Report: India has more KFC and Pizza Hut outlets than Canada and Mexico

It makes sense that American fast food chains like Pizza Hut and KFC would be more well-liked at home than abroad, in places like Canada and Mexico. However, they are…

By Nivedita Bangari

July 22, 2022

2 min read

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It makes sense that American fast food chains like Pizza Hut and KFC would be more well-liked at home than abroad, in places like Canada and Mexico. However, they are growing in nations like China and India.

China has more of these stores than Australia, however, India has more Pizza Hut locations than Australia. In terms of KFC locations, it is extremely comparable to Australia, demonstrating that the Indian public like the Colonel’s chicken and pizza.

There has been expanding across the board for quick-service restaurants, whether they provide pizza, burgers, or fried chicken. The industry itself saw this opportunity and increased the accessibility and cost of its products in tandem with trends and macroeconomic variables.

Devyani and Sapphire, the top two Indian franchises that manage these outlets in India, have both developed a scalable economic model. For starters, they cut the size of KFC and Pizza Hut stores by 40–45 percent each, lowering their investment and running costs.

According to the survey, the majority of KFC and Pizza Hut establishments are making a 20 percent profit, which suggests a payback period of fewer than three years.

Some of these stores also emphasize delivery, a sector that has prospered since the pandemic and is still producing results, shrinking stores, and improving returns.

The franchise owners have changed their menus to accommodate Indian tastes and budgets. The conversion of its rice bowl offering into a Biryani bucket was the most intriguing modification, as the earlier product failed to gain traction. This item is most popular in the south and has also gained popularity in the north and west.

To make the brand more accessible and appealing, they have consistently expanded combos and dinners over the past two to three years. Now, almost 47% of their sales come from meal combinations. Its average per customer (APC), which was between 750 and 800 three years ago, has also decreased to 500.

Additionally, it has introduced Momo Mia Pizza and San Francisco Style to cater to Indian tastes. According to the study, the former is already profitable and contributes in the high single digits to sales.