Leading QSR brands such as KFC and Burger King have reported strong performance in terms of same-store sales growth in the March quarter, aided by better demand trends due to GST rationalisation as well as sharper focus on value offerings. At the same time, QSR chains remain bullish on store expansion in FY27.
Same store sales growth measures revenue growth only of established stores that were operational for a specified period of time.
Speaking on an earnings call, Manish Dawar, President & CEO, Devyani International said, “KFC (India) delivered a positive SSSG (Same store sales growth) of 4.9 per cent for the March quarter, the strongest performance in the last 14 quarters, reaffirming both the resilience of the brand and the long-term opportunity in the market. This momentum translated into nearly 15 per cent year-on-year growth for KFC, with Q4 revenues of ₹586 crore.”
The company’s management also said that it has begun sharply focusing on tailoring offers, price points and promotions to make sure dine-in consumers are attracted to the outlets. The company plans to add 100-110 net new outlets of KFC in FY27.
Consistent growth
Rajeev Varman, Whole-time Director and Group Chief Executive Officer, Restaurant Brands Asia Ltd said, “Same-store sales growth for Burger King India of 6.3 per cent in March quarter marks our highest growth over the last 12 quarters. Our supply chain strategy along with menu innovation, digital initiatives and energy efficiency measures has resulted in clear outperformance.”
The restaurant players said it saw consistent growth across dine-in and delivery channels in the March quarter. The company said it remains focused on adding 60 – 80 new restaurants every year and added over 68 new stores in India in FY26.
Good start
Meanwhile, Westlife Foodworld Ltd, which operates McDonald’s outlets in West and South India, reported same-store sales growth of 1.5 per cent for the March quarter while overall topline grew 9 per cent year-on-year.
Akshay Jatia, President & Chief Executive Officer, Westlife Foodworld Ltd told investors, “ What is particularly reassuring is the underlying improvement in footfall trend with positive growth all three months of the quarter. Similar momentum is continuing into April as well, setting the base for a good start to the new fiscal year. Going forward, we plan to further accelerate our expansion by opening 60 plus restaurants annually with all new stores fully equipped with digital modern design and McCafes, reflecting our confidence in the strength of our industry and the opportunity that lies ahead.”