8/31/2023 0 Comments Dominos delivery feeThe budget products are indeed being accompanied by a digital and physical marketing blitz across the nation - with stores, and even a posh New Delhi mall, plastered with banners, according to Reuters visits to stores across four Indian states.ĭomino's flagship inflation-buster is the 49-rupee pizza, which was launched in February. He said the meals would bring in more customers and boost sales and margins. They'll be the focus of promotion efforts in coming weeks, according to Akshay Jatia, executive director at Westlife Foodworld, which runs 357 outlets in western and southern India. McDonald's launched half-price meals in June. Merrill Pereyra, managing director of Pizza Hut in the Indian subcontinent, said the chain was developing products that "make the brand relevant and easy to access" for price conscious consumers in India, adding its budget pizzas were a hit with young people. Pizza Hut is aggressively promoting pizzas starting at 79 rupees ($0.96) that it launched last year and its India franchisee, Sapphire Foods, said it was the brand's lowest-priced globally. Jubilant - whose Domino's business accounted for most of its $635 million in revenues last year - also aims to secure rent rebates from some store landlords by offering upfront payments, Khetarpal said, declining to give further details about cost benefits.Īlso Read: Jubilant FoodWorks to invest Rs 750 crore capex in FY23 to open 220 Domino's Pizza outlets, 35 Popeyes restaurants CUSTOMERS EMPTY POCKETSĭomino's is not alone in zeroing in on prices in India, a highly price-sensitive market that is currently facing higher inflation than many other markets including the US The hope is that low-price offers will draw people to stores and apps who might order more add-ons or upgrade, the executives said. He said that amounts to a significant saving in packaging costs because 37% of Domino's Indian business is dine-in. He gave new details of Domino's India pivot and its financial gains his company has removed lids from all boxes of pizzas sold at stores starting December, saving 0.6 cents each time. Khetarpal, whose Jubilant FoodWorks runs Domino's 1,816 outlets in the country, says he holds a staff meeting first thing every Monday to brainstorm new ways to manage costs and fight the "historic high inflation" that contributed to its profits sliding 70% in the first three months of 2023. The more pizza you order, the more reduced the delivery fee is.The companies are striving to hold onto market share gained over three decades of rapid growth in a nation critical to their futures - and one where it's tough to compete with a street-food culture and a sizzling samosa for as little as 10 rupees. There is still a public holiday and Sunday surcharge, as well as a late night surcharge and extra money to ensure the pizza/s arrives within a 15 or 20 minute window. The pizza giant’s delivery pricing has now reverted back to what it was prior to the additional service fee. “We have made the decision to remove this fee because we want more customers to be able to enjoy the convenience of delivery, and we hope this change goes a long way to making that possible.” “At the end of the day, what is a win for our customers is a win for our franchisees – as the best way for our stores to grow profits is by serving more customers. “However, we know that our customers are feeling the pinch too – with interest rates, rents and household bills going up and up. “We introduced this fee because we felt it was the best option at the time to protect the livelihoods of our franchisees, who are small business owners in their local communities,” Mr Kilimnik said. Overall, in recent years its shares have plummeted after reaching a peak at more than $160 in September 2021 amid the post-Covid boom before slumping to around $72 in the past year. Its share price plunged by 23.8 per cent in late February off the back of the revelation. The news comes as just several months earlier, Domino’s Pizza was caught in the throes of a share price bloodbath as the company revealed the cost of living crisis was causing customers to cut back on buying pizzas and repeat orders dropped after it lifted prices. In July last year, reported the service fee added an extra $1.80 to an average $30 pizza delivery purchase.Īt the time, Domino’s blamed passing the price increase onto customers on the “rising cost of fuel, food and utilities, and (to) ensure we can continue to train and retain our team members”.īut on Tuesday, the pizza chain announced it was canning the service fee, calling the move a “win” for customers as inflation runs rampant. The popular fast food giant has scrapped its so-called ‘Delivery Service Fee’, less than a year after introducing it amid Australia’s cost of living crisis. Domino’s Pizza has backflipped on a controversial policy that lumped customers with an extra seven per cent fee if they ordered a delivery.
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