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  • Papa John’s Plans Major Indian Comeback: 650 Outlets In Next Decade Despite Market Challenges

    Papa John’s Plans Major Indian Comeback: 650 Outlets In Next Decade Despite Market Challenges

    Papa John’s International, a leading American pizza chain, has announced its intentions to re-establish its presence in India by October. The company has set an ambitious goal of opening 650 outlets across the nation within the next 10 years, despite the challenging landscape in which fast-food businesses find it difficult to maintain sustained sales growth.

    Papa John’s, ranking third worldwide in terms of pizza delivery, withdrew from the Indian market in 2017 due to unsatisfactory performance. However, this move parallels that of its American competitor, Little Caesars. The latter made its debut in India earlier in the year, with a plan to inaugurate approximately 100 establishments by the end of the decade.

    Re-entering the Indian Market

    The first Papa John’s outlet in the country is set to open in the southern city of Bengaluru, according to Vish Narain, managing partner at Pulsar Capital. This Indian investment firm, in association with the UAE-based PJP Investments Group, will serve as the joint master franchisees of Papa John’s in India.

    The pizza giant announced its plans to return to this intricate market back in April 2023. This decision comes at a time when fast-food chains are dealing with declining sales in India. Urban consumers, who form the primary customer demographic, are scaling back on expenditures due to sluggish wage growth and the burden of rising competition.

    Devyani International, one of the two Pizza Hut franchisees in India, is responding to this trend by shutting down underperforming outlets. Simultaneously, Sapphire Foods India, a smaller operator, is exercising caution with their expansion strategies.

    The Competitive Landscape

    The hurdle of competition is not one to be taken lightly. Papa John’s will have to contend with Domino’s Pizza, which boasts over 2,200 Indian outlets, Pizza Hut with around 950 stores, and upscale chains such as Pizza Bakery and PizzaExpress.

    However, Pulsar Capital seems optimistic about India’s long-term potential, mirroring the stance of consumer-facing companies like Hindustan Unilever, the maker of Dove soap, and brewery giant Heineken. Both companies continue to invest in India, banking on its massive population of 1.4 billion.

    “The fast-food category is under-penetrated, so we are many years away from saturation,” said Narain.

    Papa John’s aims to modify its pizza to cater to local taste preferences while also offering its signature dishes. This strategy aligns with the practices of other fast-food competitors. For instance, KFC offers a paneer zinger burger, Domino’s serves a chicken tikka pie, and Subway has a potato-patty sandwich on its menu.

    Questions & Answers

    When is Papa John’s planning to re-enter the Indian market?
    Papa John’s plans to re-establish its presence in India by October.

    Which city will be home to the first new Papa John’s outlet in India?
    The first new Papa John’s outlet in India will be opened in the southern city of Bengaluru.

    What is the projected number of Papa John’s outlets in India over the next decade?
    The company aims to open 650 outlets in India over the next ten years.

  • Papa John’s opening 1,350 stores in China

    Papa John’s opening 1,350 stores in China

    The pizza chain plans to open over 1,350 stores in South China by 2040 in partnership with the Asian private equity firm FountainVest Partners, it said on Friday. The deal will increase Papa Johns’s current global count by 25%, and marks the largest franchisee development agreement in the pizza company’s history.

    Pizza companies have lately been expanding their footsteps in the region, where they see an opportunity to boost sales.

    Pizza Hut, for example, opened 103 new stores in China in the third quarter. And Domino’s (DPZ) CEO Ritch Allison said in October that “with each passing quarter, we become even more confident about the long-term growth potential for the Domino’s brand in China.” He noted that in the third quarter of 2021, Chinese locations open at least a year grew sales by a percentage in the double-digits — way better than in the United States, where sales fell in the third quarter.

    Late last year, Papa Johns CEO Rob Lynch pointed to China as fertile ground for growth for his company, as well.

    Papa Johns has a “huge development opportunity in markets where we already compete but are much less penetrated,” compared to the competitors, Lynch said at the time. “I would offer China as an example,”

    Papa Johns has also been expanding into other regions. In November, the company announced plans to open 60 restaurants in Kenya in Uganda in the coming years along with franchise partner Kitchen Express. Over the summer, it expanded its partnership with its largest franchise, Drake Food Service International, with plans to open 220 restaurants globally, including in the UK and Latin America, by 2025.

    The “partnership with FountainVest marks another major milestone in achieving Papa Johns’s global growth potential,” Lynch said in a statement on Friday.

    The move follows a rebrand undertaken by Papa Johns last year when the company dropped the apostrophe in “Johns” and updated its log and store designs.

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  • Papa John’s launches in Cambodia

    Papa John’s launches in Cambodia

    US pizza chain Papa John’s is launching in Cambodia with 15 restaurants scheduled to open during the next three years. The company opened its flagship store in Phnom Penh last month.

    “Papa John’s Cambodia team is truly passionate about pizza,” said Peter Xu, Papa John’s Cambodia franchisee.

    “With our ‘Better ingredients – Better pizza’ promise, we look forward to providing local pizza lovers with quality products and outstanding services.”

    Xu also owns a Papa John’s franchise in New York and other business ventures in Cambodia.

    Jack Swaysland, Papa John’s COO, international, said that following a record year of sales and growth, Papa John’s is well-positioned to accelerate international development, a key pillar for the brand’s long-term growth.

    Papa John’s has restaurants in 48 countries, with the latest new openings in France, Spain, Tunisia, Iraq, the Netherlands, Morocco, Kazakhstan, Kyrgyzstan, Poland, the Bahamas, Pakistan, and Portugal. The company is eyeing expansion in Brazil, Japan, and Southeast Asia.

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  • US’s Papa John to try Central Asian market

    US’s Papa John to try Central Asian market

    US pizza giant Papa John’s International has continued its Central Asian expansion, opening its first restaurant in Kazakhstan.

    The Kazakhstan Papa John’s is located in the capital city of Almaty and opened its doors this week. Papa John’s is now in 46 countries and territories around the globe.

    Master franchisee PJ Western plans to open 16 Kazakhstan Papa John’s restaurants. PJ Western currently operates 181 Papa John’s in Russia, Belarus, Kyrgyzstan and Poland, and will continue to expand in Eastern Europe and into Central Asia. A second restaurant in Almaty is scheduled to open in October.

    “We believe that our passion for better ingredients will transfer well to Almaty and beyond and our new customers will love our quality pizza,” said Christopher Wynne, co-owner and CEO of PJ Western.

    The company is Papa John’s largest international franchisee with more than 180 restaurants.

    Papa John’s International is looking for potential franchisees in Paris, Belgium and Denmark.

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