India fastest growing market for Domino's

New Delhi: Despite a palpable slowdown in the eating out industry across the globe, India has emerged as the fastest growing market for Domino's, outpacing US, which is the largest market for the pizza chain major across 73 countries where it has presence. India recorded an annual growth rate of nearly 50% for Domino's for the fifth consecutive year.

"India has been performing fabulously for us. We are seeing some pressure in western Europe especially, where it has been a very tough economic year for us," Domino's executive vice president (international) Richard E Allison Jr said. India, which accounts for 5% of Domino's' global sales, is among the top five markets for the US-based company. In terms of store counts too, India has registered the highest growth among all other markets.

The brand added 75 stores in India in calendar year 2011 taking the total number to 500. It is planning to increase the number by 100 in the current financial year. The company, which currently competes with other food chains such as Pizza Hut and Papa John's, commands around 55% share of the Rs 1,800 crore pizza industry in the country.

With only 10-15% of the industry organized, Allison is optimistic on increasing its market share by increased accessibility to consumers. The company will invest over Rs 150 crore in India this financial year, up from the Rs 111 crore it had invested last year. Like most other companies in the quick service restaurant space, Domino's too reported a decline in the same store sales growth in the April to June quarter to 22.3% from 36.7% in the corresponding period last year.

With consumer spending getting more discretionary, the brand has pushed price hikes, which normally happen in the first quarter, to the second quarter of the current fiscal year.

The company is also focusing on value offerings in a bid to widen its consumer base in the country. "We have to think about the product pricing always. The game is all about value pricing. We are only focusing on increasing our market share in India."