Domino's is facing the challenge of navigating rampant inflation in India, which is impacting profits and making it difficult for customers to afford their regular menu items.
To address this issue, the CEO of Domino's franchisee in India, Sameer Khetarpal, told Reuters that the Rs 49 pizza as a crucial weapon in their fight against inflation. They aim to "own that price point" and attract customers with this stripped-down, seven-inch cheese pizza topped with a "sprinkle" of basil and parsley, which is the cheapest pizza offered by Domino's anywhere in the world.
Khetarpal emphasizes that customers are increasingly eating out less due to the higher prices, making it essential for Domino's to retain its existing consumers and prevent them from turning to competitors. By offering an affordable option like the Rs 49 pizza, they hope to entice customers to visit their stores or order through the app and potentially choose additional add-ons or upgrades, increasing overall sales.
The inflationary pressures are affecting not only Domino's but also other global fast-food giants like Pizza Hut and Burger King operating in the Indian market. The competition is fierce, as they have to contend with a thriving street-food culture where items like sizzling samosas can be bought for as little as 10 rupees.
To counter the impact of inflation on their business, Khetarpal conducts regular staff meetings to brainstorm cost-saving measures. Domino's India has already taken steps like removing lids from pizza boxes, which has resulted in significant savings in packaging costs, especially since a considerable portion of their business in India is dine-in.
In this highly price-sensitive market, all fast-food companies are focusing on competitive pricing strategies to retain their market share in India, a critical market for their long-term growth and success.
