After eleven consecutive quarters of decline in sales growth, fast-food chains KFC and Pizza Hut, both part of US-based Yum! Brands had reason to cheer in the July-September period. Earnings for the quarter show Pizza Hut and KFC reported a six per cent and 13 per cent sales growth respectively in India.
Analysts are interpreting this as early signs of the emergence of green shoots in domestic quick-service restaurants (QSRs), given Yum! Brands are the first to report its results every quarter. The company is not listed on Indian stock exchanges.
Arvind Singhal, chairman, Technopak, said that in the last few months, QSRs have been focusing hard on driving footfalls by pushing offers, discounts and innovations. Yum!, in particular, has been pushing Buy One Get One Free (BOGO) offers on its pizzas, marketing longer chicken burgers and KFC duo buckets aggressively in the past few months.
Price points have also dropped to as low as Rs 30 for a burger at KFC, said an Edelweiss report, lower compared with McDonald's (Rs 32), Burger King (Rs 35) and Wendy's (Rs 39).
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