Jubilant FoodWorks, India’s largest quick service restaurant (QSR) operator and the master franchisee of Domino’s Pizza, has maintained its retail prices for an unprecedented 15 straight quarters, despite mounting input costs and inflation. The company is instead relying on deep internal cost-cutting measures to protect market share and sustain customer loyalty.
“We run a structured cost-control program that touches everything — from rider efficiency to manpower productivity and rental renegotiations,” said Sameer Khetarpal, Managing Director and CEO of Jubilant FoodWorks. “But we have made a conscious call to not pass on inflation to consumers.”
To trim expenses and reduce dependence on imports, Jubilant has localized its sourcing of key ingredients. Corn, once imported from the U.S., is now procured domestically, and the company has initiated partnerships with Indian farmers to locally source tomatoes as well.
Khetarpal noted that this decision, combined with continued free delivery, has eaten into margins. “Free delivery alone took a 10% hit on margins. If you factor in 4% inflation annually over this period, we’ve absorbed nearly a 20% cost increase without increasing consumer prices.”
This pricing restraint comes at a time when India’s fast-food landscape is increasingly competitive and consumer spending remains cautious. QSR rivals are also rolling out aggressive discounts, value meals, and affordable menu innovations to attract footfall and app orders.
While Domino’s continues to dominate India’s pizza segment, selling nearly half a million pizzas daily, it faces stiff competition in other categories. “We’re not stopping with pizza,” Khetarpal added. “The out-of-home chicken market is massive, and we see great potential for Popeyes, which has already expanded to 20 South Indian cities.”
Jubilant’s approach highlights a growing trend in India’s food service sector, where price sensitivity among consumers is leading large players to rethink value delivery over price escalation — a strategy likely to shape the QSR battle ahead.