Traditionally a quick service restaurant, Domino’s Pizza is expanding its base in India by opening 500 outlets to add to its current tally of 156 outlets, across 50 cities in India by 2011 with an investment of Rs.1,000 crore.
The organized pizza market in India is worth Rs.500 crore and Domino’s has a substantial 45% market share, and registered a healthy growth of 60% over last year.
The main target for new outlets shall be metro cities though Tier II cities would also receive a fair amount of attention. Currently Domino’s sells around 35,000 pizza every day, of which around 1% are given free on account of its “30 minutes or free” model.
It is also contemplating opening more dine-in stores which is in contrast to its global strategy of having sales through home delivery. This is because Indian people tend to eat out more rather than having outside food taken or delivered at home.
In India, Domino’s major competitor is Pizza Hut which holds around 30% market share. Other players are US Pizza, Pizza Corner, Smoking Joe’s who also have a sizeable national presence. Apart from this it faces competition from snack food restaurants like Nirula’s.
To improve its Indian sales, Domino’s should also start to offer Indian customised offerings catering more to local just like other chains have been doing and which has been received with good response.
Find this article at: http://www.labnol.org/india/corporate/dominos-pizza-expanding-to-concentrate-on-dine-in/1252/
Tags: competition, food, Corporate, India
