Domino's, the world's largest pizza chain, is set to serve its famed pies to Bangladeshi customers within the next three months, tapping into the growing demand for Western fares among the upwardly mobile population.
The American pizza brand's entry comes after Golden Harvest QSR, a subsidiary of Golden Harvest Agro Industries, entered into a joint venture agreement with Jubilant FoodWorks, the master franchise holder of Domino's in India, Sri Lanka, Bangladesh and Nepal.
Jubilant FoodWorks, which also holds the franchise of Dunkin' Donuts in the four countries, will be the major shareholder in the joint venture entity -- Jubilant Golden Harvest Limited -- with a 51 percent share. Golden Harvest will have a 49 percent stake.
Domino's would be the fourth American pizza chain to enter Bangladesh after Pizza Hut, Pizza Inn and Sbarro.
As the eighth most populous country in the world with the highest population density and a young demographic, the Bangladesh market presents a great growth opportunity for Domino's, said Pratik Pota, chief executive officer of Jubilant FoodWorks.
The deal has been in the works for the last two years, according to Mohius Samad Choudhury, a director of Golden Harvest Group. “We have surveyed the market and found that there will be huge potential for pizza.”
The first Domino's store, which would be in Dhaka, is expected to open its doors within the next three months, according to Choudhury.
The pricing would be reasonable, he said, adding that a 30-minute delivery service will also be rolled out.
“We are confident that with Jubilant's strong operational expertise and Golden Harvest's deep understanding of the Bangladesh market, we will be able to carve a strong position in the food services market in the country,” Pota added.
Golden Harvest would be providing the pizza ingredients, while Jubilant FoodWorks, which operates 1,128 Domino's restaurants and 43 Dunkin' Donut stores in India, will be in charge of the stores and the other logistics.
“This partnership has huge potential and with Jubilant FoodWorks' support, we are confident that we would be able to deliver a great pizza experience to customers in Bangladesh,” said Rajeeb Samdani, managing director of Golden Harvest Group.
The paid-up capital of the joint venture company would be Tk 10 crore and about Tk 15 crore would be spent to set up the joints and other logistics, according to Choudhury.
Shares of Golden Harvest Agro Industries closed 2.46 percent higher at Tk 41.50 yesterday.