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| Image ~ Vecteezy |
American multinational pizza restaurant chain, Domino's, has made a price-cuts in its large pizzas range, by up to 50%. According to news reports, competition in the pizza segment has increased rapidly due to smaller homegrown outlets like Laziz Pizza, Tosin, Instapizza, Gopizza, Leo's Pizzeria, Mojo Pizza, Ovenstory and La Pinoza.
Customers — working-out to sweat (pun intended) — can now enjoy their favorite large vegetarian pizzas for just Rs 499, a significant discount from their former price of Rs 799. While, non-vegetarian pizza lovers may now get large pizzas for a tempting price of Rs 549, a substantial reduction from the prior price of Rs 919.
This price cut from Domino's comes at time of ongoing ICC Cricket World Cup.
The price cut by Domino's Pizza is certainly a reflection of the rapidly increasing competition in the FMCG sector wherein local companies are increasingly challenging big brands and companies. These companies have even gone ahead of the big companies in some markets.
Domino's is now working on a strategy to cut prices in the Quick Service Business (QSR) market in India. According to news running in the media, on September 4, Domino's decided to cut the prices large pizzas by sending a message to its customers.
Big multinational brande like Domino's, Burger King, Pizza Hut and KFC had faced a decline in sales due to increasing competition resulting in price cuts by these big brands. Pizza Hut is currently targeting cities with a population of more than 10 lakh. Pizza Hut has reduced the price of its Flavor Fun from Rs 200 to Rs 79. The share of local players in India's pizza market is about 30%.
Homegrown Pizza outlets form 30% of the total pizza outlets in India. A cut-throat competition and a cluttered pizza market made Domino's to witness a 74% decline in Y-o-Y net profit during the first three months of FY24.
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