Pizza Hut, a leading quick-service restaurant chain, has experienced significant growth in India over the past two years, doubling its store count to over 820. The company plans to continue its aggressive expansion, with a focus on emerging smaller markets where the growing middle class and Gen Z consumers present promising opportunities.
Pizza Hut’s expansion strategy includes targeting Tier II and III cities, which currently contribute 50% of its business in India. These markets hold immense potential for growth, and the company aims to harness it further. In the first quarter of 2023, Pizza Hut India Subcontinent achieved a notable 16% System Sales Growth.
The company is committed to sustained growth and does not plan to slow down anytime soon. Despite already being present in India for 25 years, they see ample room for expansion.
Pizza Hut recognizes the untapped potential in the Tier II and Tier III markets and is focused on reaching young consumers in these regions. With 50% of its stores strategically located in emerging markets, the brand aims to capitalize on the growth opportunities presented by this segment.
While currently, 50% of the business comes from delivery, the rest comes from dining and takeaway. The quick-service restaurant industry in India is poised for growth, with a projected CAGR of 11.9% in the next five years, and the market is estimated to be around USD 80 billion.
The company believes that there is significant growth potential in India, driven by the rising buying power of the middle class. Pizza Hut operates its stores in India through its franchise partners, Devyani International Ltd. and Sapphire Foods, and has maintained a strong relationship with them.
To cater to Indian taste preferences, Pizza Hut has introduced new pizza flavours like Mazedar Makhni Paneer, Dhabe Da Keema, and Nawabi Murg Makhni. They also offer the Chicken Seekh Kebab crust and the Momo Mia pizza, catering to the love of iconic Indian snacks.
Additionally, Pizza Hut has embraced digital commerce platforms, including the government-backed Open Network for Digital Commerce (ONDC), to enhance customer reach and accessibility.
As part of Yum! Brands Inc., based in Kentucky, USA, Pizza Hut continues to be a significant player in the quick-service restaurant industry, along with other popular brands like KFC and Taco Bell. The company is optimistic about the potential for growth and success in the Indian market, driven by its commitment to expansion and catering to local tastes.