Bharat News and Analysis Deep Insights
For three decades, multinational corporations have been trying to make pizza and burgers the go-to fast food in India. However, the diversity of Indian culinary traditions has prevented these efforts from fully succeeding. Recently, Domino’s India introduced a 49-rupee ($0.60) pizza, claiming it as the world’s cheapest pizza. The justification? Rising inflation has left Indian customers with limited disposable income. But is this claim entirely true?
By Sanjeev Oak
The Inflation Argument
According to a Reuters report, Domino’s claims that soaring inflation in India has left its 1.4 billion population unable to afford pizza, prompting the introduction of an affordable 7-inch pizza tailored specifically for Indian consumers. The report compares global pizza prices, noting that Shanghai’s cheapest savory pizza costs $3.80, while San Francisco’s starts at $12. This narrative paints a grim picture of affordability in India, where inflation was 6.91% in March—lower than the 8.5% in the United States during the same period.
In reality, India is one of the fastest-growing economies in the world, with a growth rate exceeding 6%, even as global economies hover around 1%. This raises the question: Is the affordability argument just a convenient excuse for Domino’s strategy?
The Indian Fast-Food Market
India’s fast-food industry is growing at a compound annual rate of 7.5%, projected to rise from $30.5 billion in 2023 to $45.5 billion by 2028. This growth is fueled by an expanding middle class, urbanization, and the increasing adoption of online food delivery platforms. Despite these factors, global fast-food giants like Domino’s, Pizza Hut, and Burger King face stiff competition from India’s rich culinary traditions.
Why Pizza and Burgers Struggle in India
Indian cuisine, with its emphasis on fresh, diverse, and nutritious meals, poses a significant challenge to processed foods like pizza and burgers. Traditional thalis, which offer a balanced combination of rice, lentils, vegetables, bread, chutneys, and desserts, remain the preferred choice for many. Moreover, local street food options such as vada pav, samosas, and bhel puri are not only affordable but also deeply ingrained in the culture.
Domino’s operates around 20,000 outlets in India, yet its expansion strategy often fails to consider local tastes, pricing, and competition. To cut losses, the company has even removed inner box lids to save $0.006 per pizza. Meanwhile, rivals like Pizza Hut offer pizzas starting at 79 rupees, and McDonald’s has slashed prices to stay competitive.
A Glimpse at the Numbers
India’s fast-food market remains a small fraction of the $341 billion U.S. market. Currently valued at $5 billion, it is expected to grow to $15 billion by 2027. In contrast, Punjabi cuisine has firmly established itself across the country, with dishes generating $10.5 billion in revenue in 2023, projected to reach $15.5 billion by 2028.
Biryani, however, reigns supreme as India’s favorite dish. According to a leading online food delivery service, Indians ordered a staggering 76 million biryanis in the past year, with Kolkata, Malabar, and Hyderabad dum biryanis leading the charts. Bengaluru topped the list with 24,000 restaurants serving biryani, followed by Mumbai with 22,000.
The Bottom Line
While multinational fast-food chains continue to experiment with pricing and promotions, they struggle to replicate the cultural resonance of Indian cuisine. Domino’s narrative of inflation-driven affordability comes across as a tactical move rather than a genuine acknowledgment of economic realities. Indian culinary diversity, deeply rooted in tradition and variety, has proven resilient against the encroachment of foreign food trends.
Promoting affordable options is fair, but leveraging narratives of economic hardship to drive sales may not sit well with Indian consumers, whose love for their cuisine remains steadfast.
