The 'vegetarian trend' in the nation has marred quick service restaurant (QSR) operator Devyani International for the drop in same-store sales growth (SSSG) at KFC India locations. Manish Dawar, CFO and full-time director of Devyani International, claims, "Whenever some festival is there we have seen a broader impact. Earlier around Ganpati Puja, it used to be West whereas now we have seen the impact of Ganpati Puja coming in North also. Similarly, earlier the Sawan impact used to be predominantly in the South, and now it has shifted to other regions also. The SSSG is predominantly impacted by vegetarian days and the geopolitical situation, which continues".
In the second quarter of FY25, KFC India's average daily sales were Rs 96,000, down from Rs 104,000 the previous quarter. At Rs 543 crore, the QSR chain, which is mostly known for its fried chicken, had a 2 per cent quarterly decline in revenue. In Q2 of FY25, KFC opened 28 new locations in India. As a result, as of the end of the second quarter of FY25, KFC had 645 locations throughout India.
Separately, Devyani International announced the expansion of its brand portfolio during the Q2 earning call, held this month. The Pizza Hut operator added three new lifestyle QSR brands- ‘tealive’ a Malaysian tea and beverage brand, ‘New York Fries (NYF)’, a Canadian quick service snacking brand, and ‘Sanook Kitchen’ a Singapore-based brand specialising in Thai and Asian cuisine.
"DIL is consolidating its strategy of Food on the go and House of Brands", Ravi Jaipuria, Non-Executive Chairman said. "We are supposed to pay to the brand owners is basically the royalty and the rest we manage on our own," Jaipuria added.
The consolidated revenue of Devyani International increased 49 per cent year over year to Rs 1,222 crore in the second quarter. Consolidated revenues for the first half of the year were Rs 2,444 crore. But as compared to the prior year, the company's profit fell by 99.95 per cent. Compared to a net profit of Rs 35.82 crore in Q2 FY24, the company reported a consolidated net loss of Rs 4.92 crore in Q2 FY25.
Pizza Hut's revenue climbed to Rs 185 crore during the quarter, up from Rs 182 crore in Q1 FY 25. In contrast, Costa Coffee had revenue of Rs 49 crore, which increased 7.69 per cent from Q1 FY 25. This increase was primarily brought about by the opening of new locations and good SSSG.