Calories per rupee: Why pizza is a winner in India’s fast-food race

Core Insights - Fast-food chains in India are struggling to maintain consumer interest, with pizza emerging as a potential solution due to its value proposition [1][2] - Consumers are increasingly evaluating food options based on "calories per rupee," with pizza providing the best value compared to other fast-food options [2][8] - The pizza segment in India's quick-service restaurant (QSR) market is projected to grow from 20% in FY24 to 25% by FY30, reaching a market size of $7 billion [3][8] Market Dynamics - The average cost for a meal at a pizza chain is ₹525, which is significantly lower than the 16-126% higher spending required for other cuisines [2] - Fast-food chains have been pricing themselves out of the middle-class market, with average order values at organized outlets ranging from ₹400-500, compared to ₹118 at local eateries [4][5] - The growth of India's middle class, expected to rise from 432 million in 2020-21 to 715 million by 2030-31, presents a significant opportunity for affordable dining options like pizza [6] Competitive Landscape - Domino's has successfully scaled its operations due to its delivery model and a strong brand promise, while Pizza Hut has faced challenges in repositioning itself [7][10] - Jubilant FoodWorks, the largest pizza chain operator in India, reported a 17.1% year-on-year increase in sales, driven by a 20% growth in home delivery [9] - Rival operators like Devyani International and Sapphire Foods have faced difficulties, with Sapphire reporting a 6% decline in revenue from its Pizza Hut business [10][11] Consumer Preferences - Pizza is favored for its affordability, accessibility, and shareability, making it a top choice among QSR options [6][8] - The cultural significance of pizza as a symbol of social status may also contribute to its popularity, although biryani remains a staple favorite in India [14][15] Future Outlook - The pizza market is expected to capture the next wave of diners as India's middle class expands, positioning itself as a value-first option in the food services industry [6][8] - Despite the growth potential, the overall food services industry in India has only seen an 8% compound annual growth rate over the last decade, indicating affordability constraints [5]