Yum!, the world’s largest restaurant company that owns chains like Pizza Hut, KFC and Taco Bell in India, is doling out more food at existing prices to woo consumers in these times of economic slowdown.
Betting big on its pizza chain, Yum! has also reduced the entry-level price of its pizzas to just Rs44.
Sanjiv Razdan (pictured, inset), brand GM, Pizza Hut Delivery India, said that in challenging times like these, when consumers’ spending has reduced and discretionary expenses are being shelved, the company has had to change its gameplan accordingly.
“We have focused on gateway innovation products that can persuade several consumers to try them. This means, people who were probably not eating pizzas before, might try them now,” said Razdan.
One such innovation is the pizza slices at Rs44. “With this introduction, we have seen volumes increase by 50%. Lots of consumers were first-time pizza-eaters.”
Yum! has also increased its promotional and discount offers. For instance, a three-course meal is now available for Rs99. Earlier, this was a limited period offer; now, it has been extended to encourage consumer footfalls.
Yum! has also stepped up its expansion. This year, it is looking to add 150 stores across its three formats – Pizza Hut, KFC and Taco Bell. And by 2015, the company wants to have 1,000 stores in India across its three formats.
Razdan said Yum! remains bullish on India as it is one of the fastest-growing markets for the NYSE-listed company. “India is not a big contributor in terms of revenue yet; but, it is in the top five fastest-growing markets for Yum!.”
Pizza Hut has also upped the ante against its competitor Domino’s by rapidly expanding its delivery chains. Razdan acknowledges that Pizza Hut has been a late entrant in the delivery segment. So, in order to bridge the gap with its competitor, it has segregated the dine-in and the delivery businesses.
This has allowed Yum! to focus on consumer and business needs separately, said Razdan.
In order to boost sales via online and mobile phone channels, Pizza Hut has been offering special discounts and customised offers. It is also planning to introduce two new items in the menu in the next two months. Also, consumers can expect more value offers going ahead, said Razdan.