The Pizza Story - courtesy Finshot

The Story There are usually two ways a company can capture a market. One, it can take the first-mover leap into uncharted waters, introducing a product no one’s seen before. It breaks in, learns the ropes, adapts, and grows with the market. Two, if the first mover has already nailed it, you still enter—only this time, you play the challenger, trying to win by doing things differently. And every industry has both kinds of players. In food delivery, Zomato set the pace, while Swiggy and Rapido came in later as challengers. In quick commerce, Blinkit took the early lead, followed by Zepto and Instamart. In ride-hailing, Ola was the pioneer, with Uber and Rapido following suit. But in today’s story, we’re zooming in on India’s quick service restaurant (QSR) market. More specifically the pizza game. Here, there’s no debate about who the first mover is. It’s Domino’s. The challengers? Pizza Hut, La Pinoz and a bunch of smaller regional brands. Now, whether you’re a successful first mover or a competitor, it’s not easy being either. Both need to fight hard to hold onto their slice of the pie. Because first movers don’t always stay on top forever. Except Domino’s in India has managed to do exactly that. It entered the country in 1995, right when India was opening up its economy to the world. Back then, most people weren’t exactly craving a foreign dish with bread, cheese and tomato sauce. But Domino’s figured out what mattered most — price and taste. So it created a range of affordable pizzas tailored to Indian palates. Vegetarian toppings. Tandoori flavours. Pocket-friendly meals. The formula clicked. Even Pizza Hut tried to play the same card, but Domino’s had already grabbed the first-mover advantage. And today, it controls more than half of India’s organised pizza market and nearly 70% of online pizza delivery. Everyone else is still trying to catch up. Which makes it all the more surprising that Papa John’s, another big American pizza chain, wants to return for another shot at India, despite failing miserably the first time. For context, Papa John’s is the world’s third-largest pizza chain. It quit India in 2017 after a disappointing decade-long run. But now it’s back. Its first new store will open in Bengaluru in a couple of months, with plans to launch 650 outlets across the country over the next few years. But why try again after burning your fingers once, you ask? To answer that, let’s rewind to why Papa John’s failed the first time around. The simplest explanation is this: everything Domino’s did right, Papa John’s didn’t. To begin with, when it entered India in 2006, its goal was to challenge Domino’s and Pizza Hut. It saw a booming middle class and aimed to ride the wave. But instead of adapting, it stuck to its American playbook. It positioned itself as a premium brand and stuck to the same US menu. That meant pizzas topped with red meats like pork and beef — items most Indians either don’t eat for cultural or religious reasons. Domino’s, meanwhile, had quickly realised that winning here meant bending to Indian tastes, not the other way around. Papa John’s also priced itself higher. But this was the era when India’s millennials — the first generation to spend a significant chunk of their food budgets, nearly 10% compared to just 3% for their parents — were discovering cheap Domino’s pizzas. Domino’s quickly became the go-to comfort food, while Papa John’s was seen as the overpriced outsider. And then there was expansion. By 2017, Papa John’s had only 66 stores in 11 cities, while Domino’s had over 1,000 outlets across more than 200 cities. It aggressively moved into Tier-2 and Tier-3 towns, becoming the first international food chain in many smaller places. Add to that its famous “30 minutes or free” delivery and consistent customer service, and Domino’s locked in loyalty across the board. Put all this together, and you’ll see why Papa John’s simply couldn’t keep up. With a weak strategy, slow expansion and managerial missteps, it was forced to bow out. And fast forward to today, things have changed even more. Domino’s has ballooned to over 2,240 outlets in India. Its nearest competitor, Pizza Hut, has less than half that number. And now, regional pizza chains have muscled their way in too, grabbing nearly 30% of India’s organised pizza market. India’s La Pinoz Pizza is even trying to take on the American giants at a national level. In other words, competition is tougher than ever. And conditions aren’t exactly favourable either. Discretionary spending has slowed, with India’s middle class saving less. Input costs for QSRs have gone up. And the price wars sparked by food delivery platforms offering steep discounts have further squeezed margins. Even Domino’s isn’t immune. When Papa John’s left India, its operating margin was just 4.6%, compared to Domino’s 9.7%. Today, Domino’s revenues are growing in double digits most years, and its operating margins have doubled to around 19%. But its net profit margins have actually fallen from 4.8% to 3.2%, over the last decade. Thanks to rising costs like rent and staff salaries. In short, even the market leader is struggling to protect its bottom line. So for Papa John’s, entering this battlefield will be anything but easy. Which brings us back to the question: why bother coming back? Well, maybe Papa John’s has been swept up by the “escape competition effect”. To understand what that means, imagine a race where runners are shoulder-to-shoulder. The pressure doesn’t make them drop out. Rather, it pushes them to run harder and find new techniques to win. Businesses often work the same way. Intense competition can force companies to up their game, adopt new models or simply do things better. And perhaps Papa John’s sees India not as a hopelessly saturated market, but as a place where innovation could give it an edge. And the lure is obvious. India’s pizza market is already worth ₹15,000 crores and is growing at 9.3% annually. The country has a massive, young population and pizza penetration is still low compared to other global markets. Which means there’s plenty of headroom for growth. The pie itself is getting bigger, even if Domino’s still hogs most of it. Plus, this time, Papa John’s is also entering with a new partner — PJP Investments Group, backed by Dubai-based Levant Capital. PJP already operates over 100 Papa John’s outlets across the UAE, Saudi Arabia and Jordan. In other words, they’ve got experience adapting the brand outside the US and dealing with diverse consumer bases. That might just help them avoid the mistakes of the past. And maybe that’s what it’ll take — knowing what not to do. Sure, it might sound like Papa John’s will have to copy Domino’s or Pizza Hut, but if it wants to compete, it can’t just copy-paste. Instead, it’ll have to carve out its own niche and offer something unique, just like its tagline: “Better Ingredients. Better Pizza”. Until next time… Don’t forget to share this story on WhatsApp, LinkedIn and X.

The Law of the Farm

The Law of the Farm is a concept that illustrates the importance of patience, discipline, and long-term thinking in investments. The law states: The Law of the Farm You reap what you sow. You reap later than you sow. You reap more than you sow. This law can be applied to investments in the following ways: *1. You Reap What You Sow* - The quality of your investments determines the quality of your returns. - Investing in high-quality assets, such as dividend-paying stocks or index funds, can lead to better returns over time. *2. You Reap Later Than You Sow* - Investments take time to mature. - It's essential to have a long-term perspective and avoid expecting quick returns. - The power of compounding works in your favor over time, but it requires patience. *3. You Reap More Than You Sow* - The magic of compounding helps your investments grow exponentially over time. - Small, consistent investments can lead to substantial returns in the long run. - The earlier you start investing, the more time your money has to grow. By applying the Law of the Farm to investments, you can: - Develop a long-term perspective - Focus on quality investments - Cultivate patience and discipline - Harness the power of compounding Remember, investing is a journey that requires time, effort, and perseverance. By following the principles of the Law of the Farm, you can set yourself up for success and achieve your financial goals.

Look before you leap

"Look before you leap" - mutual funds and wealth management savings in India: When it comes to investing in mutual funds or wealth management savings in India, it's essential to exercise caution and careful consideration. The age-old proverb "Look before you leap" couldn't be more apt. With numerous investment options available, investors must take the time to assess their financial goals, risk tolerance, and time horizon before making a decision. A well-informed decision can help avoid costly mistakes and ensure that investments align with one's financial objectives. In the Indian mutual fund landscape, there are various schemes catering to different investor needs. From equity and debt funds to hybrid and index funds, the choices can be overwhelming. Before investing, it's crucial to look at factors such as the fund's performance track record, expense ratio, and portfolio composition. Additionally, investors should consider consulting with a financial advisor or conducting their own research to ensure they're making an informed decision. By looking before leaping, investors can set themselves up for long-term financial success.

Financial Budgeting and well-being

WHY IS BUDGETING IMPORTANT FOR YOUR FINANCIAL WELLBEING? Budgeting is a crucial aspect of personal finance that plays a significant role in ensuring an individual's financial well-being. Here are some reasons why budgeting is important: Tracking Expenses 1. *Identify areas of overspending*: Budgeting helps individuals understand where their money is going, making it easier to identify areas where they can cut back. 2. *Prioritize spending*: By allocating funds to different categories, individuals can prioritize their spending based on their financial goals. Managing Finances 1. *Create a financial roadmap*: A budget serves as a roadmap for achieving financial goals, such as saving for retirement, paying off debt, or building an emergency fund. 2. *Make informed financial decisions*: With a clear understanding of their financial situation, individuals can make informed decisions about investments, loans, and other financial opportunities. Reducing Financial Stress 1. *Reduce debt*: Budgeting helps individuals manage debt by allocating funds towards debt repayment and avoiding new debt. 2. *Build an emergency fund*: By setting aside a portion of their income, individuals can create a safety net to cover unexpected expenses, reducing financial stress. Achieving Long-Term Goals 1. *Retirement planning*: Budgeting helps individuals save for retirement by allocating funds towards retirement accounts, such as 401(k) or IRA. 2. *Wealth creation*: By investing wisely and avoiding unnecessary expenses, individuals can create wealth over time. Improving Financial Discipline 1. *Develop a savings habit*: Budgeting helps individuals develop a savings habit, which is essential for achieving long-term financial goals. 2. *Avoid impulse purchases*: By prioritizing spending and allocating funds wisely, individuals can avoid making impulse purchases that can derail their financial progress. In conclusion, budgeting is essential for achieving financial well-being. By tracking expenses, managing finances, reducing financial stress, achieving long-term goals, and improving financial discipline, individuals can take control of their financial lives and secure a brighter financial future.

Stress Free!

All this talk of Stress Tests on mid cap and small cap funds....all because of the extra 'froth' that every good cup of coffee has...and attracts! My point is asset allocation is a function of your Risk Profile and Risk appetite. As per your portfolio plan, you would allocated funds into the asset class with time horizons proportionately. Surely, it could not have been looking at liquidity, days for liquidation of portfolio, when deciding on a mid cap or small fund! A pure overnight or liquid fund will be just right for that. So if a frothy coffee excites you, remember there is a Starbucks price to it, there is a doctor signoff based on your health condition...and most importantly why you are having the coffee?!! Is it time pass, grabbing a quick bit before you move on or it is a deliberate SIP ..before better things ahead?!! Life is not all about stress tests only....but health is! So healthy diet, healthy lifestyle and planned investments...the road to Stress free life. #joyofliving #joyofinvesting #stressfree

In Iraq’s book market, books remain on the street at night. Iraqis say, _the reader doesn’t steal, the thief doesn’t read._ Carrying a line of dichotomy in finance, let us say, _the one in a hurry doesn’t make money, the one making money is never in a hurry._ In the last 43 years of Sensex, across ~11000 trading days, here is the data proving this simple fact: Positive and negative returns were observed as follows: ♻️ Daily: 53% positive, 47% negative ♻️Weekly: 56% positive, 44% negative ♻️ Monthly: 61% positive, 39% negative ♻️ Quarterly: 64% positive, 36% negative ♻️ Yearly: 72% positive, 28% negative ♻️ 3 years: 89% positive, 11% negative ♻️ 5 years: 96% positive, 4% negative ♻️ 10 years: 100% positive, 0% negative #joyofinvesting #blueskypremiere #whatsapp8697729504 courtesy Axis AMC

Spending smartly during the festive season

*Spend smartly this festive season* In October, thanks to Durga Pujo, Navratri and Dusshera, e-commerce websites, retail chains, and independent neighbourhood stores are rolling out festive shopping offers. Make a budget and track your shopping expenses during the festival season. Prepare a list of gift items that you need to buy, use cards from partner banks for additional discounts and cashbacks. Redeem reward points for additional savings. Avoid shopping for things you may not use immediately, thus, avoiding impulsive spending and *redemption of investments.* Blue Sky Premiere introduces *LAMF (Loan against Mutual Funds)*. Lien your Debt/Mutual fund units and take short term credit against them. Instant disbursal of amount at low interest rate. To know more click here : https://rb.gy/f8y3j