KFC India's daily sales plummet 6.4% per store in FY25; GenZ becomes new marketing focus

Quick service restaurant chain, KFC India, reported a 6.4% drop in its average daily sales per store in the fiscal year 2025.

According to a report by Devyani International Limited (DIL), operator of KFC India, the average daily sales of the QSR restaurant stood at Rs 94,000 per store, down from 105,000 in fiscal year 2024.

DIL attributed the drop to the bird flu in two markets and geopolitical tension.

However, the Indian arm of the US-based fast food chain clocked a gross profit of Rs 1,500 crore in the fiscal year 2025 as against Rs 1,420 crore in the previous financial year.

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The revenue of chicken-serving restaurant chain surged to Rs 2178.7 crore --up 6.6% year-on-year.

DIL is optimizing marketing campaigns and launching new recipes to woo new-age customers, especially Gen Z consumers, to scale up the profit. In FY25, "Disruptive pricing and multi-channel presence" were among the key factors in the improvement in profit, DIL stated in the annual report.

According to Devyani International, "KFC’s strong appeal among Gen Z is central to its growth strategy. During FY 2024-25, KFC continued to drive consumer engagement and excitement through an integrated marketing approach, focused on leveraging digital platforms and Gen Z cult collabs/influencers, to increase brand visibility and drive sales".

The QSR chain added 100 restaurants, taking the total count to 696 as of March 31, 2025.

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"New variations of rolls, featuring a range of national and international flavors, further drew new consumers to the KFC restaurants during the year," KFC India said.

Internationally as well, KFC expanded its footprint. DIL Chairman Ravi Jaipuria said that the global fast food chain opened 18 KFC stores in Thailand.

"In Thailand, we scaled our footprint to 306 KFC outlets, capitalizing on favorable consumer trends, high poultry consumption, and rising demand for quality QSR offerings".

"We remain optimistic about Thailand’s long-term strategic contribution to our portfolio," Jaipuria added.

DIL is Yum’s franchisee for KFC in India and holds franchise rights in Thailand, Nepal, and Nigeria through its subsidiaries. It operates 1,060 KFC outlets across the three countries.

DIL reported a 39% year-on-year revenue increase, reaching Rs 4,951 crore, driven by strong store expansions and improved core brands' performance. However, despite the revenue growth, the company posted a net loss of Rs 6.9 crore due to rising costs related to its rapid store expansion and increased expenses in materials and employee benefits in FY25.