Domino’s slashes pizza rates to compete with smaller and newer rivals

The calculated price reduction by Domino’s Pizza is a reflection of the broader trend in the fast-moving consumer goods (FMCG) sector, where local players are increasingly challenging established brands and even surpassing them in specific markets.

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 | October 4, 2023 , 3:33 pm
Of the QSR/ fast food chains that they have heard of, McDonald’s and Domino’s top the rankings, with almost half (46 percent) choosing them as their favourite brands. KFC comes in next (42 percent), followed by Pizza Hut and Burger King (27 percent and 24 percent, respectively). (Representative Image by Vit Ch via Unsplash)
Of the QSR/ fast food chains that they have heard of, McDonald’s and Domino’s top the rankings, with almost half (46 percent) choosing them as their favourite brands. KFC comes in next (42 percent), followed by Pizza Hut and Burger King (27 percent and 24 percent, respectively). (Representative Image by Vit Ch via Unsplash)

Domino’s has decreased the prices of their large pizzas by almost half. The pizza segment has become increasingly competitive due to the emergence of smaller and newer rivals such as Tossin, GoPizza, Leo’s Pizzeria, MojoPizza, Ovenstory, and La Pino’z, as The Economic Times.

The calculated price reduction by Domino’s Pizza is a reflection of the broader trend in the fast-moving consumer goods (FMCG) sector, where local players are increasingly challenging established brands and even surpassing them in specific markets.

This trend has now extended to the quick-service restaurant (QSR) industry in India, where Domino’s is adapting its pricing strategy to remain competitive. Domino’s last week sent messages to its subscribers informing them about an “epic price drop on large pizzas”, The Economic Times report stated.

Domino’s Pizza has taken a significant step by slashing 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, the report said.

This strategic move is aimed at making Domino’s pizzas more reachable and competitive, especially in the face of emerging and smaller rivals in the Indian QSR market.

The parent company, Jubilant FoodWorks, was reticent from providing detailed comments due to the company’s silent period ahead of quarterly results.

Jubilant FoodWorks shared a huge 74 percent year-on-year drop in net profit, amounting to Rs 28.91 crore, during the June quarter due to various factors, including challenging demand conditions and fierce competition within the QSR industry.

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