Refile: Burger King says tomatoes on 'vacation' as India battles food inflation

Westlife Foodworld

16/08/2023 09:32

(Refiles to add dropped word 'the' in paragraph 1)
    By Manoj Kumar and Praveen Paramasivam
       NEW DELHI/CHENNAI, Aug 16 (Reuters) - Burger King has
scrapped tomatoes from its wraps and burgers in many Indian
outlets after prices more than quadrupled, the latest symptom of
surging food inflation that is hitting consumers hard across the
world's most populous nation.
    "Even tomatoes need a vacation ... we are unable to add
tomatoes to our food," read notices pasted at two Burger King
India outlets. The chain has cited quality issues in explaining
the shortfall. 
    The burger chain, one of India's biggest with nearly 400
outlets, joins many McDonald's and Subway stores that have
removed tomatoes from menus as India's food inflation this week
hit its highest since January 2020.
    The U.S. sandwich chain even cancelled the free cheese
slices it offered for years.
    Rival Domino's  DPZ.N , meanwhile, has tried bringing down
prices to appeal to struggling consumers with a $0.60 pizza -
its cheapest in the world.
    The tomato supply crisis has coincided with a surge in
prices by as much as 450% to record highs as monsoon rains
disrupted crop and supply chains - although they have since
eased.
    "Why are there no tomatoes in my burgers?" reads a question
on the support page of Burger King India's web site. The answer
states its Indian franchisee follows "very high standards of
quality" and tomatoes will be back soon.
    "We request your patience and understanding," it says.
    Restaurant Brands Asia  RESR.NS , which operates Burger King
in India, did not respond to requests for comment.
    The pain is spreading with July retail inflation data
released this week showing prices of vegetables rose 37% over a
year. The cost of staples from onions and peas to garlic and
ginger have all risen.
    "If the prices remain high, then eventually restaurants will
have to take price increases," said Amnish Aggarwal, head of
research at India's Prabhudas Lilladher. "There is no other
alternative."
    As well as placing pressure on the margins of foreign chains
operating in India's nearly $5 billion market for fast-food
restaurants, the price shocks pose a challenge for Prime
Minister Narendra Modi's government ahead of a national election
next year.
    To manage the supply crisis, India has started tomato
imports from Nepal, and has organised vans to distribute the
staple at cheaper rates across the nation, with social media
posts showing huge queues. 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Subway India takes away free cheese slice, offers sauce as
inflation bites     ID:nL4N39S0X6 
Tomato price shock hits Indian restaurants, cheaper puree sales
boom     ID:nL4N39B35C 
FOCUS-The world's cheapest Domino's pizza is in inflation-hit
India. It costs $0.60     ID:nL4N38R2H0 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Manoj Kumar in New Delhi and Praveen Paramasivam
in Chennai; Editing by Aditya Kalra and Conor Humphries)
 ((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))