pizza hut

Franchise News India,Franchise In India,New Delhi, Pizza Hut, the world’s largest pizza chain, is set to add 100 outlets in India over the next 12 months as it seeks to counter competition from nimbler rivals.

Of the 100 outlets that Pizza Hut plans to add, 75% will be small-format delivery and dine-in outlets, as it seeks to compete with Domino’s, the country’s largest pizza chain, and more recent entrants such as PizzaExpress and California Pizza Kitchen.

“The way it’s seen internally right now, Pizza Hut will be the fastest growing brand for Yum!,” said Unnat Varma, general manager, Pizza Hut and Taco Bell (India), part of Kentucky-based Yum! Brands.

“Clearly, pizza is getting popular,” said Varma, who has spent two months managing the brand after the former head at the pizza chain Sanjiv Razdan quit the company in November last year.

“We are scaling up because we the see opportunity.” The move comes more than a year after parent Yum! Brands Inc. promised to invest $100 million in India, to scale fast food brands such as KFC and Taco Bell. Yum! manages 733 restaurants across India, with close to 400 Pizza Hut outlets in 80 cities.

Pizza Hut will open outlets in smaller cities through its franchise partners. Pizza consumption in India is pegged at Rs.700 crore annually across 1,300 outlets. Domino’s triumphed in India by popularizing the 30-minute doorstep delivery assurance. In December, India became Domino’s largest market outside the US, with close to 806 outlets across 170 cities. “They have (Domino’s) obviously set the reference point for smaller outlets, plus these outlets are more commercially viable,” said Varma, suggesting that Pizza Hut is trying to shrug off the image of a fine-dining restaurant in India as it seeks to service densely populated neighbourhoods through smaller format stores. “We’ve come to realize that the delivery format is what will work for us in this market,” he said.

The firm will scale the model through its franchise partners as it invests in marketing and new menu creation. To strengthen its operations, the chain recently outsourced delivery of food items to Delhi-based franchise partner RJ Corp. in December.



Related Post:

1. Pizza chain Sbarro to add 20 outlets in India

2. Hyderabad Biryani brand Paradise enters Bengaluru,eyes pan-India

3. Orkin establishes first Franchise in India

4. Amul planning to open 10,000 outlets in next five years

5. Tribhovandas Bhimji Zaveri Ltd announces franchising opportunity