American pizza chain Papa John’s is making a fresh bid for India, eight years after calling it quits. The world’s third-largest pizza chain, which exited the India market in 2017, will re-open its first store in Bengaluru in October, with plans to launch 650 outlets in the next few years, a top executive said.
The relaunch will mean that the world’s top three pizza chains including Domino’s, Pizza Hut and Papa John’s will compete for a share of wallet in India, coming at a time when the domestic pizza market, valued at Rs 15,000 crore is growing annually at 9.3% per annum, according to industry estimates.
Rising Competition in Pizza Space
Domino’s Pizza has 2,240 stores in India, while Pizza Hut has over 1,000 stores in the country, between franchisees Devyani International and Sapphire Foods. A fourth player called Little Caesars, among the world’s largest family-owned pizza chains, launched a store in Delhi in June, with plans to add around 100 stores in the next few years.
“The fast-food market in India is underpenetrated. There are many years of growth,” Vish Narain, managing partner at Pulsar Capital, which is bringing Papa John’s back into India along with partner PJP Investments Group, said. Both are joint master franchisees of the brand in the country.
Domino’s Expansion Plans and Market Outlook
In a conversation with FE, Jubilant FoodWorks MD & CEO Sameer Khetarpal said that he welcomed competition. Jubilant FoodWorks is the master franchise of Domino’s Pizza in India. “The food services market in the country is growing. There is room for all, with first-time consumers growing in smaller towns and cities as chains expand their presence,” he said.
Domino’s, Khetarpal said, had set a target of adding 1,000 stores in the next three years in the country. “It took us 28 years to get to 2,000 stores. We want to accelerate that pace and add stores aggressively over the next few years. We believe the time is just right to do it,” he said.
While fast-food or quick-service restaurants have had a difficult last few quarters owing to the urban slowdown in the domestic market, the second half of the current fiscal is likely to see a revival in consumption led by monetary and fiscal policy measures. A likely GST cut around Dussehra-Diwali, experts said, may also put more money in the hands of people for discretionary consumption.
Narain said that Papa John’s, best-known for its garlic sauce and crusted pizzas, will tailor its offerings to local tastes, much like its fast-food rivals who’ve Indianised menus. KFC sells a paneer zinger burger, Domino’s offers a chicken tikka pie, and Subway serves a potato-patty sandwich.