Transcript of "training and development in Domonoz Pizza"
GROWTH OF FAST FOOD CHAINS IN INDIAKFC, Pizza Hut and Domino’s are just three examples of the many fast food chains operatingin India. In the past few years, the food sector has taken a huge leap as far as the growth ofthe food sector is concerned and especially in the fast food segment. Every corner of thestreet today has stalls or shops, small or big, operating and growing.As far as the huge food chains are concerned, they basically operate in malls in big cities ormetropolitan cities whereas in smaller cities like Lucknow, Jaipur, etc. they not only operatein malls but they have actually opened up as dine in restaurants. “It wouldn’t make sense ifwe positioned ourselves merely as a convenience, delivery brand,” explains Ajay Kaul, MD,Domino’s India. Taking a cue from McDonald’s runaway success of Rs 20 burgers and Rs 7ice-cream cones, Pizza Hut too introduced a heavily Indian zed menu with prices starting aslow as Rs 75.Home delivery is another system which has started spreading branches in India with thefacility being made available at the speed of order delivery in half an hour. Nearly 65% ofDomino’s revenues come from home deliveries and the segments dominance is expected tocontinue. “As our urban life continues to get busier, home deliveries will become morepopular. But in smaller markets dine-in will drive growth,” adds Ajay Kaul. All the majorMNC fast food chains such as McDonald’s, Yum! (which owns the KFC and Pizza Hutbrands), and Domino’s are fast changing their stripes and business models in India.Such chains are targeting not only the non-vegetarians but also the vegetarians; earlier therewas nothing to allure them at places like KFC. But things changed accordingly.
“We found that the vegetarians in such groups were always finicky and as a result had theveto power to decide where they should eat. We want KFC to appeal to everybody.Vegetarians and non-vegetarians,” says Arvind Mediratta, chief marketing officer, YumBrands India. Although KFC still gets just about 15% of its revenues selling vegetarian items,it has significantly increased the number of veg offerings on its menu.Thus, the tremendous growth of such sectors do make one wonder whether there will be apoint when pizzas and burgers take over the rest of the Indian cuisines (including quicksnacks) or is it just that we are too busy to ape our western counterparts and satisfy ourselveswith the feeling that even we have an international taste that makes us at par with the rest ofthe crowd. There is actually nothing wrong with having “International taste” but as wisepeople always say “One should never forget one’s roots and should always go for a realitycheck time and again”.Above we had taken into considered the fast food industry growth rate in IndiaLet us further take a look at the career opportunities in this industry and how in one of thecompany training and development of crew members are conducted.
INTRODUCTIONTom Monaghan and his Brother James by “DomiNicks”, a pizza home delivery store locatedin Ypsilanti, Michigan, in the north of the United States.Tom Monaghan renames his company “Domino’s Pizza, Inc.”.
The 200th Domino’s Pizza store opens.Domino’s Pizza sets out to conquer the world.Dominos opens its 5,000th store.Dominos Pizza establishes its presence on the Belgian market.Dominos launches its Web site (www.dominos.com).Dominos Pizza opens its 1,500th store outside the United States, opening seven stores in oneday on five continents. The company also adopts a new brand image, supported by a
campaign - "Image 2000" - to introduce its new logo and store concept, designed to be bothmore human and contemporary.The company opens its 6,000th store, in San Francisco, California. At the end of 1998,holding company Dominos Pizza International intervenes directly to relaunch the brand inFrance, so as to make the best possible use of resources and, at the same time, enable itsstores to take full advantage of the company’s expertise. Tom Monaghan, founder ofDominos Pizza, announces that he is to retire, selling his 93% stake in the company to BainCapital, Inc.Dominos Pizza International now has 1,986 stores located outside the USA, 33 of them inFrance.With 6,598 out lets spread throughout the world and sales in 1999 of $3.4 billion, DominosPizza ranks fifth among the major American fast food concerns active internationally, makingit the worlds largest pizza home delivery company.
Control of Domino’s Pizza Belgium is transferred to master franchisor Domino’s PizzaEntreprises, bringing together the companys interests in France, Belgium, the Netherlands,Australia and New Zealand. Dominos Pizza buys the Alvolo chain, converting seven of thecompany’s outlets to the Dominos format and brand.Domino’s Pizza buys the Pizza Company chain.Domino’s Pizza celebrates its 50th anniversaire!
BACKGROUNDJubilant Foodworks was founded in 1995 and the company opened its first Dominos pizzastore in January 1996.The Dominos brand was founded in the United States of America in1960 by Thomas and James Monaghan. Since then, that business has grown into a globalnetwork of over 8,500 pizza stores in more than 60countries, involving over 2,000 franchises.Jubilant BhartiaGroup holds the master franchisee rights for the DominosPizza brand and operations for the whole of India, Nepal,Sri Lanka and Bangladesh. The company will continue touse the brand name of Dominos Pizza for marketing andother related purposes
DOMINO’S PIZZA INDIAWhen Domino’s entered India in 1995, Pizza was quite low on the taste palate of Indians.Fourteen years and 274 stores later, brand Dominos seems to be on a roll, having not onlymade pizzas popular with the country’s burgeoning middle class, but also the brandomnipresent. In an interview with Amit Sharma, Domino’s Pizza India VP, marketing, DevAmritesh, shares the brand’s India journey and the company’s plans for India. Excerpts:From being a foreign snack to being a meal option, how has Domino’s shaped Indianconsumers’ perception of the pizza?We have constantly focused on consumer-centric areas such as product innovation, taste,pricing and customer service. Our several products innovations such as Double CheeseCrunch Pizza, Kebab Pizzas, Cheese Burst Pizza, Domino’s Calzone, Chicken Wingsamongst others, and most recently Pasta, have gone down well with the consumers. As theresult, we have been able to get quick product acceptance from them and often that is the firstand most important bridge that a foreign food category has to cross. On the other hand, offerslike, Pizza Mania at Rs 35/- per Pizza and Fun Meal for 4 has helped us drive value-formoneyproposition allowing access to the brand. We have realised that value for money is anextremely important need for Indian consumers, especially in the context of the food servicesmarket. Then our 30 minutes or free service guarantee gives a differentiated edge to ourbrand amongst the Indian consumers.
Where does the brand Domino’s stand in India and what is the strategy to take it to thenext level?Domino’s Pizza has a widespread presence through a network of 274 stores, spread across 55cities in 20 states. Further, our thirty minutes or free promise helps us reinforce our positionwithin the delivery market. It’s no surprise then, we are the leaders in the organised pizzahome delivery segment, with a market share of 65%, according to the Food FranchisingReport 2009. Now, we seek to increase our penetration through new store openings inexisting cities where we operate stores. The Technopak Report 2009 estimates that only 2%of the monthly expenditure on food bought from outside or ordered-in by households in Indiais spent on pizzas and pastas on a monthly basis. We see that as a opportunity to capitalise onlow penetration.How much of a challenge has it been to market a pizza brand in India?Over the last two years, our sales revenue has grown by more than 100%. Also, the averagesame store growth in the last three fiscals has been around 16%. Our initiatives in the area ofbrand building, product innovation and penetration coupled with the changing demographicsin the country have helped. Some of the factors that have driven growths and perception ofPizzas as a meal option have been changing lifestyles, rising incomes, especially amongstyouth, growing middle class and nuclear families and increase in working women population.So, while there are challenges in every market, the manner in which brands overcome them is whatmatters.
DOMINO’S PIZZA VISIONThe domino’s pizza vision statement is our goal and the guiding principles explain how wedo business.‘’Exceptional people on a mission to be the best pizza delivery company inthe world’’Demand integrityOur people come firstWe take grate care of our customersWe make great pizza everydayWe operate with smart hustle and positive energyEstimated delivery timeLoad timeOutdoor timeDrivers in time
Job description is a written statementshowing job title, tasks, duties andresponsibilities involved in a job. It alsoprescribes the working conditions, hazards,stress and relationship with other jobs.Job specifications, also known as man or employee specifications, is prepared on the basis ofjob specification. It specifies the qualities required in a job incumbent for the effectiveperformance of the job.Once the Job Analysis is done the job vacancy can be posted on the Company Intranet,Classifieds, Job portals, Recruitment agencies etc.Dominoes pizzaEvery firm whether small or large needs people to do even the minutest clerical work forthem. And when there are employees they need to be managed. A small/medium firm maynot have a devoted HR department. In that case, the owner or the manager plays the role ofthe HR head or the firm may hire specialized services of a HR Consultancy.Whereas, large organizations have their own HR department consisting of a head and staffthat directly reports to the head. The HR department may have further bifurcations dependingon the size of the firm and the number of employees.
When we say we require people for the functions of business, how do we acquire people forthese functions? This is done by RECRUITMENT. For recruitment to happen the companyhas to do a Job Analysis of the job to be assigned to an eligible candidate. Job Analysis isfurther bifurcated into 2 sub-parts i.e.Franchise team members must abide by any and all standards established by Domino’s Pizza,India Ltd. Franchise may establish additional policies and procedure. Team members shouldconsult their franchise for clarificationJOB ANALYSIS:This is not a book definition so to say but in layman’s language, Job Analysis means aprocess where the company analyses and defines the skills required to perform a particularjob in the company.
POLICIES AND INFORMATIONRecruitment is the step towards Selection. Generally recruitments are either taken care by theHR Department Head or the manager (whoever is responsible for hiring). There is a processfor hiring a candidate that is usually to be followed in large organizations. When there is arequirement, the HR department is communicated about the same.The HR department then goes through the database of candidates it has or it would send therequirements through Classifieds, Job portals, etc. By sending these requirements, theorganization is likely to get feedback from eligible candidates in the form of CVs. Therequirement advertisement should mention the Job Analysis (Job Description and JobSpecification) so as to avoid attracting unnecessary applications.This also makes it easier for the HR department to shortlist from the applications and this willhelp reduce any bias from the HR resulting due to over examining the applications, boredom,etc. Recruitment and Selection are two different terms even though they are alwaysmentioned together. After the recruitment process is accomplished it gives way to theselection process.Selection process takes place after the HR department has shortlisted from among thereceived applications. The selection is not a lengthy procedure but depends from organizationto organization. The recruitment process is important in order to avoid any mistakes that
would lead to future problems for the company from the candidate’s end. It’s a saying wehave heard in our childhood, “one dirty fish pollutes the entire pond.” Similar is the case withemployees. One wrong employee in the organization may hamper the growth of the entireorganization. The training material is being provided to help store team members understandtheir functions and responsibilities. These materials are intended to complement existingDomino’s Pizza standards. They are not intended to override or replace existing or futurecompany standards.We all have heard that, “Employees are assets of a company.” Every company claims tofollow and understand this mantra. The function of HR is all about people- managing them,hiring them, etc. To carry out any function in a business, be it marketing, production,operations, you need people.HR brings the people to the organization and its business. It is said marketing is promotingyour product in the market place. Similarly, HR is promoting and selling your company in themarket. If you can promote your company efficiently you are sure to attract people to workfor you.When not taking steps to "Avoid the Noid," the leadership and organizational developmentteam at Dominos Pizza incorporates technology into its overall leadership developmentefforts to facilitate a blended learning approach.
With more than 8,000 locations in more than 54 countries, Dominos needs a cost-effectiveway to reach out to a broad audience to support leadership development. Offering a variety ofprograms through its homegrown learning portal, DPZ University (which houses e-learningcontent from a variety of vendors), accomplishes this strategic objective."The nice thing about this is, from home, at night, I can access it; I dont have to be at work,"said Patti Wilmot, executive vice president of PeopleFirst, Dominos Pizzas trainingprogram. "With the business that we run, a lot of our team members work odd hours,particularly our leaders that run our stores. This gives them the opportunity to do it in themorning or whenever they want to do it.""This allows us to put tools in the hands of each and every one of our leaders in an instant,and now weve got a very broad reach out into the marketplace, across this building, into ourdistribution centers and out into the stores," Kissinger said. "Otherwise, we were challengedin having large infrastructures and training departments."Wilmot said the bottom is where its most useful."Its primarily for an early-career leader. Maybe its their first time managing people, and heor she is having an issue with someone around attendance or has lack of results-orientedperformance management skills," she said. "They can go in and get some quick tips on howto sit down with this team member and have a good one-on-one discussion to address thoseskill deficiencies."
PIZZA MAKING TRAININGDomino’s Pizza India has remained focused on deliveringgreat tasting Pizzas and sides, superior quality, exceptionalcustomer service and value for money offerings. Dominoshave endeavoured to establish a reputation for being a homedelivery specialist capable of delivering pizzas within 30 minutes or else FREE to acommunity of loyal consumers from all our stores around the country.Target timeResource neededKey learning pointsRead & practiceSkill checkRead & observe: 1. Grab the correct portion from the make line bin 2. Evenly spread the topping over the pizza 3. Use both hand so you can go more quickly 4. Check quality of the item 5. Place items on the belt outside the oven 6. Try to take the correct portion of cheese from the bin in one or two grab 7. Put items to one side of the belt so that two items can be baked side by side.
PIZZA DELIVERY TRAININGWhen you drive down the road: 1. Delivery troubleshooting 2. Payment at the door 3. Driver check in and drop 4. Driver check out 5. At the door Count out full change, starting from the smallest coins to the largest notes don’t assume the tips. Take the credit card slip and a pen on the delivery Swipe the card or imprint it on the slip and get the customers signature. Treat credit card slips like cash, depositing them in the drop box. To ensure great customer service as well as your safety at all times, you must be ready to handle all type of situations on delivery
BOX FOLDING AND STORAGE 1. Fold the lid so that the flaps go behind and over the bottom flaps 2. Ask your manager how to apply box tops 3. Store boxes by size with groups stacked on top of each other, when the manger takes inventory he or she can quickly count the groups to figure out how many boxes are in stock 4. A box is a food contact surface like a dinner plate or pizza cuter so must be store on clean rack or shelf 5. During the shift, keep the front of the cut table stocked with pizza and side boxes. ORDERING
1. Answering the phone is 1 priority2. Telephone etiquette3. Phone script4. Telephone hold procedure5. Suggestive selling6. Takeaway customer priority and ordering7. Takeaway payment transaction
OTHER TRAININGPersonal hygienePersonal safetyHand washingChemical safetyTotal satisfaction guaranteedDrive defensivelyBox labellingTelephone procedureSink setupMaps and delivery areasUsing hot bags
Primary training: 1. Suggestive selling 2. Cleaning and sanitizing 3. Sweeping and mopping 4. Cleaning the bathroom 5. Prepping, dating and self life 6. Prepping chicken products 7. Using a scale 8. Cleaning the oven 9. Pizza saucing 10.Cleaning beverage cooler HR DEVELOPMENT PROGRAMDomino’s fast-paced global business requires support from strong HR professionals with abroad range of experiences. The HRD Program was designed to develop and prepare futureDomino’s human resource leaders.
During the program you will work in a series of rotational assignments. We’ll work togetherto specifically select these roles to help you achieve your long-term career goals andstrengthen your credibility as a strategicbusiness partner.These positions are held during the first 3-4years of your Domino’s Pizza career andrequire company sponsored relocation(s).Then what?Anything! After learning our business model from the ground up, you will be uniquelyprepared to move into any number of other roles in our People First Team. We’ll worktogether to specifically select these roles to help you achieve your long-term career goals.While participants can move into any area of our business, some of the most popularopportunities are with the employee relations, recruiting, and compensation and benefitsteams.
Foodservice. This award has been bestowed by Indian Retail forum at the 8th annual ImagesRetail Award.Mr. Basab Bordoloi won HR leadership award in Asia’s Best Employer Brand Awards - 2010by World HRD Congress.Mr. Basab Bordoloi won "Most Powerful HR Professional of India" award in Asia’s BestEmployer Brand Awards - 2010 by World HRD Congress.Jubilant FoodWorks Ltd won the award for ’Continuous Innovation in HR Strategy at work’in Asia’s Best Employer Brand Award - 2010 by World HRD Congress.Ranked 9th Best Employer 2009 in India in Hewitt’s Best Employers survey 2009.Ranked amongst the top 25 best employers across Asia pacific market, which includesAustralia/New Zealand, China, India, Hong Kong, Malaysia, Korea & Singapore, in Hewitt’sBest Employers survey 2009.Best employer in Retail and 3rd best employer in Services category in India - Hewitt’s BestEmployers survey 2009.
HR leadership award - 4th Employer Branding Award 2009 - 10Regional Best Employer in hospitality by the "World HRD Congress" in 2009-10.FUN @ Work award by the "World HRD Congress" in 2009-10Highest employee engagement score amongst the "best companies" in BT-TNS-MERCER’s"Best companies to work" in India survey.Featured as "Fun place to work for" by Outlook Business in 2010.
LEADERSHIP DEVELOPMENT PROGRAMAnything! After learning our business model from theground up, you will be uniquely prepared to move intoany number of other roles in the company.We’ll work together to specifically select these roles tohelp you achieve your long-term career goals.While participants can move into any area of ourbusiness, some of the most popular opportunities are in our International, FranchiseDevelopment and Operations, Marketing and Supply Chain Services departments.“The goal of the Leadership Development Program is clear for us…we’re using it to developthe future leaders of this company. We find bright, highly motivated students and then givethem the training and development opportunities they need to become extraordinarilysuccessful at Domino’s. It’s clear to me that many of the Pipeliners will reach the highestlevels in management at Domino’s.”
IN STORE TRAINING IN DOMINO’SAt the heart of our learning and development is store skill training. Our store team membersreceive extensive training that prepares them for "making, baking and taking" pizzas.Advancement from Drivers and Customer Service Representatives to Assistant Managersand General Managers is achieved by completing our Crew Training Program on leadershipand running the business.Crew and AssistantThese workbooks cover every topic you need operational training for: Product quality, safedelivery, customer service, cost controls and sales building. Book 1 includes an audio CD
and store tour. Book 2 includes a multimedia CD with the old CBT classes for sanitation andproduct quality. Book 3 includes a multimedia workbook, action planning projects andclassroom modules, including SMAC objectives, P&L and leadership.Assistant Manager ClassroomWe have eight new two-hour classroom training workshops to cover critical Book 2 topicssuch as safety & security, product quality, sanitation/equipment maintenance, customerservice, opening/closing, sales building, cost control, and PeopleFirst.High Performance General ManagerThis two-day interactive learning experience revolves around goal setting and training in theareas of operator, customer, sales builder, leader and trainer.Effective Supervision, at the World Resource CenterThe Effective Supervision class is a three-day workshop specifically designed for Domino’sPizza multi-unit franchisees and supervisors. Its highly-interactive format includes a specialleadership segment from CEO Dave Brandon called “The Team, The Team, The Team.”Other topics include: the role of the supervisor, the eight types of effective store visits,planning a productive and effective week, how to conduct effective AM and GM meetings,internal theft detection and investigation, and building a strong bench.
Domino’s Pulse Training, at the World Resource CenterThis new three-and-a-half-day class covers everything from preparing for your first shift toteam member check out to menu and labor management. OVERVIEW OF BUSINESSAccording to the India Retail Report, 2009, Dominos is the largest pizza chain in India andone of the fastest growing multi-national fast food chains between 2006-2007 and 2008-2009,in terms of number of stores. The Food Franchising Report 2009 has estimated that it is oneof the largest and fastest growing international food brands in South Asia and the marketleader in the organized pizza home delivery segment in India with over 65% market share. Asof August 31, 2009, the company has operated 274 stores in India located in 20 states andunion territories, including in 55 cities across the country, and, through a sub-franchisee, fivestores in Sri Lanka.On an average, 1.81 million pizzas, including add-ons such as garlic bread and cheese dip butexcluding beverages ("Add-ons"), were sold each month throughout the pizza stores in Indiain fiscal 2009 and for the three months ended June 30, 2009, 2.36 million pizzas (includingAdd-ons) were sold each month. The company operate as of August 31, 2009, four regional
supply chain centers, or commissaries, located in Noida (Delhi NCR), Mumbai, Bangaloreand Kolkata.They have recently renewed their contract with master franchise controller DominosInternational. The new contract is for 15 years, it gives them exclusive rights for operations inIndia, Nepal, Sri Lanka and Bangladesh.Objects of the issueThe issue comprises of 2.27 crores equity shares of face value of Rs.10 within a price band ofRs.135 and Rs. 145. The issue size is Rs. 306.45 crores at the lower price band and at theupper price band it is Rs. 329.15 crores. The offer comprises a fresh issue of 4,000,000 equityshares by the issuer and an offer for sale of 18,670,447 equity shares by the India PrivateEquity Fund (Mauritius) and Indocean Pizza Holding Limited which are looking to exit theholding in Jubilant Foodworks. Post issue the holding of promoter will reduce to 62.19%from the current holding of 66.36%.Investment Concerns- Increase in cost of raw-material prices can adversely affect the profitability.- Competition from Pizza Hut, Mc Donald, KFC and emergence of local pizza outlets.- Customers tastes and preferences can change leading to fall in demand.- Company has to be constant in the innovative mode in the menu to avoid the customerfatigue.
- Increase in lease rentals is a cause of concern, which may dent margins going forward,which is a negative for the business. RECOMMENDATIONThe company is available at a P/E multiple of 35.46x & 38.08x FY10E (H1 FY10Eannualized) at the lower and upper price band respectively on post issue capital, which looksexpensive as compared to some of its peers. The growth in the first half results of the currentyears was exceptional when compared to last few years, which is a positive sign for thecompany but sustainability of such growth remains to be seen in the coming quarters. Thecompany looks all set to grow in the next few years with a huge number of new storesexpected to open in next 2-3 years. However the current valuations look steep, though webelieve a good growth in the next few quarter may justify the valuations going forward