Do you use BI to determine your toppings? How else do you use this data?

We normally study which pizzas on our menu sell better. This aids us in removing pizza combinations that are out of fashion and keep our menu simple.

We also try to keep customer information updated. And, all these processes reside on our POS system. We have a pull-push mechanism through which this data goes onto a server that facilitates high-end analytics. Then, we re-feed all this data back to the store. There are some programs that run internationally and some that run locally. This data tells us what we should offer to customers based on their past preferences and how frequently they visit us, since we now have all these parameters.

It's fairly scientific. We have millions of customers and keep track of the toppings each uses and their visit-frequency, so that we know what to offer. To my mind, we have a best-in-class system. I doubt anybody in any food service or retail food business does this as well as we do.

Managing inventory and the supply-chain is another challenge in the fast-food industry. How do you stay on top of that?

We deal in perishable items so it is importance that we procure the right quantity, at the right time or end up with wastages or contamination. With IT we can optimize procurement and dispatch of inventory to outlets spread 35 cities. To do this, we use our ERP combined with co-ordination between operations and procurement.

Inventory is centralized region-wise where the commissary (equivalent to a factory or warehouse) of particular region procures and supplies all items needed by outlets according to pre-determined dispatch plans. Outlets forward items they need to the commissary, based on which the items are procured or produced and supplied to the outlets. The inventory position is constantly monitored using ERP and the purchase and manufacture of items are based on that.

Domino's intends to ramp up to almost 500 outlets over the next three years. What challenges do you foresee?

The key challenges in the current retail boom environment are manpower and rentals. At present, we have over 5,000 employees for over 182 outlets. It indicates that over the next three years we will need to triple our manpower. This at a time when retail has just started to take wings. Attracting, recruiting and training manpower is a first key challenge.

Also the way the rentals have moved up makes the search for good locations at reasonable prices a difficult task. We have laid internal benchmarks in terms of ROI on all new stores and the increase in rentals will put considerably pressure on that.

You spent two years in Indonesia with the delivery company TNT Express. What did you learn that you use today?

Domino's is 5,000-strong company with over 180 stores in 33 cities. My stint at TNT gave me an experience of working in a diverse culture. It taught me flexibility and resilience which is useful in dealing with the diversity of cultures, religions and work practices in India.

Additionally, I also picked up good QSR (Quality System Review) practices that we utilize here. Indonesia is a few years ahead in terms of evolution of food services, thanks to the presence of QSR.

So, what kind of quality control measures does Domino's have in place?

In our kind of industry, where we have some of the most stringent food preservation norms, so we require a 'cold chain' right from the time material leaves the vendor. Until the material reaches us, it is stored under temperature-controlled conditions and even when it moves to our stores in 182 destinations.