Sapphire Foods, the largest franchisee of KFC and Pizza Hut in India and Sri Lanka, is betting on affordable value meals to bring millions of first-time customers into its restaurants, marking a strategic shift from driving repeat visits to expanding consumer penetration.
The strategy is already showing results. The company reported a consolidated net profit of ₹12.7 crore in the quarter ended June 2026, compared with a ₹1.8 crore loss a year earlier. Revenue from operations rose 8% year-on-year to ₹757.4 crore, supported by strong momentum at KFC India, where same-store sales grew 8% and restaurant EBITDA margins improved to 18.6%.
Rather than relying on existing customers to increase visit frequency, Sapphire is focusing on widening its customer base. The company estimates that around 40–45 million consumers dine at KFC annually and believes this figure can more than double to over 100 million within the next five years.
To achieve this, Sapphire has expanded its value-led offerings, including the ₹99 Krisper Meal in North and West India, while introducing an “abundant meal” platform in the more mature southern markets. The company said the differentiated pricing strategy is designed to appeal to regional consumer preferences and encourage trial among new diners.
Group CEO Sanjay Purohit said the value-focused approach has already begun delivering results, contributing to the strongest same-store sales growth in more than three years. During the June quarter, KFC India recorded 12% year-on-year transaction growth, while average daily sales increased 8%, driven by higher customer footfall, value innovations and a healthier mix of dine-in and takeaway orders.
Sapphire believes the long-term opportunity remains significant as India’s organised quick-service restaurant (QSR) market continues to expand. According to the company, the organised QSR market is expected to grow from ₹499 billion in FY25 to ₹1.5 trillion by FY30, with chicken and pizza together accounting for nearly one-third of the market.
With a network of 1,052 restaurants, including 575 KFC and 341 Pizza Hut outlets across India and Sri Lanka at the end of FY26, Sapphire is positioning affordable pricing as a key lever to capture the next wave of growth in India’s rapidly evolving food service industry.