Burger King says tomatoes on ‘Leave’ as India battles food inflation
Spread the love

There has been a price increase of more than four times in the prices of tomatoes at Burger King outlets in many Indian cities, the latest symptom of surging food inflation that is affecting the world’s most populous nation hard.

“Even tomatoes need a vacation … we are unable to add tomatoes to our food,” read notices pasted at Burger King outlets in India. Quality issues have been cited as the reason for the shortfall by the chain.

A large number of McDonald’s and Subway stores have also removed tomatoes from their menus as India’s food inflation this week hit its highest level since January 2020.

After years of offering free cheese slices, the US sandwich chain canceled the program.

Meanwhile, Domino’s has brought down its prices to compete with struggling consumers with a $0.60 pizza that is its cheapest in the world.

A tomato supply crisis has coincided with a rise in prices by 450 percent as monsoon rains disrupted crops and supply chains – although the price increase has since abated.

A question titled “Why are there no tomatoes in my Burger King burgers? ” reads a question on the support page of Burger King India’s website.

The answer states its Indian franchisee follows “very high standards of quality” and tomatoes will be back soon. “We request your patience and understanding,” it says.

Restaurant Brands Asia, which operates Burger King in India, did not respond to requests for comment.

The pain is spreading with July retail inflation data released this week showing prices of vegetables rose 37pc over a year. The cost of staples from onions and peas to garlic and ginger have all risen.

“If the prices remain high, then eventually restaurants will have to take price increases,” said Amnish Aggarwal, head of research at India’s Prabhudas Lilladher. “There is no other alternative.”

As well as placing pressure on the margins of foreign chains operating in India’s nearly $5 billion market for fast-food restaurants, the price shocks pose a challenge for Prime Minister Narendra Modi’s government ahead of a national election next year.

To manage the supply crisis, India has started tomato imports from Nepal and has organised vans to distribute the staple at cheaper rates across the nation, with social media posts showing huge queues.The answer states its Indian franchisee follows “very high standards of quality” and tomatoes will be back soon. “We request your patience and understanding,” it says.

Restaurant Brands Asia, which operates Burger King in India, did not respond to requests for comment.

The pain is spreading with July retail inflation data released this week showing prices of vegetables rose 37pc over a year. The cost of staples from onions and peas to garlic and ginger have all risen.

“If the prices remain high, then eventually restaurants will have to take price increases,” said Amnish Aggarwal, head of research at India’s Prabhudas Lilladher. “There is no other alternative.”

As well as placing pressure on the margins of foreign chains operating in India’s nearly $5 billion market for fast-food restaurants, the price shocks pose a challenge for Prime Minister Narendra Modi’s government ahead of a national election next year.

To manage the supply crisis, India has started tomato imports from Nepal and has organised vans to distribute the staple at cheaper rates across the nation, with social media posts showing huge queues.