How La Pino’z Dominated the Indian Market

Sanam Kapoor left his comfortable job at HCL to create his own business, his parents, seeing his determination sold their property and gave him an investment of 15 lack rupees. Never have they thought that their son would create an almost 1000 crore company and create the third-largest pizza chain in India?

This is the story of how Sanam Kapoor created one of the most valuable startups in India

Breeding ground

After quitting his job at HCL, Sanam started looking for business opportunities. He laid his eyes on the India Pizza Market.

He found out that companies like Dominoes and Pizza Hut weren’t selling pizzas for the Indian Pallette, just like Chandubhai who created Balaji, Sanam found a gap in the market and decided to create a pizza chain named La Pino’z focused on producing quality pizzas in the Indian pallette.

Just like Balaji, La Pino’z also customized its menu depending on the location, A customer living in Maharastra will have a different menu than that of Gujarat.

McDonald’s also followed the same approach when it came to India it had to localize its menu to comply with Indian taste, hence the famous Mc aloo tikki was invented.

Expansion

Sanam started his first pizzeria in Chandigarh Sector 9 market, but Sanam struggled to grow his business as his pizzeria was in an isolated area, even though it was very popular in that area, he struggled to get a large volume of customers to create a reasonable profit.

Somehow he opened another store in Mohali in 2012 when a pivotal event happened that changed La Pino’z forever. A customer liked the pizza and enquired if they would be ready to give him a franchise. Sanam got an idea and used a franchise system to expand his business.

What distinguished Sanam from other HODs was that he decided to give his franchise to local people from the area, The local people were given full authority over the La Pinoz franchise and this proved to be a genius move by Sanam as the locals people had a better idea of the market, They had good connects with the people of the area, they had a good overview of the problems and the solution of the area.

Problems and Solutions

Sanam found out that many franchise owners were diluting the ingredients to make it more expensive and much cheaper to increase the margin, Sanam knew that this could negatively affect his brand so he came up with an idea, a simple rather different idea

he decided to reduce the profit share from 8% to 4% and assured the franchise of cheaper raw materials since La Pinoz themself started selling raw materials to their franchise, this single move gave Sanam two benefits, one was that he had the assurance that the end product’s quality will be top notch and will retain the reputation of the brand

the second thing was that Sanam found another revenue stream, till now selling raw materials to franchise owners gives the largest proportion of revenue to La Pinoz. This strategy is also used by other companies like Dominoes etc

Conclusion

In the financial year 2023, la Pinoz’s revenue touched a staggering 1000 crore with the store count rising to 600. La Pinoz has now become the third-largest pizza chain after Pizza Hut. La continues to grow and has expanded abroad, it has opened its stores in places like Canada and the UK.

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image credits : LaPinoz

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