Domino's Pizza in India adopts shrinkflation strategy, offering a ₹49 pizza by reducing size and ingredients amid rising inflation. The CEO of Domino's franchisee explains the move to maintain market share and combat historically high inflation.

This move indicates a shrinkflation where prices are kept low by reducing pizza size.

Domino "re-engineered" its flagship inflation-buster at Rs 49 pizza this February. It accomplished this by lowering the price - and tomatoes - from its previous cheapest offering of Rs 59. 

According to the CEO of Domino's franchisee in India, the Rs 49 pizza represents the tip of the spear in the company's fight against excessive inflation, which is squeezing profitability and pricing out many customers

CEO of its franchise stated that you are coming to the store or opening the app because there is a 49-rupee callout. He further mentioned that the global team of Domino's supported their plans as customers will be eating less because the prices are going to eat out less because prices are rising everywhere, their existing customers should not switch to a competitor.

The corporations are attempting to maintain market share won during three decades of rapid expansion in a country important to their futures - and one where competing with a street-food culture and a hot samosa for as little as 10 rupees is difficult.

Khetarpal, whose Jubilant FoodWorks operates the country's 1,816 Domino's locations, says he organizes a staff meeting first thing every Monday to develop new methods to manage expenses and combat the "historically high inflation" that contributed to the company's profits falling 70% in the first three months of 2023.

Jubilant, whose Domino's company accounted for the majority of its $635 million in revenue last year, also hopes to win rent refunds from some store landlords by making advance payments, according to Khetarpal, who declined to elaborate on the cost benefits.

Also, Read Arshad Khan popularly known as ‘The Blue-Eyed Chaiwala’, now owns a cafe in London.


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