As food inflation continues to surge across India, Burger King has taken the unusual step of removing tomatoes from its wraps and burgers in many of its Indian outlets. This decision comes in response to the skyrocketing prices of tomatoes, which have increased by more than fourfold, highlighting the severity of the current food inflation crisis. Notices displayed at select Burger King India locations humorously read, “Even tomatoes need a vacation … we are unable to add tomatoes to our food,” attributing the absence of tomatoes to quality concerns. This move mirrors similar actions taken by other fast-food giants like McDonald’s and Subway, both of which have also eliminated tomatoes from their menus due to India’s food inflation reaching its highest level since January 2020.
Tomato Supply Crisis Impacts Food Industry: Burger King and Domino’s Respond, Consumers Affected
Burger King, a major burger chain in India with nearly 400 outlets, is the latest in a series of establishments adjusting their offerings due to the ongoing tomato supply crisis. Even in the United States, Domino’s Pizza has introduced a $0.60 pizza as a cost-effective option to cater to struggling consumers. This shift within the food industry coincides with a tomato supply crisis that has driven prices up by as much as 450%. This surge in prices is attributed to disruptions caused by monsoon rains, which have adversely affected crops and supply chains.
Customers have begun inquiring about the absence of tomatoes in their Burger King meals. The company’s response assures patrons that the Indian franchise maintains “very high standards of quality” and promises the return of tomatoes to the menu soon. While Restaurant Brands Asia (RESR.NS), the operator of Burger King in India, has not provided an official statement on the issue, the impact of rising food prices is becoming increasingly evident. Retail inflation data for July indicates a 37% year-on-year increase in vegetable prices. From onions and peas to garlic and ginger, the cost of essential items has surged significantly.
Restaurant Price Hikes Expected Due to Food Inflation Challenges
In light of these developments, experts such as Amnish Aggarwal, head of research at Prabhudas Lilladher in India, predict potential price hikes by restaurants if elevated prices persist. This situation poses challenges not only for foreign fast-food chains in India’s nearly $5 billion market, but also for the Indian government led by Prime Minister Narendra Modi, who faces a national election next year.
To tackle the supply crisis, India has taken steps to import tomatoes from Nepal and has introduced mobile distribution units to provide tomatoes at reduced rates across the nation. Social media posts have depicted long queues forming as people respond to these efforts.
