Domino’s Delivers the World’s Cheapest Pizza: Just $0.60 in India

① The Cheapest Pizza in The World

Domino’s Pizza in India has launched a pizza for just $0.60. Domino’s introduced this affordable pizza to prevent customer loss due to inflation.

As prices continue to climb, more Indians are turning to budget-friendly street food for their daily meals. India boasts a vibrant street food culture, where you can enjoy a meal for as little as $0.13. The affordability of street food in India is such that it has become a popular choice for many when it comes to dining out.

Domino’s Pizza failed to attract customers with its prices, which were high compared to street food. In fact, due to India’s inflation, Domino’s Pizza’s first-quarter earnings this year decreased by 70% compared to the same period last year.

Domino’s Pizza had already sold a pizza for about $0.75. However, this was not enough to attract customers, and sensing a crisis, Domino’s launched a “49 Rupee Pizza” in February. Sameer Khetarpal, CEO of Domino’s Pizza India, said, “As prices rise, customers are eating out less,” and “We are giving up some of our profits to prevent customer loss.” He described the ’49 Rupee Pizza’ as a “survival tactic.”

Domino’s Pizza India is the second-largest branch of the company, following the United States. Given India’s massive population of 1.4 billion, the fast-food market in the country presents a wealth of untapped opportunities. According to Euromonitor International, the value of India’s fast-food market currently stands at $5 billion. While this figure pales in comparison to the U.S. ($341 billion) and China ($137 billion), it’s worth noting that India’s fast-food market is projected to experience an impressive annual growth rate of 15% until 2027.

Domino’s Pizza India has significantly lowered its prices to maintain its market share. Competitors like Pizza Hut and Burger King in India also discount events.

② Cheap, But Not Tasty

To sell a pizza for $0.60, Domino’s Pizza has made various cost-cutting efforts. This was an inevitable choice to sell cheap pizzas. Since last December, they have provided lidless boxes to customers, taking away their orders. They save about $0.06 per pizza with lidless boxes. This has been a big help in cost-cutting, as 63% of their customers are takeaway customers.

As the price of ingredients rose, they also started reducing the quantity. With the cost of cheese increasing by 40% compared to last year, they reduced the amount of cheese and tomatoes. The price of chicken and paper boxes increased by 30%. Monsoon floods led to crop damage, causing vegetable prices to rise by over 400% in a few weeks.

Domino’s Pizza started reducing taste and service in exchange for launching cheap products. A large pizza at Domino’s ranges from about $5 to $8.40. Even considering the size, there is a significant price difference with the $0.60 product. The 49 Rupee Pizza is about the size of an adult man’s palm, approximately 18cm (about 7 inches), with few toppings, making it a pizza for one person.

So, what do customers who have tasted the 49 Rupee product have to say? Local Indians left reviews like, “I can’t taste the cheese at all,” “All the pizzas tasted like I was eating tomato ketchup pizza,” “I added cheese to taste it, but it didn’t taste,” “They give a lot of sauce instead of cheese,” and “Now raise the quality of that taste.”

③ Competitors Also Launch Cheap Menus

Upon introducing the 49 Rupee Pizza by Domino’s Pizza India, Pizza Hut, sensing the competitive pressure, responded by rolling out an affordable menu option. Pizza Hut unveiled a pizza priced at 79 Rupees (approximately $1). Since its launch, Pizza Hut has been vigorously promoting the 79 Rupee Pizza, marketing it as the most economical price point offered at any Pizza Hut location worldwide.

Amid the ongoing price battle within the fast-food industry, McDonald’s has joined the fray by initiating a “Buy 2 Get 1 Free” promotion for their burgers. Additionally, they’ve unveiled a half-price meal event, highlighted as the centerpiece of their promotional efforts for the upcoming weeks. McDonald’s aims to attract a larger customer base through these cost-effective promotions to boost sales and profits.

The sales of fast-food restaurants in India have fallen sharply due to inflation. The pre-tax profit of Sapphire Foods, the owner of Pizza Hut, decreased by more than half in the March quarter. Restaurant Brands Asia, the Indian franchise of Burger King, saw a 9% increase in net loss.

By. Min Jae Kim