kfc: KFC reaches 1,000 stores in India; to add a lakh jobs

Food services chain KFC has reached a store count of 1,000 outlets in India, among its fastest growing markets worldwide, the quick service chain said Wednesday. KFC global chief executive Sabir Sami said in a statement that the chain is looking to grow “in every market it operates.”

Yum Restaurants in India are operated by three franchisees – Devyani International Limited and Sapphire Foods which operate KFC and Pizza Hut, and Burman Hospitality which operates Taco Bell.

KFC, which debuted in India in 1995, said it will add over a lakh jobs across the country.

Yum Restaurant’s other brand in India, Pizza Hut, however, trails KFC and operates a little 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.

Pizza Hut, in contrast, has witnessed higher consumption stress versus other sub-segments in the QSR sector due to increased competition from regional players, analysts said.Most large QSR chains reported sluggish sales in the September quarter, as inflation-hit consumers downtraded to lower-priced alternatives, and intensified hyper-local competition.Both KFC and Pizza Hut reported year-on-year same store sales decline by 4% and 10% respectively in the September quarter.

However, companies in the sector have not tempered growth forecasts. Credit ratings firm ICRA said the top five players in the domestic QSR industry are expected to add 2,300 stores between FY23 and FY25, with an estimated capital expenditure of Rs 5,800 crore.

KFC said it has doubled the number of restaurants operated by speech and hearing-impaired employees.

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