The world’s cheapest Domino’s pizza is in inflation-hit India. It costs $0.60

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.

Domino’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 U.S. 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.

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.

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.

McDonald’s launched half-price meals in June. 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. He said the meals would bring in more customers and boost sales and margins.

The 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.

Domino’s flagship inflation-buster is the 49-rupee pizza, which was launched in February. Khetarpal said it was “re-engineered” by cutting price – and tomatoes – from its earlier cheapest offering of 59 rupees.

Franchisee Jubilant said in May it witnessed a cheese price surge of 40% during 2022-23, and a 30% rise in chicken and paper boxes. There have been more shocks in recent weeks, with tomato prices rising over 400% to record highs and households toiling under rising rates of everything from milk to cereals and spices, according to official data.

The industry players described a tale of two consumers in a country with yawning gaps between rich and poor.

Many low and middle-income earners who saw dining at foreign chains as a lifestyle upgrade when the economy boomed are tightening belts as inflation bites, while the wealthier continue to spend on products like pricier smartphones, and SUV cars whose sales are touching new highs.

When Khetarpal visited Domino’s stores in Chennai and other cities, he said he saw customers emptying out their pockets and only being able to scrape together 49 rupees. By contrast, he added, Domino’s new gourmet pizzas priced as high as $14 had seen a sales jump in some affluent areas.