(Photo : Paps Johns-X)
Papa John's International is preparing to re-enter India in 2025 - a year later than it expected. Blame inflation, which has forced many Western companies to recalibrate their plans as consumers keep a tight hold on their spending.
The pizza chain pulled out of the country in 2017, when it conceded that its locations weren't befitting of the brand or franchise partner.
Competitors such as Domino's Pizza and Pizza Hut have moved in and taken hold while Indians' appetite for international flavours has expanded. But Papa John's isn't throwing in the towel on India just yet. A representative confirmed via email that the country "remains a priority," with new store openings still expected this year.
In 2023, the company had some bold goals of its own: to expand to 650 stores in India over the next decade. That's a big move in an overly crowded tata market and considering the high real estate prices.
"India is a tricky market with its own unique set of consumer preferences. We're taking the time to make sure our franchise partner gets it right-from the menu to the tech to the restaurant footprint-so they're set up for long-term success," the company explained.
Meanwhile, inflation is putting the squeeze on middle-class budgets, causing some brands to pump the brakes on their expansion plans.
Even India's Tata Consumer Products, which runs Starbucks through a joint venture, is hitting pause on opening some new stores-for now. They're taking a more measured approach and pushing these plans further down the timeline.
Still, consumer analysts in India remain optimistic about the future for Western fast-food brands. They point to the country's growing dining-out culture and the rapid urbanisation of smaller towns as reasons to believe the market is ripe for long-term growth.
With a young, tech-savvy population and rising disposable incomes, India is proving to be a battleground for international food chains. Even smaller towns are stepping into the spotlight, offering untapped potential for brands willing to adapt to local tastes.