KFC's India operator Sapphire Foods India Ltd. is pushing customers to dine in and order takeaway instead of relying on delivery, as in-store sales stabilise.
The company is using pricing and meal offers that are available only in restaurants to bring customers back inside. Dine-in and takeaway accounted for 57% of sales in the quarter, remaining unchanged from a year earlier, supported by value campaigns limited to these channels, the company said.
The shift marks a change from the pandemic years, when online delivery became the primary channel for eating out. As mobility normalised, chains relied on delivery platforms to sustain growth, but are now refocusing on in-store traffic to improve volumes and profitability.
The Shift Back Inside
The company said performance in dine-in and takeaway improved after a period of decline, with value-led campaigns helping stabilise the channel mix.
The improved mix was driven by campaigns that were available only through dine-in and takeaway, the Group's Executive Director and Chief Financial Officer Vijay Jain said.
The company is also expanding digital kiosks across stores, with 73% of restaurants now using them. These kiosks generate higher average spending compared to counter orders, supporting in-store sales.
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How KFC Is Pulling You In
Group Chief Executive Officer Sanjay Purohit said the company is focusing on customer recruitment through targeted pricing and marketing.
"This is not a promotion... this is a permanent value layer that we are building," Purohit said, referring to entry-level meal pricing. The strategy combines entry-level meals to attract first-time customers and higher-value offers in select markets to drive volumes.
The company said the approach is designed to convert "aware non-users", or consumers who know the brand but do not typically purchase.
What This Means For You
Sapphire Foods said transaction growth and same-store sales have improved as a result of these strategies, with value-led offers increasing footfall.
The company is prioritising customer additions and transactions, supported by higher marketing spends and pricing strategies aimed at driving store visits.
The shift suggests that in-store consumption is becoming a key driver of growth, supported by targeted pricing, marketing and technology-led ordering inside restaurants.
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