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Papa John’s to re-enter India in October with 650-store expansion plan

by August 26, 2025
by August 26, 2025

Papa John’s International is set to make a comeback in India this October, nearly eight years after it shut down operations in the country following years of underperformance.

The US pizza chain, the world’s third-largest in the delivery business, plans to open 650 stores nationwide over the next decade, according to its master franchisee.

The first outlet will open in Bengaluru, said Vish Narain, managing partner at Pulsar Capital, which along with UAE-based PJP Investments Group has been appointed Papa John’s joint master franchisee in India.

“The fast-food category in India remains under-penetrated, so we are many years away from saturation,” Narain told Reuters, expressing confidence in the market’s long-term growth potential.

India witnessing a challenging market for fast-food chains

Papa John’s re-entry comes at a time when India’s fast-food sector is facing headwinds.

Urban consumers, a crucial base for international chains, are cutting back on discretionary spending due to sluggish wage growth and inflationary pressures.

Sales growth has slowed across the industry, prompting rivals to recalibrate their expansion plans.

Devyani International, one of Pizza Hut’s franchisees, has been closing underperforming stores, while Sapphire Foods India, another operator of the Yum Brands chain, has adopted a cautious stance toward new outlets.

At the same time, competition has intensified.

Domino’s Pizza commands the market with more than 2,200 outlets, while Pizza Hut runs close to 950.

Smaller upscale chains such as Pizza Bakery and PizzaExpress are also vying for a share of the growing but crowded market.

Betting on India’s long-term growth

Despite current challenges, investors such as Pulsar Capital believe India’s demographics and consumption story remain compelling.

Companies ranging from Hindustan Unilever to brewer Heineken continue to expand operations, betting on rising demand from the country’s 1.4 billion people.

Papa John’s is adopting a similar approach, hoping to capture growth once consumer sentiment improves.

The company also plans to localize its menu, tailoring offerings to Indian tastes while retaining its signature pizzas.

Rivals have already leaned on localization to build loyalty: Domino’s sells chicken tikka pies, KFC markets a paneer zinger burger, and Subway has long offered potato-patty sandwiches.

Why did Papa John’s exit India in 2017?

Papa John’s first entered India in 2006, opening its debut outlet in Noida through master franchisee Om Pizza Eats India.

The brand had ambitious plans to target the growing middle class with stores across Delhi, Haryana, Punjab, Rajasthan, and Uttar Pradesh.

However, the expansion fell short of expectations.

One of the key challenges was the inability to compete with Domino’s and Pizza Hut, both of which had first-mover advantage, wider networks, and aggressive pricing.

Domino’s in particular was able to sell at thinner margins, leveraging its scale to dominate the market.

Papa John’s, by contrast, struggled with weaker profitability.

In 2014, its net margin stood at 4.6% of total sales compared to 8.2% for Domino’s and 7.9% for Pizza Hut.

A merger with Pizza Corner in 2014 was expected to revive its fortunes, but operational inefficiencies and lack of strategic planning dragged down performance.

The company eventually exited the market in 2017, closing all of its outlets.

A second chance in a shifting landscape

Papa John’s return mirrors that of Little Caesars, another US chain that entered India earlier this year with plans for 100 outlets by the decade’s end.

Both brands are seeking to carve out space in a market that remains attractive despite current volatility.

For Papa John’s, the challenge will be not just to reopen stores, but to adapt effectively to local tastes, manage costs, and stand out in a highly competitive industry.

Its second attempt at building a presence in India will test whether lessons learned from its earlier failure can translate into a sustainable business this time.

The post Papa John’s to re-enter India in October with 650-store expansion plan appeared first on Invezz

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