Utility

Dominos Launches Its World’s Cheapest Pizza In India; But Why?

Dominos – the world’s biggest pizza brand has come up with the cheapest pizza in the world. According to the CEO of Domino’s franchisee there, Sameer Khetarpal the Rs 49 pizza is the tip of the spear in the company’s battle against rapid inflation that is pinching profitability and pricing out many customers. India is Domino’s No. 1 market outside of America.

Dominos CEO wants to “own that price point”

Asserting that the basic, seven-inch cheese pizza with a “sprinkle” of basil and parsley is Domino’s cheapest offering everywhere, Sameer Khetarpal said the company wants to “own that price point”.

He added that the ideas were endorsed by Domino’s international team. “You are coming to the store or opening the app because there is a 49-rupee callout,” he said. Prices are rising everywhere, therefore customers will eat out less. Existing customers shouldn’t visit a rival restaurant.

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A comeback to the historic high inflation

Domino’s 1,816 locations are managed by Khetarpal’s Jubilant FoodWorks, and he says he has a staff meeting the first thing on Mondays to come up with new cost-control measures and combat the “historic high inflation” that caused the company’s profits to decline 70% in the first three months of 2023.

He provided updated information on Domino’s India pivot and its financial benefits, including the removal of lids from all pizza boxes that were sold in stores beginning in December in order to save 0.6 cents each time. Given that 37% of Domino’s Indian business is dine-in, he claimed that this translates into a sizable reduction in packing costs.

Jubilant, whose Domino’s company generated the majority of its $635 million in revenues last year, also hopes to obtain rent rebates from some store landlords by making upfront payments, according to Khetarpal, who declined to provide more information on the advantages.

Srishti Verma

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