Domino’s Makes Its Large Pizzas Cheaper By 50% To Meet Competition From Smaller Rivals

In good news for pizza lovers, Domino's, India's largest pizza chain, has reduced the rates of their large pizzas by almost 50%. The decision has been taken in response to the dynamics of the quick-service restaurant (QSR) market in India as Domino's faces competition from other rivals including Tossin, South Korea's GoPizza, Leo's Pizzeria, MojoPizza, Ovenstory and La Pino'z.

According to the Economic Times report, the move by the US pizza chain underscores that the trend in fast-moving consumer goods - of local players giving stiff competition to already established brands, and even outgrowing them in select markets - has expanded to QSRs in the country.

Besides, the rate cut decision also signifies the need for Domino's to adapt to evolving market conditions and cater to changing consumer preferences amidst rising prices.

Last week, Domino's sent messages to its subscribers informing them about an "epic price drop on large pizzas", the Economic Times reported on September 4.

According to the report, Domino's Pizza has slashed the prices of large vegetarian pizzas from Rs 799 to Rs 499, and that of non-veg large pizzas from Rs 919 to Rs 549, making them more affordable for customers. Jubilant FoodWorks, the Domino's Pizza chain operator in India was reluctant to give detailed comments on account of the company's silent period prior to the quarterly results.

Jubilant FoodWorks recorded a drastic 74% year-on-year (YoY) decline in net profit, amounting to Rs 28.91 crore, during the June quarter on the back of challenging demand conditions and tough competition within the QSR industry.

Noticeably, many popular Western-style QSR brands, like Domino's, Burger King, Pizza Hut, and KFC, have experienced a slowdown in sales over the past three quarters on account of heightened competition from local business rivals and rising costs. In response, the big brands are adjusting their strategies by lowering prices, making cost-effective product offerings, and increasing their reach in untapped cities to get new customers.