Customers empty pocketsĭomino's is not alone in zeroing in on prices in India, a highly price-sensitive market that is currently facing higher inflation than many other markets including the U.S. Jubilant - whose Domino's business accounted for most of its $635 million in revenues last year - also aims to secure rent rebates from some store landlords by offering upfront payments, Khetarpal said, declining to give further details about cost benefits. He said that amounts to a significant saving in packaging costs because 37% of Domino's Indian business is dine-in. He gave new details of Domino's India pivot and its financial gains his company has removed lids from all boxes of pizzas sold at stores starting December, saving 0.6 cents each time. Khetarpal, whose Jubilant FoodWorks runs Domino's 1,816 outlets in the country, says he holds a staff meeting first thing every Monday to brainstorm new ways to manage costs and fight the "historic high inflation" that contributed to its profits sliding 70% in the first three months of 2023.Īlso read| Woman eats pizza cooked on an active volcano in Guatemala The companies are striving to hold onto market share gained over three decades of rapid growth in a nation critical to their futures - and one where it's tough to compete with a street-food culture and a sizzling samosa for as little as 10 rupees. Reuters interviews with six executives and 12 store managers revealed how Domino's and other global fast-food giants like Pizza Hut and Burger King are being forced to change tactics to weather rampant inflation in the market of 1.4 billion people. Domino's global HQ referred queries about India to its local franchisee. In Shanghai, by comparison, Domino's cheapest savoury pizza is priced about $3.80, and in San Francisco about $12, online menu prices show. "Customers are going to eat out less because prices are higher everywhere - our existing consumers should not go out to some competition." "You are coming to the store or open the app, because there is a 49-rupee callout," he said, adding that Domino's global team supported the plans. The company wants to "own that price point", said Sameer Khetarpal, confirming the stripped down, seven-inch cheese pizza with a "sprinkle" of basil and parsley is Domino's cheapest anywhere. Also Read| DNA match in pizza crust lead to Rex Heuermann's arrest in Gilgo Beach killings
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