Why pizza is a winner in India’s fast-food race

As fast service restaurants examine how much value the Indians get out of food, it is increasingly difficult to enlarge the same store sales or sales in the same number of stores in a period.

Consumers effectively measure calories per rupees, and in this criterion pizza offers the best explosion of money, better hamburgers, Biryani, Chinese dishes and Indian snacks.

Bernstein’s more than 120 food or restaurant combination analysis found that an average person could meet daily diet needs LaIt was compared with a pizza chain 525 and 16-126% higher in other kitchens.

Pizza’s share of chain restaurants in India is expected to increase from 20% to 20% in 2023-24 and said the category has expanded to $ 7 billion by 2030.

Pizza Pizza = Naan + Cryi + Protein/Vegetables, değ said Note, with Indian taste preferences, versatility and harmony made Italian origin meal uniquely in the country.

Affordable good food was the main lottery of fast-food chains and fast service restaurants in India, but they gradually priced themselves from the middle-class consumer’s wallet. Average Order Values ​​in Organized Fast-Food outputs La400-500, far above La118 shows the UPI transaction data that consumers spend typically in local restaurants per meal.

Bernstein said this acquisition difference has slowed down the expansion. “In order to convert the next user set from local kitchens/unorganized sales points, QSRs need to focus on calories/rs.”

Despite its potential, India’s Food Services Industry has grown in an annual growth rate of 8% in the last decade and reflects affordable price restrictions.

According to research on people on the consumer economy (Price), the middle class of India is expected to grow from 432 million to 2030-31 in 2020-21 to 715 million and 1.02 billion or 61% of the population.

The double of the consumer base can make India one of the largest markets in the world for affordable food and create an important growth opportunity that can position themselves first for QSRs.

Winners and Loser

“Pizza continues to be the best category in QSR, because Satish Meena, the founder of Datum Intelligence, said, because it is largely affordable, accessible and easy to share,” Pizza continues. Mint.

“Domino was able to scale faster due to the delivery model and 30 -minute promises. Pizza Hut fought to reproduce itself, but we see smaller chains and independents trying to capture the area,” he said.

As of June, Jubilant Foodworks Ltd, the largest pizza chain operator of India, which has more than 2,240 Domino’s franchise ownership store, also runs Popeye’s, Hong’s Kitchen and Dunkin ‘Donuts. The company reported that Domino’s sales in April-June is an annual increase of 17.1%, largely due to a growth of more than 20% in the delivery of pizzas home.

About three quarters of Domino’s income in India comes from delivery and said that those who eat at dinner came for a pizza at noon. Jubilant General Manager Sameer Khetarpal said that “calibrated pricing olmak helps the company to overcome competition, including measures such as new measures La99 Lunch Agreement.

In June, the opponent Pizza chain operator Devyani International Ltd closed 12 pizza huts in June and had a 618 pizza chain at the end of the first financial first quarter. Sapphire Foods India Ltd, 336 pizza hut outlets belonging to US -based Yum! Brands Inc.

Devyani and Sapphire also run KFC stores in India.

However, he focused on the results of disputes on brand expenditures between Sapphire and Devyani.

Sapphire Foods’ income from the Pizza Cuts fell by 6% in the first quarter, the same store sales fell by 8% and the margins turned negatively, he said.

As for Devyani’s Pizza Hut Business, the first quarter sales remained slightly below 3% annually. La187.3 Crore. While approximately 55% of this is one of the deliveries, the same store sales fell by 4.2%.

India’s Pizza Market has a few fast -growing special competitors, including a furnace story, a cloud cuisine brand operated by 700 restaurants La Pinoz Pizza and Mumbai -based Rebel Foods.

Bernstein, Jubilan Foodworks and Devyani International are recommended for “better performance”. For Sapphire Foods, the pizza hut marks the operation of the company as a risk factor and has the degree of “realizing” by seeing value in KFC business.

Sagar Daryani, Wow’s founding partner and CEO, said, “It is wrong to say that Pizza is of course better than other foods,” Sagar Daryani said. Momo, Momo sells QSR chain. “If that’s the case, other brands such as Pizza Hut, Sbarro and more would not struggle to make money.”

According to Daryani, the real profitability measure for restaurants does not come from the menu, but from gross margins that the fast-food chain can be attracted.

Wow! Daryani said Momo was in 72% gross margin and reported 9% growth in the same store sales in June. “The main problem with the big, listed fast-food players is that 10-12% of their sales come from delivery before the pandemi, but now up to 55-60%. [between Swiggy and Zomato]costs [will] rise. “

With pizzas, perhaps proposed Rahul Nijhawan, the founding partner of Bonomi, a coffee chain based on Bengaluru.

“Pizza is about spending more power and a symbol that shows that I have come to life,” he said. “In my opinion, the undisputed leader, and this is the largest food category in India.

Waiver: Jubilan is interested in HT Media Ltd, the main company of Mint, supporters of Food Business.