KFC, the global food services chain, announced on Wednesday that it has achieved a milestone of 1,000 outlets in India, marking one of its fastest-growing markets globally. Sabir Sami, the CEO of KFC global, stated in a release that the company is focused on expanding its presence in every market where it operates.
In India, Yum Restaurants is managed by three franchisees: Devyani International Limited and Sapphire Foods oversee KFC and Pizza Hut, while Taco Bell is operated by Burman Hospitality.
Having made its debut in India in 1995, KFC announced plans to create over a hundred thousand jobs across the country.
In India, Pizza Hut, another brand under Yum Restaurants, lags behind KFC and manages slightly over 800 stores in the country.
“KFC continues to perform well despite demand headwinds and overall slowdown, as it has been able to maintain store operating margins despite aggressive store expansion,” ICICI Securities wrote in a report earlier this week.
On the flip side, analysts note that Pizza Hut has faced elevated consumption stress compared to other sub-segments in the QSR sector, primarily attributed to intensified competition from regional players.
The majority of major QSR chains experienced sluggish sales in the September quarter, with consumers affected by inflation opting for lower-priced alternatives, amidst heightened competition at the hyper-local level.
In the September quarter, both KFC and Pizza Hut witnessed a year-on-year decline in same-store sales, with a 4% drop for KFC and a 10% decrease for Pizza Hut.
Nevertheless, companies in the sector haven’t scaled back their growth projections. ICRA, a credit ratings firm, indicated that the top five players in the domestic QSR industry are anticipated to incorporate 2,300 new stores between FY23 and FY25, involving an estimated capital expenditure of INR 5,800 crore.
KFC announced that it has increased the count of restaurants where speech and hearing-impaired employees are engaged, doubling the previous number.