The Indian state of Maharashtra has suspended the licenses of four Domino's (DPZ.O) outlets after reporting grease residue in pizza-making machines and insect infestations, the latest move in an intensifying crackdown by food regulators.
The license of one Pizza Hut store was also suspended as many products used were found to lack expiry dates, according to a note from the state's Food and Drug Administration about this week's operation that was shared with Reuters late on Thursday.
Jubilant FoodWorks (JUBI.NS), which operates Domino's outlets in India, declined to comment, and Pizza Hut franchisee Sapphire Foods (SAPI.NS) did not respond to a Reuters request for comment. Domino's Pizza Inc. (DPZ.O) and Yum Brands (YUM.N), which owns Pizza Hut, did not immediately respond to requests for comment.
In recent weeks, India's federal food regulator has cracked down on labelling by companies including PepsiCo and Diageo that it says breaches rules, while also cancelling many food business licenses over poor hygiene.
Maharashtra, home to Mumbai, has seen its new food safety chief, Tukaram Mundhe, conduct raids and shut popular eateries, making him a social media sensation.
Many Indian roadside food and local restaurants have a reputation for poor food quality. On Tuesday alone, Maharashtra food officers inspected more than 100 outlets, and issued "improvement notices" to 95 of them.
Mundhe's department also inspected outlets of Domino's and Pizza Hut, foreign brands which have a reputation for maintaining stricter safety and hygiene protocols.
The government department said three Domino's outlets in Mumbai and one in another city lacked proper pest control.
"The administration has a strict stance on the quality of food items," Mundhe said in Thursday's note.
Footage posted online by Indian media outlets appeared to show at least one Domino's outlet's pizza oven containing heavy rust and a buildup of food and grease.
Over the years, Domino's and Pizza Hut have become popular, with outlets expanding fast into India's smaller cities. Domino's is also India's largest international fast-food and pizza chain, with around 2,400 outlets.
