Pizza wars: Domino’s success in Nigeria

In the News | 8 September 2023

(BUSINESS INSIDER AFRICA)

Domino’s success in Nigeria

• A 2022 Africa survey showed Pizza Hut as the top pick in Egypt, Ghana, Kenya, Morocco, and South Africa.
• In Nigeria, Domino’s Pizza led with a 74% preference, highlighting regional pizza preference differences.
• Domino’s success in Nigeria may be linked to diverse flavours, competitive prices, and effective customer feedback, while Pizza Hut prevailed elsewhere in Africa.

In a recent survey conducted across several African countries, Pizza Hut emerged as the top choice over Domino’s Pizza in Egypt, Ghana, Kenya, Morocco, and South Africa.

The survey by Sagaci Research revealed that in Ghana, a whopping 81 per cent of respondents and 76 per cent in Egypt preferred Pizza Hut.

In contrast, Domino’s Pizza garnered significant popularity in Nigeria, with a preference rate of 74 per cent.

The survey also shed light on the overall preference for Pizza Hut, with 66 per cent of respondents favouring this company, while 44 per cent leaned towards Domino’s.

Some intriguing patterns emerged when considering demographic factors.

Notably, men exhibited a stronger inclination toward Domino’s (37%) compared to women (31%).

Additionally, younger consumers seemed more drawn to Domino’s, while Pizza Hut performed better with women and older age groups.

Across the board, Pizza Hut held the lead in five out of the six countries where both brands were active, namely Egypt, Ghana, Kenya, Morocco, and South Africa.

The exception was Nigeria, where Domino’s garnered a strong preference of 74 per cent, as opposed to only 26 per cent for Pizza Hut.

Domino’s particularly excelled among the middle-class income groups, typically earning between 250 USD to 1,000 USD monthly.

What might explain this unique market dynamic in Nigeria?

According to the survey, several assumptions can be considered.

First, Domino’s Pizza’s fusion of global and regional flavours possibly contributed to increased demand for the brand.

While 70 per cent of their pizza offerings feature international flavours, the company localized its menu by 30 per cent, including unique offerings like West African Jollof rice as a pizza topping.

Furthermore, pricing may play a pivotal role in Domino’s success. Despite maintaining premium prices like other pizza makers, Domino’s could have gained market share by strategically reducing its prices to stay competitive.

Read the original article on Business Insider Africa.