The Pizza Fad Fades In India
’30 minutes or else free’ – that’s a line everyone remembers for that meant a waiting period before they got to dig into their cheesy slices of joy. But now, this doesn’t seem to be a problem anymore. Try to think of the last time you ordered pizza… a lot of you probably can’t!
It’s not that people have stopped eating pizza altogether. A majority of the population still loves their pizza. But, the exponential profit margin earned by this industry has narrowed down since 2011-14.
The dip in the pizza consumption in the domestic market has been reflected in the same store sales growth of brands like Pizza Hut. Restaurant chain Yum India owned Pizza Hut and KFC, which contribute 1% each to their global divisions, reported 7% year-on-year same store sales decline of Pizza Hut for the April-June 2016 quarter. Another brand, Jubilant FoodWorks-owned Domino’s Pizza and Dunkin’ Donuts outlets in India, reported a 9.3% decline in net profit in the quarter that ended 31st December 2015. Papa John’s, run by Om Pizza & Eats Pvt Ltd, is also, as per industry sources, not doing well
What’s causing the decline of the ‘Za?
Although fast food continues to be a popular option amongst children, the employed consumer base is starting to switch to healthier types of meals. A study says that health and wellness consciousness is reaching its peak amongst young urban consumers. With lack of time and rising disposable incomes, local consumers are reaching the stage where they do not mind spending extra money on healthier food options
As a meal choice, Pizza has been outdone by more economically viable options. Also, Indian food joints with pocket-friendly offerings have a lot more varieties of food at the same price of a pizza. For that matter, families on an outing tend to prefer traditional Indian restaurants over pizzerias or fast food joints. Local eateries can slash their rates because they don’t have royalty to pay as in the case of pizza chains. Another factor could be the hike in skilled labor with a sharp rise in real estate prices. All these factors have put pressure on pizza brands to keep the prices in check without compromising on the quality of the product. As a result, fast food has been seeing slower growth in the past two years
Is It The Reign of the Burger now?
Not a meal option yet, burgers are definitely food that you can grab on the go. Experts say that the average price of a burger continues to be lower than pizzas. As a result, certain sections of the population prefers burgers over pizza.
What’s cooking, doc? It’s Biryani!
Biryani is probably the most popular item being ordered nowadays. This may be because biryani is considered to be a complete meal on its own, and does not require ordering anything else with it. Furthermore one can order a full biryani priced anywhere between INR100-INR500. The affordability and wholesomeness of this meal, makes biryani a popular choice amongst people of diffrent ages amd different economical classes.