Dominos India launches cheapest pizza in the world to battle inflation

As part of Dominos’ cost-cutting plan, all lids have been removed from the boxes of the pizzas sold in-store. This has contributed significantly in saving packaging costs.

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 | July 20, 2023 , 4:47 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)

India is currently riding an inflation curve. Skyrocketing food prices in India are hurting consumers hard. Prices for staples such as rice, pulses and tomatoes, essential items are getting expensive to add to the shopping bag.

Increase in price leads to lower demand, it’s how demand and supply works. So how do brands cope with this? If they lower their prices, they won’t be able to make a profit. Inflation doesn’t only affect the consumer, it affects the seller too.

Well, Dominos seems to have cracked the code. Dominos is the world’s biggest pizza brand and India is its second largest market outside the USA. They’ve launched a seven inch pizza for just Rs. 49. It’s the cheapest pizza in the world, reported Reuters. A new and attractive proposition for the priced-out consumer. Of course, a new product can’t be the only thing that’ll help the brand sail through this historically high inflation tide. They too have cut costs where they can without causing inconvenience to the customer.

In a conversation with Reuters, Jubilant Foods’ Sameer Khetarpal said that he holds meetings with staff members every Monday to brainstorm ways of managing costs. The company’s profits were down 70 percent in the first three months of 2023. As part of the cost-cutting plan, all lids have been removed from the boxes of the pizzas sold in-store. This has contributed significantly in saving packaging costs. Jubilant is also trying to secure rent rebates from landlords by offering them upfront payments. Dominos accounted for $635 million in revenue last year for Jubilant Foods.

The Rs. 49 segment is a competitive one in a country like India, where street food is ever-popular. Consumers will shy away from spending high amounts of money when they can get a hit and tasty snack like the Vada Pav for around Rs.10.

Dominos isn’t the only chain trying to weather this storm. Pizza Hut has been constantly promoting its pizzas that start at Rs. 79 since last year. This is also the lowest priced pizza that the brand offers globally.

McDonald’s recently in June, announced half-price meals. The brand hopes that this move will help bring in more customers and boost sales and increase margins.

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