Contact Us/Whatsapp on - +91 8949793519
.
Why Papa John's Failed in India? | Papa John's Pizza Case Study
Papa Johns is one of the familiar names across the case studies that we engage within our management courses. This American pizza restaurant franchise is the fourth largest pizza restaurant chain in the United States. However, the firm was unable to establish itself as it expected in India. In July 2017 Papa Johns had to shut down its remaining 33 restaurants. The people who were aware of the entire matter say that this plan was going on for over a year.
Papa Johns Entry In India
Papa John’s took its first step in India in 2006. They were run by Om Pizza and Eats. This firm was owned by the nephew of the steel baron Lakshmi Mittal - Atulya Mittal. Their main intention was to seize the pizza market in India and attract the customers of the already established pizza giants in India like Dominos and Pizza Hut. Papa John’s first opened four outlets in India.
They had very clear reasons for choosing India to expand their business. One of the main reasons was the immense efficiency of the consumer food market as far as national productivity, innovation and R&D was concerned.
Papa Johns Expansion in India
In June 2006, Papa Johns opened its first outlet in India in Noida. Aiming to take advantage of the rising middle class in India, it planned to open various outlets in all the prominent places in India. These places include Delhi, Haryana, Punjab, Himachal Pradesh, Rajasthan, Uttar Pradesh and Uttaranchal. The outlets were opened by Om Pizza Eats India, the master franchise for Papa John's.
Om Pizza had been operating more than 15 Papa John’s outlets across India and had a revenue of Rs.25 crores and expected an annual cash loss of Rs.10 crores. However, in December 2013 the controlling stakes in the major franchise were bought by Avan projects for Rs 25 crores.
Why Papa John's Failed in India?
There are several factors responsible for failure of Papa Johns India. The challenges faced by Papa John's that eventually resulted in the fall and closure of Pizza company in India are mentioned below.
Unprepared for Competition
In India, Papa John’s had to face a lot of unprecedented challenges. Not all the challenges can be included in this category of unexpected, some of the problems were due to the lack of planning and vision of the firm.
The first one was its inability to compete with the giants in the industry like Pizza Hut and Domino's. Not only that, the other two really took advantage of the shortcomings of Papa John’s which made things harder for the company.
.
Follow us on Instagram - [ Ссылка ]
Linkedin - [ Ссылка ]
Bhavpreet Sir On Instagram - [ Ссылка ]
Facebook - [ Ссылка ]...
Sonisvision Youtube channel - [ Ссылка ]...
About :
Billionpreet by Bhavpreet Singh Soni it is a ultimate business channel which motivates young entrepreneurs to invest and increase there business. We started with the franchise business but now we're going to scale it with good Startups. We're building a platform where Franchisors, Startups and Investors can meet at one place.
Focusing on the Indian Franchise is our main Focus, how we can help them grow their business in-terms of Money, Expansion, Brand Identity, Values, etc.
#franchisemodel
#franchiseopportunity
#businessfranchise
#franchisesuccess
#entrepreneurship
#FranchiseInvestment
#franchisee
#franchisor
#franchisebusiness
#FranchiseExpansion
#FranchiseNetwork
#FranchiseGrowth
#businessownership
#FranchiseBenefits
#franchiseindustry
#FranchiseSupport
#franchisedevelopment
#FranchiseTraining
#FranchiseROI
#franchisemarketing
