India’s quick-service restaurant (QSR) sector is witnessing an unprecedented surge in mergers, acquisitions and private equity investments, driven by rising consumer demand for dining out and food delivery, and growing investor confidence in the sector’s long-term growth potential.
The latest and most significant development is the merger of Devyani International and Sapphire Foods India, franchisees of global brands such as KFC and Pizza Hut. Effective April 1, the merger will create India’s largest single QSR entity, operating more than 3,000 outlets across the country. The consolidation underscores the sector’s shift towards scale, operational efficiency and stronger market positioning.
The deal activity extends well beyond large multinational-backed chains. In recent weeks, Wow! Momo Foods raised ₹75 crore in fresh funding led by veteran investor Madhusudan Kela of Singularity AMC. Private equity firm Vixar (formerly Arpwood Partners) acquired a significant minority stake in dessert and waffle chain The Belgian Waffle Co for about ₹770 crore, according to media reports. Separately, Everstone Capital-backed Subway India is in discussions to raise ₹200–250 crore from growth investor Playbook Partners, while ChrysCapital has acquired an 85% stake in premium bakery brand Theobroma.
Investor appetite for India’s broader food and snack ecosystem is also intensifying. US-based private equity firm L Catterton recently acquired a minority stake in Haldiram Snacks Food, adding to a growing list of marquee investors in the iconic Indian brand. This follows a major transaction last year in which Temasek, IHC and Alpha Wave Global collectively bought over a 10% stake in Haldiram at a reported valuation of $10 billion. The group is also reportedly exploring the launch of US sandwich chain Jimmy John’s in India, signalling deeper forays into Western-style QSR formats.
Industry executives and bankers attribute the deal frenzy to strong structural tailwinds. Rising disposable incomes, rapid urbanisation, the spread of food aggregators, and the shift from unorganised to organised food services are encouraging both domestic and global investors to back scalable QSR platforms. However, while interest remains strong, private equity firms are becoming more cautious on valuations, with several negotiations reportedly stalling over pricing expectations.
Experts note that operational discipline, brand loyalty and supply chain efficiency are emerging as critical differentiators. Well-managed QSR businesses are increasingly being viewed as institutional-quality assets, supported by favourable GST reforms and improving consumption trends.
According to industry estimates, India’s food services market stood at around ₹6 lakh crore in FY25 and is expected to grow sharply over the next few years. The National Restaurant Association of India projects the market to reach ₹7.76 lakh crore by FY28, driven by younger consumers, increased dining-out frequency and stronger last-mile delivery infrastructure. Organised QSRs and cloud kitchens are expected to outpace overall market growth, reinforcing India’s position as one of the most attractive global destinations for foodservice investments.