Pizza Hut to continue aggressive expansion spree: Merrill Pereyra

Leading quick-service restaurant chain Pizza Hut, which has doubled its store count in the country to more than 820 stores in the past two years, will continue its “strong expansion spree” with a significant commitment to expanding its presence in smaller emerging markets. Company official.

Merrill Pereira, managing director of Pizza Hut India in the Indian subcontinent, said the company is focused on Generation Z and the growing middle class, which is moving up the consumption ladder as purchasing power increases.

As part of the expansion, Pizza Hut is focusing on emerging Tier 2 and 3 markets, which now contribute 50 percent of its business in India and aims to further harness the potential found here.

In the first quarter ended March 31, 2023, Pizza Hut India Subcontinent posted 16 percent order sales growth.

“In the past two years, we’ve doubled our holdings. We’ve gone from 417 restaurants to 820. We plan to continue this expansion. We believe in the country,” Pereira told PTI.

Although he did not share projected numbers of restaurants, he said, “We’ve been here for 25 years and we want to keep growing. We’re going to keep growing and there’s no reason to slow down.”

In 2022, Pizza Hut India achieved strong system sales growth of 47 percent – the highest among all Pizza Hut subsidiaries globally.

Pereira said in Asia (without China), there is 1 Pizza Hut for every 3 people but in India, that average is 3 million.

“It shows how much we can penetrate here. It shows the opportunity for how much this market can grow,” he said.

Pereira said he sees “enormous potential” in expanding in India to reach young consumers in “untapped” second and third tier markets.

“We have made a significant commitment to expand our presence in emerging markets… With the aim of further harnessing the potential that exists in these markets, 50 percent of our total stores have been opened strategically in these regions,” he said.

Currently, 50 percent of Pizza Hut’s business comes from delivery and the remainder from dine-in and takeaway.

While talking about the growth of the domestic QSR (Quick Service Restaurant), he said that he is poised to increase at a compound annual growth rate of 11.9 percent in the next five years, and the business will approach around US$80 billion.

“There is enough growth potential in India for a project like ours for more than 10 years. Middle class people are rising in purchasing power,” he added.

Pizza Hut through my franchise partner

Devyani International Ltd and Sapphire Foods operate a chain of 820 stores in India spread across 200 cities

“We’ve maintained a long-term relationship with our franchise partners, and they’ve done very well,” Pereira said.

Pizza Hut also makes room for a taste of India in its menu.

“We have recently launched new and exciting pizza flavors such as Mazedar Makhni Paneer, Dhabe Da Keema and Nawabi Murg Makhni to make our products more attractive to the Indian palate,” he said.

On top of that, the company introduced the crusty Chicken Seekh Kebab, acknowledging the love of Indians for this signature snack. “We even brought the epic Momo Mia pizza, which allows customers to enjoy the ultimate street food favorite,” he said.

Pizza Hut is also available on government-backed Open Network Digital Commerce (ONDC) platforms. According to Pereyra, it also helps them boost customer reach.

“India has a large youth population, which provides ample scope for all platforms and players to grow and thrive. In this light, we look at ONDC as another opportunity for us to enhance accessibility and reach out to consumers,” he said.

Pizza Hut is owned by Yum! Brands Inc, which also owns other QSR brands such as KFC and Taco Bell.