Business Standard, 3 February 2009
Fast food international chains in India appear to be bucking the trend of a slowdown in sales growth. Not only do they claim that their sales have shot up, but they also want to increase their advertising spends this financial year.
Consider this. The sales of Pizza Hut–a casual dining restaurant from Yum! Brands–have gone up by 10 percent in the last quarter(October-December, 2008). Anup Jain, director(marketing), Pizza Hut says: “Casual dining is a casual level of entertainment for the middle class segment, which doesn’t have much scope to be cut.”
McDonald’s India–a leading quick service restaurant–too claims its Q4 sales have gone up significantly as compared to the corresponding period in 2007. Vikram Bakshi, managing direcor, McDonald’s India(north and east region), says: “Our sales have grown 25-28 per cent YoY. We are seeing an increase of 14-18 per cent in footfalls across our stores. We are hopeful of achieving record breaking figures this fiscal.”
Similarly, Unnat Varma, marketing director, KFC (an other quick service restaurant from Yum! Brands), says: “We have grown by 30 per cent (in the last quarter) across the country with some locations recording over 50 per cent growth over the same period last year.”
Pizza Hut adopted a value proposition strategy to increase its sales: “We have focused on providing Big V(more value for money like in Golden Surprise, for those who are looking a value meal in the minimum possible price to attract new guests). After the launch of Golden Surprise and Magic Times pizzas (in December), footfalls have increased by 5 per cent,” Says Jain.
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