US pizza chain Papa John's has revealed its strategy to re-enter the Indian food service market, targeting a launch this year.
The company's return comes after a one-year delay from the originally planned 2024 timeline, demonstrating a cautious approach in a domain led by rivals such as Pizza Hut and Domino's Pizza.
Papa John's is said to be gearing up for long-term growth while navigating the challenges of inflationary pressures on consumer spending.
The pizza chain had previously exited India in 2017 due to operational and branding challenges.
This time, Papa John's is engaging with Indian franchisees to leverage local expertise in supply chain management, real estate, and technology.
The aim of this partnership is to ensure that the new stores resonate with Indian tastes, a factor that was reported to be missing in its previous foray into the market.
With more than 5,900 locations globally, Papa John's considers India a critical market for its international expansion plans.
Unlike established markets where the focus may be on product innovation, emerging markets like India require a balance of localization, pricing and efficiency in operations, Indian restaurant reported.
The company's revised strategy includes a plan to expand up to 650 points of sale across the country during the next ten years.
However, the expansion will begin with a measured approach, initially targeting metro cities before extending to smaller towns, marking a departure from its rivals' aggressive rollouts.
In November 2024, Papa Johns Jenna Bromberg was appointed as its new chief marketing officer.
The pizza chain reported total revenue of $507.78m for the second quarter ending 30 June 2024, a decrease of 1.3% from $514.53m in the same period in 2023.
The decline was driven by lower revenue in its North American commission segment, primarily due to a mix of lower volume and commodity prices.
“Papa John's to re-enter the Indian food service market” was created and published by Food Service Verdictbrand owned by GlobalData.
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