The world’s cheapest Domino’s pizza is in inflation-hit India. It costs $0.60

A Domino's staff member stands next to a sign for a 49-rupee pizza at a restaurant in Noida, India, July 4, 2023. (REUTERS)
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Updated 20 July 2023
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The world’s cheapest Domino’s pizza is in inflation-hit India. It costs $0.60

  • Inflation in India sparks cheaper offers from global giant
  • Domino’s and Pizza Hut tout world’s cheapest pizzas

CHENNAI/NEW DELHI: Q: How does the world’s biggest pizza brand respond to high inflation in the world’s most populous nation? A: With the world’s cheapest Domino’s pizza.

The 49-rupee ($0.60) pizza in India, Domino’s No.1 market outside America, is the tip of the spear in its fight against rampant inflation that’s squeezing profits and pricing out many customers, according to the CEO of its franchisee there.

The company wants to “own that price point,” said Sameer Khetarpal, confirming the stripped down, seven-inch cheese pizza with a “sprinkle” of basil and parsley is Domino’s cheapest anywhere.

“You are coming to the store or open the app, because there is a 49-rupee callout,” he said, adding that Domino’s global team supported the plans. “Customers are going to eat out less because prices are higher everywhere — our existing consumers should not go out to some competition.”

In Shanghai, by comparison, Domino’s (DPZ.N) cheapest savoury pizza is priced about $3.80, and in San Francisco about $12, online menu prices show. Domino’s global HQ referred queries about India to its local franchisee.

Reuters interviews with six executives and 12 store managers revealed how Domino’s and other global fast-food giants like Pizza Hut and Burger King are being forced to change tactics to weather rampant inflation in the market of 1.4 billion people.

The companies are striving to hold onto market share gained over three decades of rapid growth in a nation critical to their futures — and one where it’s tough to compete with a street-food culture and a sizzling samosa for as little as 10 rupees.

Khetarpal, whose Jubilant FoodWorks (JUBI.NS) runs Domino’s 1,816 outlets in the country, says he holds a staff meeting first thing every Monday to brainstorm new ways to manage costs and fight the “historic high inflation” that contributed to its profits sliding 70 percent in the first three months of 2023.

He gave new details of Domino’s India pivot and its financial gains; his company has removed lids from all boxes of pizzas sold at stores starting December, saving 0.6 cents each time. He said that amounts to a significant saving in packaging costs because 37 percent of Domino’s Indian business is dine-in.

Jubilant — whose Domino’s business accounted for most of its $635 million in revenues last year — also aims to secure rent rebates from some store landlords by offering upfront payments, Khetarpal said, declining to give further details about cost benefits.

CUSTOMERS EMPTY POCKETS

Domino’s is not alone in zeroing in on prices in India, a highly price-sensitive market that is currently facing higher inflation than many other markets including the US The hope is that low-price offers will draw people to stores and apps who might order more add-ons or upgrade, the executives said.

Pizza Hut is aggressively promoting pizzas starting at 79 rupees ($0.96) that it launched last year and its India franchisee, Sapphire Foods (SAPI.NS), said it was the brand’s lowest-priced globally.

Merrill Pereyra, managing director of Pizza Hut in the Indian subcontinent, said the chain was developing products that “make the brand relevant and easy to access” for price conscious consumers in India, adding its budget pizzas were a hit with young people.

McDonald’s (MCD.N) launched half-price meals in June. They’ll be the focus of promotion efforts in coming weeks, according to Akshay Jatia, executive director at Westlife Foodworld (WEST.NS), which runs 357 outlets in western and southern India. He said the meals would bring in more customers and boost sales and margins.

The budget products are indeed being accompanied by a digital and physical marketing blitz across the nation — with stores, and even a posh New Delhi mall, plastered with banners, according to Reuters visits to stores across four Indian states.

Domino’s flagship inflation-buster is the 49-rupee pizza, which was launched in February. Khetarpal said it was “re-engineered” by cutting price — and tomatoes — from its earlier cheapest offering of 59 rupees.

Franchisee Jubilant said in May it witnessed a cheese price surge of 40 percent during 2022-23, and a 30 percent rise in chicken and paper boxes. There have been more shocks in recent weeks, with tomato prices rising over 400 percent to record highs and households toiling under rising rates of everything from milk to cereals and spices, according to official data.

The industry players described a tale of two consumers in a country with yawning gaps between rich and poor.

Many low and middle-income earners who saw dining at foreign chains as a lifestyle upgrade when the economy boomed are tightening belts as inflation bites, while the wealthier continue to spend on products like pricier smartphones, and SUV cars whose sales are touching new highs.

When Khetarpal visited Domino’s stores in Chennai and other cities, he said he saw customers emptying out their pockets and only being able to scrape together 49 rupees. By contrast, he added, Domino’s new gourmet pizzas priced as high as $14 had seen a sales jump in some affluent areas.

'A SMALL LAYER OF CHEESE'

It’s been a bleak year for Domino’s, the Indian fast-food restaurant leader with a market share of about 12.5 percent, as well as for other companies.

Pre-tax profit at Pizza Hut’s Sapphire Foods more than halved in the March quarter. Burger King’s India franchisee, Restaurant Brands Asia (RESR.NS), saw its net loss widen by 9 percent.

It’s not all doom and gloom, though. Euromonitor International estimates India’s nearly $5 billion market for quick-service restaurants which serve fast food is a fraction of United States’ $341 billion and China’s $137 billion.

The narrower market for pizza, burger and chicken restaurants, dominated by Western chains and worth $2.1 billion in India, will grow, but at a slower pace. Its estimated growth rate is around 15 percent a year until 2027, Euromonitor forecasts. That compares with 21 percent growth in 2022 and 43 percent in 2021 largely due to a post-COVID consumption spike.

Pizza Hut owner Yum Brands (YUM.N) sounded a bullish tone in June, comparing its 17,000 US outlets to its over 2,000 in India, where it sees a “tremendous growth opportunity.”

There are still daunting challenges in the near term.

“For a population eating roadside, in the current environment where inflation is hurting their pockets, (the new offers) are still on the higher side,” said Devanshu Bansal, a consumer analyst at India’s Emkay Global Financial Services.

And many pizza-lovers like Kiran Raj will never contemplate budget offerings. The 26-year-old bank employee said he was prepared to pay a little more for a cheese-loaded product as he devoured slices at Pizza Lounge, a local restaurant in Chennai.

“I avoid buying the sub-100-rupee pizzas at stores operated by big chains as they generally contain less toppings and a small layer of cheese,” he added. “It’s just a rough crust.”


A dozen states sue the Trump administration to stop tariff policy

Updated 6 sec ago
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A dozen states sue the Trump administration to stop tariff policy

  • The suit asks the court to declare the tariffs to be illegal, and to block government agencies

NEW YORK: A dozen states sued the Trump administration in the US Court of International Trade in New York on Wednesday to stop its tariff policy, saying it is unlawful and has brought chaos to the American economy.
The lawsuit said the policy put in place by President Donald Trump has left the national trade policy subject to Trump’s “whims rather than the sound exercise of lawful authority.”
It challenged Trump’s claim that he could arbitrarily impose tariffs based on the International Emergency Economic Powers Act. The suit asks the court to declare the tariffs to be illegal, and to block government agencies and its officers from enforcing them.
A message sent to the Justice Department for comment was not immediately returned.
The states listed as plaintiffs in the lawsuit were Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont.
In a release, Arizona Attorney General Kris Mayes called Trump’s tariff scheme “insane.”
She said it was “not only economically reckless — it is illegal.”
The lawsuit maintained that only Congress has the power to impose tariffs and that the president can only invoke the International Emergency Economic Powers Act when an emergency presents an “unusual and extraordinary threat” from abroad.
“By claiming the authority to impose immense and ever-changing tariffs on whatever goods entering the United States he chooses, for whatever reason he finds convenient to declare an emergency, the President has upended the constitutional order and brought chaos to the American economy,” the lawsuit said.
Last week, California Gov. Gavin Newsom, a Democrat, sued the Trump administration in US District Court in the Northern District of California over the tariff policy, saying his state could lose billions of dollars in revenue as the largest importer in the country.
White House spokesperson Kush Desai responded to Newsom’s lawsuit, saying the Trump administration “remains committed to addressing this national emergency that’s decimating America’s industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations.”


Palestinian student remains detained in Vermont with a hearing set for next week

Updated 30 min 23 sec ago
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Palestinian student remains detained in Vermont with a hearing set for next week

  • In court documents, the government argues that Mahdawi’s detention is a “constitutionally valid aspect of the deportation process”
  • Mahdawi is still scheduled for a hearing date in immigration court in Louisiana on May 1, his attorneys said

BURLINGTON, Vermont: A large crowd of supporters and advocates gathered outside a Vermont courthouse Wednesday to support a Palestinian man who led protests against the war in Gaza as a student at Columbia University and was arrested during an interview about finalizing his US citizenship.
Mohsen Mahdawi, a legal permanent resident for 10 years, was arrested by Immigration and Customs Enforcement agents on April 14. He made an initial court appearance Wednesday during which a judge extended a temporary order keeping Mahdawi in Vermont and scheduled a hearing for next week.
Mahdawi’s lawyers say he was detained in retaliation for his speech advocating for Palestinian human rights.
“What the government provided thus far only establishes that the only basis they have to currently detaining him in the manner they did is his lawful speech,” attorney Luna Droubi said after the hearing. “We intend on being back in one week’s time to free Mohsen.”
In court documents, the government argues that Mahdawi’s detention is a “constitutionally valid aspect of the deportation process” and that district courts are barred from hearing challenges to how and when such proceedings are begun.
“District courts play no role in that process. Consequently, this Court lacks jurisdiction over Petitioner’s claims, which are all, at bottom, challenges to removal proceedings,” wrote Michael Drescher, Vermont’s acting US attorney.
According to his lawyers, Mahdawi had answered questions and signed a document that he was willing to defend the US Constitution and laws of the nation. They said masked ICE agents then entered the interview room, shackled Mahdawi, and put him in a car.
“What we’re seeing here is unprecedented where they are so hellbent on detaining students from good universities in our country,” attorney Cyrus Mehta said. “These are not hardened criminals. These are people who have not been charged with any crime, they have also not been charged under any of the other deportation provisions of the Immigration Act.”
Mahdawi is still scheduled for a hearing date in immigration court in Louisiana on May 1, his attorneys said. His notice to appear says he is removable under the Immigration and Nationality Act because the Secretary of State has determined his presence and activities “would have serious adverse foreign policy consequences and would compromise a compelling US foreign policy interest.”
Last month, Secretary of State Marco Rubio said the State Department was revoking visas held by visitors who were acting counter to national interests, including some who protested Israel’s war in Gaza and those who face criminal charges.
According to the court filing, Mahdawi was born in a refugee camp in the West Bank and moved to the United States in 2014. He recently completed coursework at Columbia and was expected to graduate in May before beginning a master’s degree program there in the fall.
As a student, Mahdawi was an outspoken critic of Israel’s military campaign in Gaza and organized campus protests until March 2024.
US Sen. Peter Welch of Vermont, a Democrat, met with Mahdaw i on Monday at the prison and posted a video account of their conversation on X. Mahdawi said he was “in good hands.” He said his work is centered on peacemaking and that his empathy extends beyond the Palestinian people to Jews and to the Israelis.
“I’m staying positive by reassuring myself in the ability of justice and the deep belief of democracy,” Mahdawi said in Welch’s video. “This is the reason I wanted to become a citizen of this country, because I believe in the principles of this country.”
Mahdawi’s attorney read a statement from him outside the courthouse Wednesday in which he urged supporters to “stay positive and believe in the inevitability of justice.”
“This hearing is part of the system of democracy, it prevents a tyrant from having unchecked power,” he wrote. “I am in prison, but I am not imprisoned.”
Meanwhile, the government is appealing a decision by a different Vermont judge who said another detained student, Rumeysa Ozturk of Tufts University, should be returned to Vermont.
On Tuesday, members of Congress from Massachusetts traveled to Louisiana to meet with Ozturk and Columbia University student Mahmoud Khalil. US Sen. Ed Markey and US Reps. Ayanna Pressley and Jim McGovern expressed concern at a news conference Wednesday that the students, as well as other detainees, were being deprived of nutritious meals, sleep and blankets in the cold facilities.
Khalil and Ozturk have not committed any crimes, the delegation said — they are being unlawfully detained for exercising their right to free speech.
“They are being targeted and imprisoned because of their political views,” McGovern said.


Trump plans to exempt carmakers from some tariffs, FT reports

Updated 23 April 2025
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Trump plans to exempt carmakers from some tariffs, FT reports

US President Donald Trump is planning to spare carmakers from some tariffs, The Financial Times reported on Wednesday, citing two people with knowledge of the matter.
Car parts would be exempted from tariffs that are being imposed on imports from China over fentanyl and tariffs levied on steel and aluminum, the report added.


The owner of a Dominican nightclub whose roof collapsed, killing 232, speaks for the first time

Updated 23 April 2025
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The owner of a Dominican nightclub whose roof collapsed, killing 232, speaks for the first time

  • Espaillat told a reporter with El Día news program that employees had added new plasterboard to the roof hours before the collapse
  • “We always bought plasterboard. Always,” said Espaillat, who spoke in a subdued manner throughout the nearly one-hour interview

SAN JUAN, Puerto Rico: A roof that collapsed at a popular nightclub in the Dominican Republic and killed 232 people this month had filtration problems for decades and had been repeatedly fixed with plasterboard, according to its owner.
Antonio Espaillat, who also serves as manager of the Jet Set nightclub in the Dominican capital of Santo Domingo, spoke with local TV station Telesistema on Wednesday in his first interview since the April 8 disaster.
Espaillat told a reporter with El Día news program that employees had added new plasterboard to the roof hours before the collapse.
He noted that plasterboard had fallen repeatedly throughout the years for reasons including water that filtered through the club’s air conditioning units. However, Espaillat said no one ever inspected the roof or water filtrations.
“We always bought plasterboard. Always,” said Espaillat, who spoke in a subdued manner throughout the nearly one-hour interview.
A spokeswoman for Espaillat did not return a message for comment seeking an interview with him.
Espaillat said he learned about the collapse when his sister called him from underneath the debris, trapped along with hundreds of others attending a concert by beloved merengue singer Rubby Pérez, who was among those killed.
“To the families of the victims, I want to say I’m sorry. I’m very sorry,” Espaillat said. “I am completely destroyed.”
‘We were all surprised’
Espaillat said he was 6 years old when his mother founded the legendary club 52 years ago. The club later moved to a space occupied by a shuttered movie theater and remained in that location for 30 years until the collapse.
He said there were six air-conditioning units on the roof, plus three water tanks. An electric plant was installed in an adjacent room, not on the roof, he added.
Every six to eight years, a specialized crew would waterproof the roof, with the last waterproofing done about a month before the collapse, he said.
The heavy woofers that boomed music at Jet Set, known for its merengue parties held every Monday, were on the floor, he said.
Espaillat said if there was something he could have done to avoid the collapse, he would have done it.
“There was no warning, nothing. We were all surprised,” he said.
‘I’m going to face everything’
The Dominican government has created a committee that includes local and international experts tasked with investigating the collapse.
About 515 people were at Jet Set when the roof fell on the crowd, according to Espaillat.
In the 53 hours following the disaster, crews rescued 189 survivors. Dozens of others were hospitalized.
The 232 victims include seven doctors; a retired UN official; former MLB players Octavio Dotel and Tony Enrique Blanco Cabrera; and Nelsy Cruz, the governor of Montecristi province and sister of seven-time Major League Baseball All-Star Nelson Cruz,
At least three lawsuits have been filed.
Espaillat, who said he usually attended Jet Set’s Monday merengue parties, was in Las Vegas for a convention when his sister called.
“How can a roof collapse?” he recalled wondering as he flew back to the Dominican Republic.
Espaillat said he did not immediately visit the site upon arriving because officials worried about his safety, noting that people at the scene were angry.
He said he hasn’t slept much since the disaster, and that he has talked to the families of his employees and some of the victim’s relatives.
“I’m going to face everything,” he said. “I’m not going anywhere.”
An ongoing investigation
The investigation into what caused the collapse could take a couple of months and has raised questions about the safety of infrastructure across Santo Domingo and beyond.
There is currently no government agency tasked with inspecting the buildings of private businesses in the Dominican Republic, although President Luis Abinader announced last week that new legislation is expected to change that.
Yamil Castillo, a structural engineer and vice president of the Society of Engineers of Puerto Rico, said water leaks can be extremely damaging and should be taken care of immediately.
Castillo, who is not involved in investigating the collapse, warned that water seeping into the different materials that compose a roof can weigh it down, in addition to whatever else is placed on the roof, including air conditioning units.
Salty air also cause corrosion and roof damage, he said.
“Those leaks should have been fixed,” Castillo said, adding that replacing the plasterboard was not enough.


Lithuania accuses Belarus, Russia of operation against Belarusian exiles

Updated 23 April 2025
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Lithuania accuses Belarus, Russia of operation against Belarusian exiles

  • VSD said the goal of the alleged operation had been to cause conflicts between Lithuanians and Belarusians Vilnius
  • It accused Minsk and Moscow of recruiting people to organize and undertake attacks

VILNIUS: Lithuania’s intelligence service accused Belarus and Russia on Wednesday of attempting to organize attacks against Belarusians in the Lithuanian capital Vilnius.
The State Security Department (VSD) said the goal of the alleged operation had been to cause conflicts between Lithuanians and the tens of thousands of Belarusians in the Baltic state.
Many Belarusians, who include opposition figures and activists, moved there as Minsk clamped down on dissent after a 2020 presidential election that rights groups said was fraudulent.
“Russian and Belarusian intelligence services have been conducting ... an operation since 2023 aimed at fomenting ethnic tensions between Lithuanian society and the newly-arrived Belarusian diaspora to make them feel unsafe in the country,” the VSD said in a statement.
It accused Minsk and Moscow of recruiting people to organize and undertake attacks on Belarusian exiles in exchange for cryptocurrency payments.
It said the assaults were prevented but did not specify how.
The VSD also accused the two countries of recruiting people to spray anti-Belarusian and anti-Lithuanian graffiti in Vilnius.
It said a series of vandalism acts targeting Belarusian businesses and cultural centers had taken place since last year.
The intelligence service claimed Belarus and Russia recruited people mainly from the Russian-speaking Lithuanian community on Telegram, a secure messaging app.
European officials have accused Russia of orchestrating a hybrid war against Western countries supporting Ukraine since Moscow invaded the country in February 2022.
The term “hybrid” is commonly used to describe attacks that do not use conventional military tactics, such as sabotaging infrastructure or launching cyberattacks.
In March, Lithuania arrested two Ukrainians for attempting to set fire to an IKEA store in Vilnius — an incident it blamed on Russian intelligence.
“Lithuania’s intelligence services warn that the work of Russian and Belarusian secret services in Lithuania remain intensive,” the VSD said.