Tuesday, 02 January 2024 12:17 GMT

Looking For 'Pizza Near Me'? Papa John's Re-Enters Indian Market After GST Cut, Launches First 'Mostly Vegetarian' Menu


(MENAFN- Live Mint) Papa John's has identified India as a key global market and launched its first“mostly vegetarian” menu to suit Indian preferences. The US pizza chain left India in 2017 due to poor performance. Now, it has re-entered the Indian market with four stores in Bengaluru.

The focus is on vegetarian pizza because India has the world's highest number of vegetarians.

On October 10, Papa John's launched four dine-in restaurants in Bengaluru. The outlets are located in Indiranagar, Sarjapur Road, Electronic City and Hennur, each covering 1,600–2,000 sq. ft.

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The US-based pizza chain, America's third-largest, has priced its pizzas between ₹149 and ₹799. This positions it above rivals like Domino's, which offers pizzas starting at ₹49.

Papa John's also plans to open smaller 1,200 sq. ft. outlets, focusing on delivery and takeaway, in the next two years as it expands rapidly across Bengaluru.

Papa John's plans to expand to 650 outlets across India within 10 years. The company expects rising consumer spending, supported by recent tax cuts, to boost demand.

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From September 22, the GST on pizza bread in India has been reduced from 5% to 0%, meaning no tax is applied to the base or bread. However, toppings still attract 18% GST as they are classified differently.

Dining in restaurants incurs 5% GST on the total bill. Takeaway or delivery pizzas attract an 18% rate.

Papa John's future plans in India

According to Tapan Vaidya, Group CEO at UAE-based PJP Investments Group, the company plans to open three more restaurants in Bengaluru by the end of October. PJP, along with Pulsar Capital, is Papa John's joint master franchisee in India.

“We'll raise the number to 30 restaurants in two years before we expand to cities such as Chennai and Hyderabad. We'll move to the north thereafter,” Vaidya told the Financial Express.

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With over 6,000 stores worldwide, Papa John's is now investing heavily in technology. It will also focus on customer research and local adaptation strategies to ensure long-term growth in India. Papa John's will enter Hyderabad in 2027.

"India is one of our priority markets," International Papa John's CFO Ravi Thanawala told Reuters.

India will have "the greatest amount of management focus", he added. The other focus regions include China and the United Arab Emirates.

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