By Praveen Paramasivam
(Reuters) - U.S. pizza chain Papa John's International (NASDAQ:PZZA) plans to make its return to the Indian market in 2025, a year later than planned, while many Western brands rethink their plans as inflation hits consumer spending.
Papa John's exited India in 2017 saying its restaurants were not able to meet the expectations of the brand and the franchisee.
In the meantime rivals Domino's Pizza (NYSE:DPZ) and Pizza Hut have become popular as Indians increasingly opt for international cuisine.
India "remains a priority" and the company will open its first restaurants this year, a spokesperson for Papa John's said by email.
Under plans outlined in 2023, the company aimed to scale up to 650 outlets over a decade.
"India is a complex market with unique consumer preferences. We are taking the necessary time to ensure our franchise partner opens with the right products and menu, technology, and restaurant footprint to ensure their long-term success," the company said.
Inflation is also squeezing middle class budgets, prompting some players to slow expansion plans.
India's Tata Consumer Products, which operates Starbucks (NASDAQ:SBUX) stores under a joint venture, is pushing back plans for some new outlets until later in its schedule.
Consumer analysts in India still believe in the longer-term prospects for Western fast-food brands in the country noting its growing eating-out culture and urbanisation of smaller towns.
Papa John's has more than 5,900 locations in about 50 countries and territories, according to its website.