KFC has achieved a significant milestone by reaching a store count of 1,000 outlets in India, solidifying its position as one of the fastest-growing markets globally. The company, which made its debut in India in 1995, is set to add over 100,000 jobs across the country.
Yum Restaurants in India, overseeing KFC operations, is managed by three franchisees: Devyani International Limited, Sapphire Foods, responsible for KFC and Pizza Hut, and Burman Hospitality, which operates Taco Bell. KFC’s global chief executive, Sabir Sami, expressed the brand’s commitment to growth in every market in which it operates.
While KFC celebrates this accomplishment, its counterpart, Pizza Hut, also under Yum Restaurants, operates a little over 800 stores in India, trailing behind KFC’s impressive store count.
Despite facing demand headwinds and an overall economic slowdown, KFC has maintained strong performance, sustaining store operating margins amidst aggressive store expansion, according to a recent report by ICICI Securities.
In contrast, Pizza Hut has encountered higher consumption stress within the Quick Service Restaurant (QSR) sector due to heightened competition from regional players, leading to a notable decline in same-store sales.
The broader QSR industry witnessed sluggish sales in the September quarter, with consumers opting for lower-priced alternatives amidst inflation and intensified hyper-local competition. KFC and Pizza Hut reported a 4% and 10% year-on-year decline in same-store sales, respectively, during this period.
Despite these challenges, growth forecasts for the sector remain optimistic. Credit ratings firm ICRA anticipates the top five players in the domestic QSR industry to add 2,300 stores between FY23 and FY25, with an estimated capital expenditure of Rs 5,800 crore.
Highlighting its commitment to diversity and inclusivity, KFC also announced that it has doubled the number of restaurants operated by speech- and hearing-impaired employees, showcasing a dedication to fostering an inclusive work environment.