Pizza Hut, a leading quick-service restaurant chain, is set to continue its aggressive expansion spree in India, with a particular focus on emerging smaller markets and the ‘Gen Z’ demographic. The company aims to tap into the growing middle class and their increased purchasing power. With the objective of further harnessing the potential that exists in Tier II and III cities, which already contribute 50% of its business in India, Pizza Hut plans to expand its presence in these markets. In the first quarter of 2023, Pizza Hut India subcontinent recorded a robust 16% growth in system sales.

Merrill Pereyra, Managing Director of Pizza Hut Indian Subcontinent, expressed the company’s commitment to expansion, stating, “We have doubled our estate in the last two years, going from 417 restaurants to 820. We believe in the country and will keep growing.” In 2022, Pizza Hut India achieved the highest system sales growth of 47% among all Pizza Hut subsidiaries worldwide.

Pereyra emphasized the untapped potential in India, highlighting the significant opportunity for growth. With one Pizza Hut restaurant for every three lakh people in Asia, compared to three million people in India, there is ample room for penetration and expansion. Recognizing the immense potential in Tier II and III markets, Pizza Hut aims to reach young consumers by strategically opening 50% of its total stores in these regions. Currently, 50% of Pizza Hut’s business comes from delivery, while the rest is from dining and takeaway.

Pereyra expressed optimism about the future growth of the domestic quick-service restaurant (QSR) industry in India, projecting a Compound Annual Growth Rate (CAGR) of 11.9% over the next five years, with the market expected to reach around $80 billion. The increasing buying power of the middle class further contributes to the growth potential of Pizza Hut in India.

Operating through its franchise partners Devyani International and Sapphire Foods, Pizza Hut has a chain of 820 QSR stores across 200 cities in India. The company maintains a strong relationship with its franchisees, who have been performing well. Pizza Hut is also catering to Indian taste preferences by introducing new pizza flavors such as Mazedar Makhni Paneer, Dhabe Da Keema, and Nawabi Murg Makhni. Additionally, the company offers Chicken Seekh Kebab crust and the unique Momo Mia pizza, which allows customers to savor their favorite street food item.

To enhance customer reach, Pizza Hut has made its offerings available on the government-backed Open Network for Digital Commerce (ONDC) platforms. This move further expands the accessibility and reach of Pizza Hut in the vast young population of India. As a subsidiary of Yum! Brands Inc, based in Kentucky, USA, Pizza Hut joins other prominent QSR brands such as KFC and Taco Bell in its parent company’s portfolio.