Jubilant Foodworks dismisses reports about slashing pizza rates
As per Elara Capital, a media report recently stated that JUBI reduced the price of its large pizzas by almost 50% with the aim of making its pizzas more accessible and competitive
Jubilant Foodworks has dismissed recent media reports of price cuts in the pizza category.
As per a report by Elara Capital, the company will need to push more promotional campaigns to derive the most benefits from the upcoming Cricket World Cup, as competition in the pizza space remains high and non-pizza food is at an advantage as aggregators scale up.
JUBI pizza’s current pricing remains at 25% cheaper than local and global peers, Elara said in a report.
A media report recently stated that JUBI reduced the price of its large pizzas by almost 50% with the aim to make its pizzas more accessible and competitive, especially in the face of emerging smaller rivals in India’s quick service restaurant (QSR) market. Management has clarified it has not cut prices of large pizzas. Although the company had run promotions and discounts on a select large pizzas on specified cricket match days and continues to run iteration of several promotions at different points in time, these promotions and discounts should not be considered as a price drop at the portfolio level. JUBI pricing at a sharp discount vs peers JUBI has priced its value offerings (Basic cheese pizza and Pizza mania) at INR 59, which is ~37% lower than price of value pizzas by peers, Pizza Hut, La Pinos and Chicago Pizza. In the medium segment too, the price of a Dominos pizza is ~26% cheaper than the average price of peers whereas in case of high-end pizzas, JUBI’s pizza is almost 14% cheaper than peers.
