Pizza enthusiasts, rejoice! Domino’s, a prominent pizza manufacturer and delivery company, has made a heartening announcement—it’s reducing the prices of its large pizzas to almost half.
This strategic price cut comes amid increasing competition in the pizza segment, driven by the rise of outlets like Tosin, GoPizza, Leo’s Pizzeria, Mojo Pizza, OvenStory, and La Pinoza.
Domino’s decision to significantly reduce large pizza prices is a response to market conditions and customer preferences.
Emerging Competition:
The price reduction by Domino’s Pizza mirrors the escalating competition in the FMCG (Fast-Moving Consumer Goods) sector.
Local companies have been increasingly challenging established brands and corporations, even outpacing them in certain markets.
Domino’s is now adopting a price-cutting strategy in the Quick Service Business (QSR) market in India to stay competitive.
According to reports, Domino’s conveyed its decision to reduce large pizza prices to customers on September 4.
New Pizza Prices:
As per the report, Domino’s Pizza has lowered the price of Large Veg Pizza from Rs 799 to Rs 499 and Large Non-Veg Pizza from Rs 919 to Rs 549.
This significant reduction in pizza prices makes it more affordable for customers than ever before.
Domino’s aims to position itself as a more affordable choice compared to smaller competitors.
Jubilant Foodworks, Domino’s parent company in India, refrained from providing detailed comments on the issue ahead of its quarterly results.
Due to intense competition in the Quick Service Business (QSR) sector, Jubilant recorded a 74 percent decline in net profit on a year-on-year basis, amounting to Rs 28.91 crore.
Price Reduction Trend Among Big Brands:
Big players like Domino’s, Burger King, Pizza Hut, and KFC have faced a decline in sales due to heightened competition.
In response, these major brands are adopting strategies to lower their prices.
For instance, Pizza Hut is targeting cities with populations exceeding 10 lakh and has reduced the price of its Flavor Fun from Rs 200 to Rs 79.
Currently, local players hold approximately 30 percent of India’s pizza market share, further intensifying the competition.
