Summary
The Indian pizza already offers a bewildering variety of pizza but there is still room for more, and Indian consumers are always willing to try out a new chain. QSR traffic seems to be building back up during the summer, but some new entrants are yet to crack the code.[Also read "Pie in the sky"]
Analysis
The Indian pizza already offers a bewildering variety of pizza in terms of price points and toppings, including seekh kabab topping on the one hand as well as 'Jain' pizza (no meat, and no onions whatsoever) on the other.
International chains Domino's and Pizza Hut visibly rule the "branded" market in terms of outlet footprint and number of pies sold, but there is a much larger - unquantified - market of unbranded and local pizzerias.
However, there is still room for more, as Indian consumers are always willing to try out a new chain.
While the recent economic slowdown did visibly impact consumer spending on eating-out (particularly in the large cities), QSR and casual dining traffic seems to be building back up during the summer.
Domino's and Pizza Hut have considerably grown their footprint, but some of the newest entrants are yet to crack the code to succeeding in India.
The critical factor for any QSR and casual dining chain is not getting the initial walk-ins, but sustaining quality in the face of high staff turnover and high input costs (real estate, materials, people) relative to the prices that they can charge.
[Also read "Pie in the sky"]This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
