KFC cooks a ₹99 recipe for winning new diners

New Delhi: Value meals priced at ₹99 are becoming central to KFC operator Sapphire Foods' strategy to revive demand, with the company shifting its focus from getting existing customers to visit more often to attracting millions of first-time consumers.The strategy appeared to pay off in the June quarter, as Sapphire Foods swung to a consolidated net profit of ₹12.7 crore, compared with a loss of ₹1.8 crore a year earlier.

Revenue from operations rose 8% year-on-year to ₹757.4 crore, driven by strong growth in KFC India, where same-store sales grew 8% and restaurant EBITDA margin expanded to 18.6%.But beyond the quarterly numbers, the company has outlined a longer-term shift in strategy.

Rather than relying on repeat purchases from existing customers, Sapphire said future growth will come from expanding the consumer base."At the core of future-proofing growth lies one fundamental belief: expanding consumer penetration by attracting new users," the company said in its FY26 annual report.The company estimates that around 40-45 million consumers eat at KFC annually and believes this can more than double to over 100 million over the next five years.

To achieve this, it has rolled out value offerings tailored to different markets, including the ₹99 Krisper Meal in North and West India and an "abundant meal" platform in more developed southern markets.

"This has driven new consumer walk-ins and contributed to 4% SSSG in the January–March 2026 quarter, the highest in 14 quarters," Group CEO Sanjay Purohit said in his letter to shareholders.Sapphire said the strategy helped drive transaction growth during the June quarter.

KFC India delivered 12% year-on-year transaction growth, while average daily sales climbed 8%.

The company attributed the performance to value-led innovations, stronger execution and an improved mix of dine-in and takeaway orders."In KFC, we have sharpened our approach to this agenda through separate marketing and value interventions in evolving and more developed chicken eating markets & we are beginning to see encouraging results," the company said.The company believes India's chicken category remains significantly underpenetrated, giving organised chains room to expand their customer base.

Chicken and pizza together account for nearly 32% of India's organised QSR market, which Sapphire estimates will grow from ₹499 billion in FY25 to ₹1.5 trillion by FY30, making it one of the fastest-growing segments in food services.Sapphire, one of Yum Brands' largest franchisees, operates 575 KFC and 341 Pizza Hut restaurants across India and Sri Lanka, taking its total network to 1,052 outlets at the end of FY26. ...