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Monday, July 28, 2008

Pizza Hut, Big Mac & Nirula's woo customers

NEW DELHI: As inflation impacts consumer spends, leading restaurant chains—Pizza Hut, McDonald’s and Nirula’s—are taking pre-emptive measures to avoid any decline in footfalls. They are doing this by way of makeover or strategy shift. Take the case of Nirula’s.

The chain has spent Rs 30 crore on a facelift and will now be offering low-priced meals to attract new customers. Pizza Hut is spending around Rs 50 crore to transform the brand with new look and improved menu. Similarly, McDonald’s, which has positioned itself as a mass brand, is now eyeing higher profits through premium offerings.
Pizza Hut has launched an ‘enhanced dine-in’ concept in the casual dining segment for the first time in India.

“While we want to challenge ‘up-market’ eateries through our ambience and hospitality,the variety and prices would attract middle-class families,” says Pizza Hut marketing head Anup Jain.

Nirula’s, known for selling ‘quality and variety’ targeting upper class and middle class, will add affordability in its menu. “Middle class is already feeling the pinch because of inflation so we would not like to add to their burden,” says Nirula’s senior VP Sudipta Sen Gupta. McDonald’s has now tweaked its strategy to improve profitability.

Whenever there have been high inflationary trends, people tend to shift their eating-out preferences from fine-dining to quick service restaurant format and McDonald’s is the leader in that segment, says McDonald’s India MD Vikram Bakshi.

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