Pizza Hut to increase product prices by 5%

The company is currently on an expansion spree with plans to double its outlets by 2012 from existing 138 in India. "Being a market leader, we generally refrain from increasing our prices before others do. We will be increasing the prices of our various products by about five per cent at the end of June," Pizza Hut Marketing Director (Indian Subcontinent) Anup Jain said.     

He said Pizza Hut would increase prices only about three months after similar measures had been announced by other companies in April.     

The company is facing immense pressure from rising commodity prices and so far giving a respite to the consumers, it has absorbed the burden, Jain said. The impending fuel price hike would worsen the scenario, which would hit all industries in the country, he added.     

On its expansion front, Jain said: "From our current 138 outlets, we are planning to double our stores by 2012." Though the company plans to expand through length and breadth of the country, it would mainly focus in Delhi and Mumbai, he added.     

The Rs 250 crore company, which enjoys about 25 per cent market share in eateries, would open 10 outlets in the current year, he said.