Papa John’s International (NASDAQ:PZZA) is making India a top global priority as it re-enters the market with its first predominantly vegetarian menu, a move executives say is aimed at driving long-term expansion.
The U.S. pizza chain — the world’s third-largest delivery company — exited India in 2017 following weak performance. On Friday, it announced its comeback with four stores in Bengaluru and revealed plans to open 650 locations across the country over the next 10 years.
The relaunch aligns with expectations of a rebound in discretionary consumer spending, supported by recent tax cuts after several slow quarters for the fast-food industry.
“India is one of our priority markets,” CFO Ravi Thanawala told Reuters. He added that India, along with China and the United Arab Emirates, receives “the greatest amount of management focus.”
Papa John’s operates nearly 6,000 restaurants across about 50 countries and territories. The company is channeling significant time and resources into these priority markets to advance its technology strategy and consumer research efforts, with the goal of sustaining long-term growth.
In India, Papa John’s is partnering with Pulsar Capital and PJP Investments Group as joint master franchisees.
India is projected to become PJP’s largest market within six years, surpassing its store count in the UAE, Saudi Arabia, and Jordan, according to Tapan Vaidya, CEO of PJP Investments. The franchisee currently operates around 150 Papa John’s outlets across these Middle Eastern markets.
To cater to local preferences, Papa John’s will offer a menu with more vegetarian options than non-vegetarian ones for the first time in its history, Vaidya said. India has the world’s largest vegetarian population.
As part of its pricing strategy, Papa John’s is setting its entry-level margherita pizza at 149 rupees ($1.68), Vaidya added. By comparison, a margherita pizza from Domino’s Pizza starts at 109 rupees.
Papa John’s International stock price
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