Delivering Pizza with two different business model 🍕
A Comparative Study between Domino's and Pizza Hut in India
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To many Indians, Pizza is simply Domino’s 🧀
Everyone is pivoting towards online food orders. It is estimated that India's food delivery market will be $21.41 billion by 2026 (growing with a CAGR of 28.94%). When we say online food delivery, Pizza takes a hefty share of it. 27% of the orders online were Pizzas in 2021. The top pizza chains which dominate the process are Domino's, Pizza Hut, The Oven Story, La-Pino'z Pizza, Laziz Pizza, and the Pizza Express. Domino's has around 1300+ stores while Pizza Hut has 500+ stores across the country. Both global pizza chains entered India in 1996, but Domino’s store count is 2.5X that of Pizza Hut. And by revenue, Domino’s is 5X bigger.
To many Indians, pizza is simply Domino’s.
Domino's is solely owned by Jubilant FoodWorks Limited. A Company based in Noida (also holds franchises of Popeyes and Dunkin Donuts in India) whereas Pizza hut is owned by Devyani International and Sapphire Foods in India under Yum! Brands Inc. Unlike Domino’s single-franchisee model, Pizza Hut had some six franchisees jostling for space. Domino’s doesn’t have a team in India, unlike Yum!, giving Jubilant a free hand. “Domino’s is a non-entity when it comes to operations. It’s just Jubilant,” says a senior executive from Yum!. “But Yum!, Devyani, and Sapphire all need to be aligned on Pizza Hut.”
Both the companies came in 1996 with a vision to build a strong chain in India. Domino's majorly focussed on more number of outlets, takeaways, and delivery-based models. Pizza Hut is/was more about a proper dine-in restaurant (they use to serve with proper cutlery, pleasant vibe, more room for everyone, relatively large outlets, and at expensive places). Domino’s stores generally measure around 1,400-1,600 sq ft compared to over 2,000 sq ft-sized stores of Pizza Hut.
But But But…
Things have changed in recent times. Online food delivery came in 2010 and people started ordering food more often. Pizza is on everyone's screen (talked above). Now for Pizza Hut, they have to compensate the maintenance cost of outlets more from online orders only. Hence making their pricing model a bit expensive.
Pizza Hut Delivery (PHD, lol) came in the year 2008 in Bengaluru covering 300 stores till 2015 (Too late but okay). They ended up confusing customers, People thought Pizza Hut was different from PHD when they had the same menu. (Didn't worked well).
Thanks to COVID-19 for making things more difficult for Pizza Hut's business model. Pizza Hut has added only 25 stores in the last two years.
But Wait 🌴
Pizza Hut has decided to shed its image as a dine-in and shrink its outlets, maybe collaborating with Zomato soon.
Until then!!
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