MUMBAI, India -- Restaurant franchisee Dodsal Corporation is planning to spend Rs 100 crore ($20 million) to help Pizza Hut have to 100 stores in India by 2004.
According to a report in the Financial Times, Pizza Hut has 36 stores in 13 metro cities and second-tier cities. Its second growth phase will center on third-tier cities like Indore, Bhopal, Vapi, Rajkot, Trivandrum, Vizag, Vijaywada, Mysore and Mangalore.
"We are talking to several local players in these cities for either tie-ups or outright purchase of property," said Narendra Malhotra, chief operating officer, restaurant and food division at Dodsal Corporation. "By November 2002, we will add three new outlets in Goa, Kochi and Secunderabad."
Dosdal wants to be operating a total of 50 Pizza Hut outlets in India by 2004.
Malhotra said Pizza Hut will expand by opening large format dine-in stores offering delivery and carryout, as well as delivery-carryout (delco) stores where in cities where space is tighter.
The investment per dine-in store is Rs 1.5-2 crore (U.S. $300,000 to $400,000), and about Rs 75-80 lakh (U.S. $150,000 to $160,000), not including real estate, infrastructure, supply chain management and marketing expenditure, for delcos.
Pizza Hut has four franchisees in India: Pizzeria Pure Foods; Devyani International; Wybridge; and Dodsal.