ICC Cricket World Cup 2023: Domino's, Pizza Hut Slash Prices To Tap Frenzy

Domino's Pizza and Pizza Hut have slashed prices and are offering more budget-friendly options to tap ICC Cricket World Cup 2023 frenzy and spur the still-fragile demand.

Domino's cut prices by up to 50%, primarily across its large pizza range, ahead of the quadrennial event that coincides with the festival season this year. Its vegetarian pizzas are now priced for just Rs 499, down from the previous price of Rs 799. The large non-vegetarian pizzas will see a much sharper drop to Rs 549 from Rs 919.

While Domino's said the "promotional offers are part of business as usual", the massive price cuts are seen as a move to fend off intense competition from smaller rivals. Laziz Pizza, Chicago Pizza, La Pino'z and Leo's are among smaller, regional artisanal pizza brands that are winning over customers.

"The pizza category has been facing increased competition from newer players. Nearly, every second restaurant offering online is a pizza brand," Nuvama Institutional Equities said in an Oct. 3 note, citing its recent chat with Sanjay Purohit, group chief executive officer, Sapphire Foods, the operator of Pizza Hut, KFC and Taco Bell. Gujarat, according to the brokerage, remains one of the most competitive in the country.

Pizza Hut is also increasing marketing spends to improve brand visibility and awareness. The chain has rolled out lunch-time deals, bundling in a personal pizza with Coke for Rs 600. It also has a Super Value deal promising customers two personal pizzas for a discount of up to 45%.

According to Sapphire, the Flavour Fun range of pizzas that starts at Rs 79 has been successful in increasing footfalls and acquiring customers. Contrary to the perception, Flavour Fun has not cannibalised existing sale.

Analysts said demand across quick service restaurant chains remained subdued in the second quarter. "Post the month of ‘Shravan’--when consumption of non-veg food reduces in some regions--which ended on Aug. 31, there has been no sign of strong resumption of demand versus the healthy trends seen last year," said Nirmal Bang in a recent report.

"However, there is hope that the third quarter being a seasonally strong quarter is expected to do well on the back of the festive season and the Cricket World Cup," it said. Given the slowdown in consumption post Diwali last year, the base is also favourable compared to the preceding quarters, it said.