Domino’s serves up world’s cheapest pizza in India to survive runaway inflation
- The US$0.60 seven-inch cheese pizza is the tip of the spear in Domino’s fight against rampant inflation that’s squeezing profits and pricing out customers
- Other fast-food giants like Pizza Hut and McDonald’s have also changed their business tactics, offering low-priced snacks to attract more patrons and boost sales
Q: How does the world’s biggest pizza brand respond to high inflation in the world’s most populous nation? A: With the world’s cheapest Domino’s pizza.
The 49-rupee (US$0.60) pizza in India, Domino’s No. 1 market outside America, is the tip of the spear in its fight against rampant inflation that’s squeezing profits and pricing out many customers, according to the CEO of its franchisee there.
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.
“You are coming to the store or open the app, because there is a 49-rupee call-out,” he said, adding that Domino’s global team supported the plans. “Customers are going to eat out less because prices are higher everywhere – our existing consumers should not go out to some competition.”
In Shanghai, by comparison, Domino’s cheapest savoury pizza is priced about US$3.80, and in San Francisco about US$12, online menu prices show. Domino’s global HQ referred queries about India to its local franchisee.
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.