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  4. With ‘PizzaBurger’, Domino’s steps into India’s burger segment. Will the gamble pay off?

With ‘PizzaBurger’, Domino’s steps into India’s burger segment. Will the gamble pay off?

Starting at Rs 89, the ‘BurgerPizza’ range is available in two vegetarian and two non-vegetarian variants at the 100-plus Domino's Pizza restaurants across India

India TV Business Desk India TV Business Desk Published on: July 13, 2016 13:27 IST
With ‘PizzaBurger’, Domino’s steps into India’s
With ‘PizzaBurger’, Domino’s steps into India’s burger segment

New Delhi: At a time when the pizza market in India stagnating and very few new entrants making a foray, Domino’s, sensing a market opportunity, has now made an attempt to enter into the relatively better market of burgers with a new offering. 

Starting at Rs 89, the ‘BurgerPizza’ range is available in two vegetarian and two non-vegetarian variants at the 100-plus Domino's Pizza restaurants across India, said Jubilant FoodWorks,  the master franchise for Domino’s Pizza in India, an ET report said quoting company officials.

The BurgerPizza is also available for ordering on the Domino's online ordering website and the Domino's Pizza mobile app, the company said.

The new offering gains significance in view of several global burger brands entering India’s quick service restaurant (QSR) market. On the contrary, the pizza segment is facing a steep downfall. According to reports, with burgers surpassing the pizza segment in India, Jubilant FoodWorks’ net profit fell 6.5 per cent to Rs 29.47 crore on 14 per cent rise in net sales to Rs 617.84 crore in Q4 March 2016 over Q4 March 2015. 

With the new product, Domino’s is looking to increase its share in the 'all day, individual consumption' occasion. What it also has in its view is a growth in its share of the chained Indian Food Service Industry that is pegged to grow three-fold to Rs 25,000 crore within five years. 

The company is pinning its hopes to increase its market through this new food item. According to a recent Euromonitor consumer food service report, the branded food service industry, which was Rs 20,000-crore market in 2015 in India is expected to touch Rs 53,000 crore by 2020. In terms of quick service restaurant (QSR) market share, burgers occupy 29.9 per cent whereas pizzas slice up 26.7 per cent. 

And the move could be rewarding, or so the market trends suggest. Soon after the company announced the launch of BurgerPizza for Indian market, Jubilant FoodWorks, which holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka and Bangladesh, was up by 0.31 per cent to Rs 1.178.80 on BSE.  

Moreover, Domino’s’ foray into the burger segment could be a good bet. Here is why. 

While there is a marginal difference between burger and pizza, the market for the former is growing at a faster pace in the country. In the last two years, several global burger brands, including Burger King, Wendy’s, Carl’s Junior and Johny Rocket have opened stores in India. On the other hand, the pizza segment has been quite muted in terms of new players. 

Burgers seem to be surpassing the pizza segment even in terms of online food delivery companies. 

“They are one of the most popularly ordered items across all eight cities. Consumers order burgers throughout the day,” said Nandan Reddy, co-founder of Bengaluru-based online food delivery startup Swiggy, which has over 4,000 restaurants on its platform offering burgers.

The new BurgerPizza is an exciting innovation from Domino’s and is a result of company’s focus on growth in the Indian fast food market. 

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