Half a pizza in installments: The business tactic in Iran to survive the collapse
The cost of living in Iran is breaking records following the military conflict, the naval blockade, and inflation that has crossed the 80% threshold. Facing a sharp drop in purchasing power, companies and businesses in the country are forced to turn to creative marketing methods, selling half-portions, and deferred payments via "buy now, pay later" to survive.
Companies and businesses in Iran have recently been turning to "buy now, pay later" sales methods and other creative marketing tactics to attract consumers, as the cost of living in the country spirals out of control following the tensions and fighting in recent months against Israel and the USA.
In recent weeks, the streets of Tehran have been flooded with billboards from companies like the Iranian SnappPay, offering consumers deferred payments on a wide range of products and services - from clothing and mobile phones to gold jewelry, vacations, and trips. Even delivery services, including the delivery arm SnappFood, have begun to run ads offering half-portions of pizzas and traditional stews like Ghormeh Sabzi, in attempts to adapt to the emptying pockets of the residents.
These sales tactics are another sign of the deepening economic distress in the country, where the war and the American naval blockade on the ports have exacerbated inflation and pushed even basic expenses out of reach for many citizens. Even before the outbreak of the conflict at the end of February, Iranians had been struggling with years of price hikes, international sanctions, and failed economic management that eroded the standard of living. However, the disruption caused by the war and the struggle that erupted in its wake over control of the Strait of Hormuz have worsened the trend. The annual inflation in the country has remained above 80 percent for three consecutive months, while the local currency, the rial, has plunged to a series of new historical lows.
Economic experts in Tehran explain that selling in installments without interest in an economy suffering from high inflation means that the merchant ultimately receives a sum lower in real value, as the currency's value is eroded over the months. Despite this, many businesses are forced to sell goods even at a loss, because sales volumes have dropped sharply. At the same time, the United States is trying to increase economic pressure on the regime to force it to surrender, reopen the Strait of Hormuz, and reach an agreement to end the war. US President Donald Trump even noted that Iran is in a very bad situation, referring to the massive inflation and the country's lack of cash.
The economic damage is supported by physical destruction. Before the ceasefire recorded in April, the US and Israel bombed steel production plants and petrochemical facilities in Iran, damages that the regime estimates at about 270 billion dollars. Last month, Washington reimposed a naval blockade on Iran's ports after an interim agreement to open the Strait of Hormuz - through which about a fifth of the world's oil and liquefied natural gas supply passed before the war - collapsed completely.
Over the years, the Iranian regime has invested efforts in creating what it calls a "resistance economy," aimed at producing economic independence that would allow it to withstand sanctions, isolation, and military conflicts - this even though it leads to economic depression and growing public resentment. The country's leadership and military command are betting that their high pain threshold will allow them to come out on top in the confrontation with Washington, and that the high global energy prices resulting from the closure of the strait will eventually force the American administration to retreat. However, President Masoud Pezeshkian, who oversees the ongoing civil administration, has warned of the heavy price the public is paying, noting that his main concern is not another American attack, but the state of the residents' livelihood and economy.
The economic distress is what led to the outbreak of the wave of mass protests against the regime in December and January, which shook the country for weeks until it was suppressed with an iron hand. Although no signs of new civil unrest have been recorded since the start of the war, experts estimate that the change in consumption patterns indicates that the public is preparing for a prolonged period of hardship. The Iranian public is selling its gold holdings on a large scale to finance basic living expenses, alongside a decrease in the consumption of staple goods - data that indicates resignation to the ongoing decline in the standard of living and income.
To ease the pressure, the government introduced a food stamp program that grants about 5 dollars a month to 80 million citizens. However, the galloping inflation quickly eroded the value of these stamps, and the administration is now planning to increase the aid amount by cutting support for higher-income brackets.
Meanwhile, in the urban markets in the old middle-class neighborhoods, a drop in the number of customers from 1,200 to only about 400 per day has been recorded. At the same time, the phenomenon of cheap food trucks is taking hold across the cities: traditional foods like lamb kebab have disappeared from the menus of many families due to their high prices, and have been replaced by discounted portions of grilled liver, and popular falafel shops are also reporting the loss of about half of their customers due to the sharp rise in raw material costs.
