U.S. pizza chain Papa John's targets 2025 India re-entry after delay
03/01/2025 11:34
*
Papa John's plans to open outlets in India this year
*
Had aimed for 2024 re-entry
*
India is a complex market - Papa John's
*
Some players rethinking India expansion plans
By Praveen Paramasivam
Jan 3 (Reuters) - U.S. pizza chain Papa John's
International PZZA.O plans to make its return to the Indian
market in 2025, a year later than planned, while many Western
brands rethink their plans as inflation hits consumer spending.
Papa John's exited India in 2017 saying its restaurants were
not able to meet the expectations of the brand and the
franchisee.
In the meantime rivals Domino's Pizza DPZ.O and Pizza Hut
YUM.N have become popular as Indians increasingly opt for
international cuisine.
India "remains a priority" and the company will open its
first restaurants this year, a spokesperson for Papa John's said
by email.
Under plans outlined in 2023, the company aimed to scale up
to 650 outlets over a decade.
"India is a complex market with unique consumer preferences.
We are taking the necessary time to ensure our franchise partner
opens with the right products and menu, technology, and
restaurant footprint to ensure their long-term success," the
company said.
Inflation is also squeezing middle class budgets, prompting
some players to slow expansion plans.
India's Tata Consumer Products TACN.NS , which operates
Starbucks stores under a joint venture, is pushing back plans
for some new outlets until later in its schedule.
Consumer analysts in India still believe in the longer-term
prospects for Western fast-food brands in the country noting its
growing eating-out culture and urbanisation of smaller towns.
Papa John's has more than 5,900 locations in about 50
countries and territories, according to its website.
(Reporting by Praveen Paramasivam in Chennai; editing by Aditya
Kalra and Jason Neely)
((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))