(Adds particulars on outcomes, shares in paragraph 3-9)

CHENNAI, July 25 (Reuters) – Jubilant FoodWorks reported a 74% fall in quarterly revenue on Tuesday as Domino’s Pizza’s Indian franchisee grappled with increased prices whereas additionally spending closely to develop within the nation.

Consolidated revenue fell to 289.2 million rupees ($3.53 million) within the quarter ended June 30, from 1.13 billion rupees, a yr earlier, Jubilant stated in an trade submitting.

Restaurants in India have been scuffling with increased costs of important gadgets starting from milk and greens to packaging materials, forcing them to introduce new methods to guard their bottomline.

Jubilant has taken steps like eradicating lids from bins of pizzas offered at shops beginning December and making an attempt to safe lease rebates from retailer landlords by providing upfront funds. It additionally launched extra inexpensive pizzas earlier this yr, to draw inflation-hit prospects.

Total bills climbed 13% to 12.49 billion rupees within the first quarter, with standalone gross margin contracting 69 foundation factors to 76%.

Key enter prices are holding agency in a difficult inflationary surroundings, Jubilant stated in an announcement.

The firm, nevertheless, continued to open new shops in India to seize an even bigger slice of the burgeoning middle-class inhabitants’s spending in the long term. It opened 23 Domino’s shops throughout the quarter, with its whole retailer depend at 1,838.

The store-opening spree helped total income rise 6% to 13.35 billion rupees, though Domino’s India like-for-like gross sales – a key same-store gross sales metric – slipped 1.3%.

Shares rose 4% as Jubilant stated it plans on including 200-225 Domino’s shops in India by March 2024. Shares had declined about 9% this yr, as of the final shut.

Jubilant is the primary amongst listed restaurant operators to report, with McDonald’s franchisee Westlife Foodworld posting its outcomes later this week. ($1 = 81.8250 Indian rupees) (Reporting by Praveen Paramasivam in Chennai; enhancing by Eileen Soreng)