Financial Daily from THE HINDU group of publications
Saturday, Dec 13, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 13, 2003 |
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Marketing
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Retailing VK Modi group co to revamp food chain Ratna Bhushan
New Delhi , Dec. 12 THE VK Modi Group is attempting yet again to revive its flagging food retailing business venture. Its group company, Lombard Street (Estates) Pvt Ltd (LSEPL), is in the process of undertaking a restructuring exercise on behalf of the £150-million company UK-based food retailing chain, Pizza Express. The Modi group company is the Indian master franchisee for Pizza Express. According to Mr Alok Modi, Director, LSEPL, a "modification plan" for the food retail business, which has been operating here under the San Marzano name, has now been initiated. The exercise involves renaming the San Marzano chain as Pizza Express, altering the menu to make it more acceptable to Indian consumers, and dropping prices to make them more "affordable," Mr Modi said. "San Marzano's Italian image did not work in India. Consumers did not accept the Italian food being served at San Marzano. Therefore, we have decided to revert to the Pizza Express name," Mr Modi said. Interestingly, this is the second time the restaurant chain is undergoing a name change in India. The food retailing chain had started operating as Pizza Pizza Express in the late 90s, and in mid-2001, it was rechristened San Marzano (with the exception of the UK). The objective of the rechristening exercise then, company officials had explained, had been to differentiate itself from conventional pizza companies such as Domino's and Pizza Hut, and find a fit between five-star hotels and mainstream pizza chains. Obviously, the strategy did not work. Pizza Express' presence in the country is currently restricted to three outlets — one each in Delhi, Mumbai and Pune. Its second outlet in Delhi had to shut down operations, owing to operating inefficiencies. While company officials had earlier indicated that there were plans to open at least one San Marzano outlet every year in the country, now the company is going slow on its expansion plans.
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