Domino’s Pizza Inc. will add 150 new stores in India every year for the next two to three years, chief executive Patrick Doyle said, as the fast-food chain aims to expand its footprint in the South Asian nation that is already its largest market outside the U.S.
“We believe India is going to continue to be a terrific growth market for us,” Mr. Doyle said in an interview ahead of the opening of Domino’s 1,000th store in India on Friday. “I remain incredibly bullish on the Indian economy.”
India has been one of the bright spots in Domino’s portfolio, while most other big American fast-food chains derive their growth from China. Rival Yum! Brands Inc., which owns Pizza Hut and KFC, makes nearly half its revenue in China, for example.
Even so, Domino’s stores in India account for only 5% of the company’s sales; its outlets in the U.S. account for nearly half.
Mr. Doyle said Domino’s success in India was down to the power of localization and longevity.
The company entered India 20 years ago — among the first foreign fast-food chains do so — and has since topped its pizzas with local flavors from paneer or Indian cottage cheese, to tandoori chicken.
It also customizes its menu for different regions of the country. In 2014, for example, Domino’s rolled out a spicy banana pizza for consumers in southern India. Last year, it began delivering pizzas to passengers on India’s vast state-run railway network.
In China, Domino’s had blamed its struggles in part on the fact that cheese and bread aren’t staples of the traditional Chinese diet. It signed a new partner in China a few years ago in an attempt to fight competition from brands like Pizza Hut, which serves a selection of other Western fare, including ribs, spaghetti and steak in its casual dine-in restaurants.
Source: This is How Domino’s Plans to Win the Pizza War in India – India Real Time – WSJ
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