora with BNP Paribas. Please go ahead.
Yeah. Thank you. Thanks for the disclosure on Popeyes. Just wanted to understand the acceleration in LFL growth from 9.2% in 1Q FY 2026 to 45% in 1Q FY 2027. What is driving it and when does this normalize? At what level do you expect it to normalize at?
Kunal, firstly, I think, just stepping back, Popeyes definitely has become a second growth engine for JFL, and we generally believe the work that the team has done to take Popeyes, which is a relatively lesser-known brand in India, but very popular in U.S. and is the second-largest brand after Chick-fil-A. It has overtaken multiple fried chicken competitors in its market on the back of three things, which we have replicated in India. Firstly, a superior product through a better marination process, the fresh chicken, and supported by a very strong supply chain of Jubilant FoodWorks. Firstly, it is that pieces are intact. Second is we have built the brand very assiduously in terms of on flavors, launching wings, and product innovation that differentiates brand relative to the competition. And third is the execution on store opening has been very good in the last three or four quarters.
These three structural tailwinds or structural factors are giving us 40%, 45% growth rate. As you see, the ADS is still behind the number one player in the market. And we believe we should surpass that. The brand has legs to even go beyond it. That is how we are viewing it. I would want this number 45% to be there forever, if wishes were horses. We are not taking a view on this will normalize to 10% or 9%. That is not how we are thinking. Our first goal is to make sure that our average daily sales are materially higher than even where we are today.
What I was trying to understand is how did 9 become 45? What action resulted in a significant acceleration?
Same thing.
Okay. Same thing.
Kunal, same thing. Superior product, better store execution, and differentiating the marketing story and the culinary story on more flavors and things like we have six flavors of chicken wings. Very few players in the world are able to do it, and with different sauces. Similarly, we obsess about buns. The amount of time the team has spent on buns. As a result, customer experience on product satisfaction is among the highest in the world in the Popeyes. It's not a big brand in 90 countries, but still, whatever 30, 40 countries it is present in, it is among the best or top quartile among the 30, 40 countries that Popeyes is present in. That's been the simple recipe for 40% growth.
Understood. Second question, your employee cost per store does not seem to have increased in the last year. There will be wage inflation. Minimum wages have increased. Can you help us understand that? Lastly, also, if you can comment on CapEx, what's the number been for this quarter as well as what do you expect for FY 2027? That's it from me.
Wage inflation. By the way, there is wage inflation.
I know. I am just trying to understand where you are reading the numbers from because we have seen a 12% increase in personnel costs on the standalone basis and about 15.6% on the consolidated basis year-over-year. Which number are you referring to?
I am looking on a per store basis. I was looking at per store basis employee cost because your store count also has gone up by a similar number.
Yeah. No, the store count has not gone approximately, but let me give you some flavor on what we do. Yes, if I look at a per store basis, now there are headwinds. Let me come back. There are headwinds on the cost. There are headwinds on account of minimum wages. There is headwinds also on account of the new stores that we opened from an absolute point of view. Having said that, our productivity in store, and I think we have spoken about this in the previous calls as well, our productivity in terms of what we measure of orders per hour that a person can do in the store has materially improved, which kind of brings down our cost within the store while the absolute can go up. That is one of the key factors for bringing the per store personnel cost down.
But if I look at an overall headwind in terms of wage increase, wage bill increase, and in terms of what we have seen on overall stores increase that we have seen, that, of course, is down.
Also getting, I think this includes supply chain headcount also, Margi, right? That's also, we're getting leverage over there as more stores come in and also we've driven productivity. So there are combination of factors but rate has gone up for labor per hour.
Understood. Lastly, if you can comment on CapEx for the quarter and for the full year, what the expectations are.
I think we've already given the expectation. We don't give it by quarter. So for the full year, I think we have indicated last time as well, the guidance has been in the range of INR 750 crores-INR 900 crores, which has been what we have spent in the previous couple of years as well. And we continue to maintain that number for now. Of course, the profile of that capital, I want to reiterate, is now more indexed on investments behind new store expansion. Now, of course, Domino's, but now with Popeyes also becoming less, that's also coming in to have a play there. Our existing store network, as it becomes larger with the base going up, we will continue investing behind it.
We have spoken about last quarter on how dine-in is an important metric for us and hence there will be investment behind our existing stores to ensure we give the right customer experience out there. The large third bucket is our technology investments that we will continue to put behind because we do believe that's a key vector of differentiation versus the competition and where the consumer also currently plays. This is where it is. The supply chain investments are materially down from what it used to be a couple of years ago, which means that the overall CapEx as a percentage of will continue to improve given we are maintaining the absolutes to where they were over the last couple of years.
Understood. Thank you.
Does that answer your question?
Yeah. That's it.
Abhinav.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit yourselves to two questions each and rejoin the queue for any further follow-up questions. Our next question comes from the line of Vivek M with Jefferies. Please go ahead.
Hi, good evening, Sameer and team. So two questions. First is on the dine-in bit, what you have mentioned about the new leader, 400 stores, et cetera. Can you just elaborate? You have also indicated there is some early success you have seen, but one needs to be patient. Can you just talk a bit more about what exactly you are doing there? What is the level of intervention and investment that you will do and what is ultimately, when you say sustainable growth, what is it that you expect from the dine-in format?
Vivek, firstly, I think the playbook that we are building is, or even at a higher level, the mental model over here is we care about this channel, especially with 2,500 neighborhood stores with high density. So we have to continuously iterate the service. At a very high level, Domino's started giving free delivery, then aggregators moved to INR 99 minimum order value and free above that, and now to INR 49. So coming into the store, the proposition needs to be sharper for a customer to leave the home and the convenience of home and battle the traffic, et cetera, park their vehicles and come to the store and collect their order or order there is, we understand there are more headwinds than what they were two years ago.
What we are doing is we are very carefully segmenting our stores into which are in more dine-in clusters where we already have existing dine-in on high street where the dine-in share is higher relative to others, mall stores, food court stores, university campuses store, and the other stores which are becoming more and more delivery first. We recognize Domino's is a delivery first brand and it kind of like as much as pizza comes to mind when you say Domino's, delivery is also the second word that you associate with the brand. Specifically, what we've done is we've built an organization or channel team which focuses on dine-in takeaway under a very able leader, and who can think about marketing, operations, and also business segment. So that's the first thing we've done.
As we speak, we are almost built our regional organization for this channel so that we can focus on this particular piece. There are specifically three pillars for this. Number one is the basics of service, which is speed of service, product quality, accuracy, and store experience, which we want to be functional. Each store is being tracked. There is a mystery audit which is being done, and the scores we see improving. Secondly, this channel continues to be an acquirer of new customers, and therefore we need to give new customers to leave the comfort of their home and come to the store. So two specific offers. We have a Best Deals Ever Wednesday. That property is only available on Wednesdays inside the store, where there are food abundance and buy more, get more type of deals.
We are doing partnerships with other players, like payment players and aggregators to drive traffic to the stores. Third is where we are working on is a differentiated menu which is focused on solo occasions. When we looked at the end, when we did the analysis, the solo occasions, which were less than INR 250 ticket size, saw the maximum drop. Why did they see the maximum drop? Because the minimum order value across the board has come down to INR 99 and INR 49. These numbers used to be INR 350, just as a reference, that above INR 250, INR 300, the delivery was free, and below was you had to pay for delivery. Now that number is INR 99, INR 49, and therefore we have to come up with product propositions which are available all day, but can't be availed on delivery and give renowned value to customers.
That's the playbook, the three-pillar playbook that we are following. Early results, we've been able to, at least on Wednesdays, we've been able to reverse the trend and we see growth and then some other work is going on. Again, we are not saying that we have climbed the Mount Everest. We know we have started the journey. It is little farther away till we come. The first goal is to stop the bleed. Because if we are growing at 8%, 9% on delivery, can we just hold flat from an LFL perspective on dine-in takeaway? If we do that, then we know we can far exceed the guidance that we have given on our LFL.
Got it. On your LFL, second question, Sameer, you have mentioned that the quarter has started on a positive note. It has been better than what it was in the first quarter. Can you just guide us in terms of how the progress will be? Because your base of LFL starts getting better from second quarter and further dips in third and fourth quarter. Do you think for rest of the year you can get to 5%- 7% growth that you have guided in the past?
Yes, absolutely. That's the endeavor, Vivek. Even if you look at Q1, where we grew 2.5%, and the corresponding number in the previous year was 11.6%. If you total up the two, it is about 14.1%. Again, if you divided that by two, a simple average takes you beyond 7%. That's what we are attempting. We are building a business of 5%-7% as bases get corrected, and you will see for last two quarters that we've been in that ballpark range, and therefore 0.5% in Q4, 2.5% in Q1, and we believe Q2 will be better than Q1.
Got it. Thank you, and wish you all the best, sir.
Thank you.
Thank you. The next question comes from the line of Tejas Shah with Avendus Spark Institutional Equities. Please go ahead.
Hi. Thanks for the opportunity. Sameer, you had called out earlier that the whole plan on Popeyes will be to balance the three deliverables such as ADS, gross margin, and consumer experience. Looking at what we have achieved in last few quarters, would one say that you have crossed that hump and now it's all about acceleration and execution on ground in terms of scaling up the franchise?
Thank you for remembering that. Firstly, I'm glad that you remembered. Yes, these were the three goals the teams are tasked on: average daily sales, gross margin, and then distinctive consumer experience. Why gross margin is important is because that shows that you have a pricing power or not. While I see several opportunities on gross margin, because the scale is still low at 90 stores, logistics cost and conversion cost and buying cost, whatever leverage we get from Domino's, I think still there are opportunities. Having said that, what's the next Rubicon to cross? It is actually the. Like I said, the ADS needs to be much higher. I don't like anything less than INR 100,000. Glad to report that there are seven cities which are above INR 100,000 for the full quarter. We need to be much higher than that.
If the product is distinctive, it needs to command the pricing and the volume per store. Then the part around unit economics, which is we are able to see restaurant-level profitability in multiple stores, but marketing costs are high. Like I said, at about INR 100 crores of revenue, we invested in a team which will take us to INR 1,000 crores. Some of those costs will get amortized as we scale, and getting to EBITDA profitability is the next challenge in front of the team. That's what we are focused on. The journey that actually has been faster than what we had anticipated earlier.
Great. Second, just another recap question. In our analyst meet, 15 months back, we had also highlighted one commitment or one goal rather that we'll go for free cash flow maximization by using dynamic capital allocation. Any thoughts on that? Because we are kind of committed to high CapEx. We are cycling through that base level. Just wanted to know where do we see that maximization coming from, let's say next two years or three years.
No, I think I will give my high-level answer and Suman will give more specifics on it. Certainly, we are very conscious of that, Tejas, and therefore I will give a few examples. We did not invest in homes at all, right? In a large category like coffee, we have said that we will not play at all, right? Therefore let go of Dunkin'. So these are examples where we believe we have painfully taken capital allocation decisions and moved capital to businesses where the higher ROI will be there. Secondly, we believe the investments in supply chain are way past our peak. While we commissioned the Mumbai food factory in March and some bit is yet to be commissioned. But from a cash standpoint, we are not building such large assets and we are done for up to almost 5,000 stores.
Now it is about time to sweat these assets. Therefore the capital allocation will go into Domino's stores and Popeyes stores, which is all revenue-generating CapEx. I hate to use that word, not that supply chain is not, it is more revenue enabling from a framework standpoint. Suman, anything you want to add?
No, I just want to build on that. When you talk about free cash flow maximization, I think over the last two years at least, I mean, we did see a dip in free cash flow in FY 2024, 2025, and we did turn around end of FY 2025. FY 2026 came out strongly free cash flow positive. I think it was a right journey there. Also, given the commentary I just gave for the earlier question with Kunal, right? That CapEx is being within the range it will, and with the business growing at the rate we know it is growing at double digits, right? Overall as JFL, your operating cash flows will go up even if I hold my margins steady, which is not the intent. The margins will improve, so your profit will grow ahead of your top line. So you will generate free cash flow.
I think for us as a corporate in a while, yes, we should have positive free cash flow. The maximization that we are looking for internally is maximization of return on that capital, which is how is the ROC progressing, and hence if I need to invest capital in a high-growth business and the free cash flows are little lower, it still makes sense, right? Why would you keep that cash flow within your balance sheet if it is not generating as much return as you could if you deploy it? So that is the key metric for us. How much return am I generating on that capital that I put into the business? The second one is saying, have I improved my overall profit metric with my earnings per share? Is that improving consistently? So I think these are the two metrics we track.
The free cash flow is an input into these two, is the way we look at it. Yeah.
Okay. That's all from my side. Thanks.
Thank you. Our next question comes from the line of Jignanshu Gor with Bernstein. Please go ahead.
Yeah. Hi. Thank you for the opportunity, Sameer and team. I wanted to extract some more color if possible on this 2.5% growth that you're seeing, and you want to see the higher number ahead in context of the 140 basis points of price increase that we seem to have taken on an overall basis. Which means our volumes were sort of under more pressure, and these are largely digital volumes because that's 76% of business. And we've acquired customers, but our efficiency of MAU to MTC is sort of dropping, right? So am I reading the problem right, that we need to get and convert more digital customers on our app? And where do you believe the problem is, and sort of what is the solution to the problem without assuming a demand increase at a macro level?
No, I will not read too much into MAU to MTU conversion because it has Papa John's. Standalone Domino's conversions have been very high. We obviously took price increases. Therefore, to that extent, there was some drop in conversion, but that's marginal. It comes back in a quarter or so. Jigna, I will not compare or look at that. I think the fundamental question that you're asking is, can we grow faster on delivery? Delivery as a channel, in percentage term, it has come down compared to what we were growing. Profitability is also a key driver. Therefore, we'll keep on balancing between discounting, price increases, packaging charges to ensure the shape of the business remains in the range where we want to. Domino's is probably India's largest direct-to-consumer brand.
It has very high digital adoption. We have the levers to pull in terms of digital marketing and new customer acquisition and drive up the volume over there. In the last quarter, we did focus on taking price increases, improving the average order value, and therefore flowing it through. So it was a conscious choice, and we'll balance as the cost. Let's say tomorrow the war goes out and we do see LPG prices have come in. This is a structural advantage that exists with us from a pricing perspective. Now, we can use some of the money for more marketing, drive up more new customers. These things will continue to play, Jigna. So I will not read too much into MAU to MTU conversion.
Just to add to that, the delivery order volume has grown. Just to keep that clear.
Yeah.
The delivery channel has not been impacted in terms of order volumes from the price increases that have been taken. As you well see, our price increases have not been substantially as high. 1.5%-2%, I believe the brand has the capacity to absorb to take forward.
No, that's very clear and helpful to hear. I had just one question. Thank you very much.
Thank you.
Thank you.
Thank you. Your next question comes from the line of Latika Chopra with JP Morgan. Please go ahead.
Yeah. Hi, Sameer and Suman. Thank you for the opportunity. My first question was on margin outlook. You delivered fairly healthy gross margins at 75.5%, despite the headwinds that you talked about in the previous quarter. Just wanted to understand, what was the pricing growth that you saw in Q1, and do you see much pricing flexibility if there is further cost inflation, and if you could give some views there? How does that flow through on to your EBITDA margin expansion target of 200 basis points which you had shared earlier? So any update on progress towards this goal?
Yeah. Let me take the second one first, and then we can give more mathematical answers, Latika. We had said that 200 basis points, roughly half and half will come from Domino's and the emerging brands. As Popeyes have scaled up and Hong's Kitchen, we have curtailed growth and Dunkin' now. So we do believe this 100 basis point is ahead of the track. We're still not 100 basis point, but we believe we are more confident of delivering or even over-delivering on this dimension. Domino's, we were on track with the healthy LFL growth that we saw in Q3. Q4 was also on a high base. Q1 also, 2.5 is actually a good LFL on a very high base. We did face headwinds on specifically LPG.
While the teams work hard to plow back some of the pricing gains and offset the LPG wage increases and inflation in raw material, we are trying to manage through smart buying and taking calibrated price increases. We are also seeing with the new commissaries, our supply chain costs coming down, which actually internally sits in our gross margin, but for you, it sits in the EBITDA line. Having said that, the positive side we have price increases, supply chain cost efficiencies, and the leverage of LFL. On the headwind side, we have inflation in cheese, oil, because oil is mostly imported in India, LPG, and labor cost increases. So we're trying to balance these and taking calibrated price increase. Is there more headroom to take increase if the situation remains alarming or worsens? The answer is yes. We will take those.
This is a change in our stance from earlier that we were trying to do, but we'll again calibrate first is to look for internal efficiencies, make sure we continue to be the most competitive pizza that we offer to give great value to customers. If you're not able to manage the shape of the P&L, we will take calibrated price increase. There are more opportunities that we also see. Suman, anything you want to add?
No, I think, Sameer, you have answered it. Latika, is that clear? You need more clarification?
Yeah. Just to conclude, from Popeyes front, that 100 basis points, probably you are already over-delivering. Remaining 100 basis points on Domino's front, probably you will try to manage between revenue and cost, so your targets remain intact, and timelines also. Is that fair to expect that?
Yes. As of now, that is a fair assumption to make. I think the big one is to see how the structural parts of costs play out, which is what we are calling out, right? The internal efficiency on withdraws. As we mentioned in the last quarter, LPG was 120 basis points impact straight in, right? Of course, we have mitigated a lot of it through pricing, efficiencies. We have reduced waste across our stores. So we have done a lot of things that we have optimized on. Of course, we had expected that maybe by second half of this year, some of the West Asia crisis should kind of taper off, and we should see the margin. But we are not seeing that happening, right?
Yes, as per our guidance and whatever internal charts we had made or structural changes we were planning to make, which would get us to that target, we are on course of it, and we feel we are ahead in some areas on those. We also are expecting that some of the structural hits that we are seeing from the external environment to leave. So we want to hold on to the guidance for now.
There's more unforeseen, Latika. I think from an input standpoint, the teams are actually executing faster than what we expected.
Sure. No, very clear. The second bit was, Sameer, just wanted to hear from you, how are you viewing the overall demand environment? The quarter had seen many ups and downs in general. There is a broader inflation which is inching up in the economy, but you've written in your comments that the underlying demand environment was strong. I just wanted to understand this a little better, how you're viewing the consumer sentiment and what does that imply for your business, just beyond the base effects? Yeah.
Yeah. Latika, I think there was a time where-- Firstly, we only sell Domino's Pizza and Popeyes. From that perspective, hard to paint a full view of the demand environment. But there is enough and more demand. I always said that there is more growth in delivery, actually. But the question is, can you deliver it profitably? Right? That is always a challenge. Customers are eating out, right? Customers are wanting more protein. When you look at the sales of cars, GST, everything is actually indicating there is a positive demand environment. Wherever we have executed well, actually, we have grown much faster than the market. I don't see demand as an issue. In fact, indicators are it is only helping us.
Understood. Thank you so much.
Thank you, Latika.
Thank you. The next question comes from the line of Nihal Mahesh Jham with HSBC. Please go ahead.
Yes, hi, team. Good evening. Two questions. One was just to understand this impact, but I think last quarter you had called out that the ballpark impact of cost inflation was 120 basis points, and you have taken sort of a 1% price hike. So that is what explains the Q o Q 20 basis points contraction margin, right? Just as a crude calculation, that is how things have played out.
Let Suman explain.
Nihal. We had explained in the last quarter that we see almost a 200 basis points of headwind on account of costs, which was about 120, like you rightly said, on account of LPG. We had also called out inflation that we were seeing on labor on two counts, on account of the new labor code notifications, which would see the impact in this financial year, and also the minimum wage increases which have happened across. Since April this year, almost 14 - 15 states in India have taken minimum wage hikes across the board. That was another thing.
We had also indicated the inflation we were seeing on account of the petrol and diesel costs going up, which impacts both in terms of logistics costs for the company and underlying it impacts commodities which we buy because it is an input cost for the vendors that we buy from. So 200 basis points is what we had indicated. We had at that point in time said we had already factored in and had already taken pricing to the extent of about 100 odd basis points, which was in, 100, 110 basis points was already in. Since then, we were looking at about a 70 - 80 basis points headwind. Having said that, over the quarter, we have taken certain further price increases. We have worked further on efficiencies, wastages, and other elements, which has helped us restrict that headwind to 20 basis points. That's the broad math.
Got that. So versus, say, when we had this conversation in Q4, it's not that significantly things have intensified from a cost point, or is it that cheese is something incrementally you mentioned that has gotten worse?
Yes, absolutely. I think the labor and this remains the same. The commodities are seeing some amount of flux still. I think cheese is one because dairy prices are up. Also in terms of, I think Suman mentioned oil is up, and we're also seeing some things in chicken right now, but we will see how that pans out. I think commodities are still in a flux. There might be more inflation coming our way, but we'll have to wait and watch on that one.
Got that. The second question was. The second question was on the minimum order value dropped to INR 99, which you mentioned about last time down. Just wanted to understand how has that sort of been incrementally impacting or helping our business. Because I remember when we dropped the delivery charge, there was a strong spurt in, obviously, volume, but there was obviously an increase in cost that came along. Incrementally, with this MOV dropping to INR 99, are we from an overall business perspective, seeing the profitability boost come in? Or right now maybe it's more of an investment to get new customers? Just wanted to get a sense on that.
Very good question. When we did free delivery, we were leading the market, right? Because the market MOVs were at whatever INR 200, INR 250. We were at INR 149, and we had given very strong reasons for customers to move to our channel. That's how this game theory actually plays out. The aggregators moved to INR 99, and therefore we had to follow and move to INR 99. Therefore, the lagging action we took, right? We resisted because we know it hurts the economics. So now we have a level playing field. Our app, which is our Domino's app, continues to grow, right? Obviously, we want more growth, but it is the predominant channel for growth. Customers who want to order Domino's or want repeat orders, they have all the reason to come to Domino's.
They're not disadvantaged from shopping on any other channel. So that piece we have corrected. So this was a correction, but it comes at a lower average order value and hence, my cost per order, which even if it is flat year-on-year, I'm investing more per order at a lower value of the order to deliver to that customer. Therefore, from that standpoint, it is a headwind that is there in the business from an EBITDA standpoint. From a volume, the volume needs to grow materially higher than where we are for that to flow into EBITDA, right? Because it's a very variable cost that we have added to a lower order value. So, I don't expect this to drive up revenue, but the question is, it's a great place for customers to come back and order their favorite pizza.
That channel continues to be very strong, and we should drive more growth in that channel.
Understood, Sameer. Thank you so much.
Best wishes.
Thank you. Your next question comes from the line of Amit Sachdeva with UBS. Please go ahead.
Yeah. Hi, good evening. Thank you so much for taking my question. Sameer, my first question is on the exceptional rebound in growth in, for example, Popeyes, which is truly commendable, and congratulations for that. My question is that, is there a category-level differences now emerging, say, in chicken kind of eating versus, say, Domino's Pizza? What is the dine-in kind of percentage in Popeyes? If, for example, that number is high and delivery is low, is the customer cohort very different or is a different category evolution is at play, and how do we understand that dynamic, and does that make you more confident on Popeyes revival and SSG than, say, Domino's? Which is already delivery is doing what it is doing, but the dine-in which is suffering there. How do we contrast the two formats from a consumer cohort and this dynamic perspective?
Yeah, no, I think it's a good question, Amit, and thank you for acknowledging progress in Popeyes. The two brands are at a very different stage, right? Domino's is a large QSR brand in India, right? Very penetrated. Having said that, the household penetration, the frequency, right? What are we saying that there are six million, seven million Indians who are eating pizza every month, right? So, that's a very low number. Even in those six million, seven million out of 1,000 deals they will eat in a year, they will eat it three in those 1,000 occasions. The headroom to grow is massive. We are still very early. What Indians eat is actually Indian food, right?
Whether it's burger or a pizza or a fried chicken, the penetration in the 1,000 occasions or events in a year where one consumes food is very low. The job for Domino's is to grow the category, make it more relevant, right? Move beyond three. That's how I see Domino's in fried chicken. We are very small. We are minuscule compared to the large incumbent sitting over here. Therefore, the growth looks very good from that perspective. Our goal is very simple, to build a INR 1,000 crore profitable brand. That's what we want to do. From dine-in takeaway perspective, we're obviously present more in malls. It's a brand that needs to be established. Marketing costs are lower in a mall because you get natural footfalls. But yeah, the rentals are higher. There will be a stage where we will expand through more high streets.
That time is not very far away where the brand salience and considerations have improved from where we are. At the moment, we are more focused on driving awareness and trials to the brand.
That is the number one job to be done from a revenue growth perspective. Then of course, the unit economics to making sure the EBITDA flow through is rock solid.
Got it, Sameer. Is there any delivery percentage we have on Popeyes?
No. We do not even have a delivery percentage for Domino's. We want customers to order from any channel that they wish is more favorable to them, whether it is an aggregator, our own app, or dine-in takeaway. We want to service customers on all channels. At the moment, the dine-in salience is very high because of the locations we have chosen.
Okay.
Which means that we have an untapped opportunity that we have not focused on, and we will focus on later from a delivery standpoint.
Got it. No, that is very helpful. Just very quickly, if I may ask just a small clarification.
Sorry to interrupt. We request you to-
Yes, sir. Okay. No problem. Yeah, sure.
Thank you so much, sir.
Yeah.
Ladies and gentlemen, we will take the last question coming from the line of Aditya Soman with CLSA. Please go ahead.
Hi. Good evening, and thanks for the opportunity. The question was just on your average order value across both Domino's and Popeyes in India. Could you share the number? If you cannot share the absolute number, could you just share a relative relationship between those two? I just want to understand if there is a vast difference, particularly given that, as you mentioned, Popeyes is more dine-in compared to Domino's, which is predominantly delivery.
We do not share the average order value. We have refrained from doing that. But typically, chicken average order values are higher than pizza. That is all I want to say. Domino's, in their category or in that place, is the highest. That is all I want to say. Popeyes has some room to grow to be the highest.
Very clear. What you are saying is chicken should be higher than Domino's, and Popeyes should be potentially at least at chicken level, maybe even-</seg <seg id="3">Correct. That is correct.
Correct. That is correct.
All right, perfect. That should be good. Thanks.
Thank you so much.
Thank you.
Thank you. Ladies and gentlemen, I now hand the conference call over to the management for closing remarks.
Thank you, everyone, for joining the call and for listening patiently. For any further questions, you may reach out to the investor relations team. You will find the recording and the transcript of this call on the investor relations page of our website very soon. Thank you, and have a great evening. You may now disconnect.
Thank you.
Thank you all the members of the management. On behalf of Jubilant FoodWorks Limited, that concludes this conference. Thank you everyone for joining us and you may now disconnect your lines. Thank you.