Sapphire Foods India Ltd, which operates KFC and Pizza Hut in India, is implementing a permanent value-pricing strategy at KFC to counteract weak consumer demand. CEO Sanjay Purohit emphasized that this is not a temporary promotion but a long-term approach to increase store traffic. The strategy features affordable burger meals, low-priced combos, and periodic buy-one-get-one offers, which have been tested in approximately 200 stores and are now available in most KFC locations, excluding Tamil Nadu where demand is stronger. This initiative is part of a broader plan to attract new customers and drive repeat orders through entry-level products in underpenetrated markets.

The company is also preparing for a significant merger with Devyani International Ltd, expected to close within 15 months, creating a combined entity with 3,000 stores and unlocking potential cost savings of ₹350 crore. Analysts predict that this merger will enhance operational synergies and strengthen sourcing efficiencies. For the March quarter, KFC reported a 4% increase in same-store sales, while Sapphire Foods recorded a revenue of ₹790 crore and a net loss of ₹12.6 crore. Meanwhile, Pizza Hut continues to face challenges, with a 6% decline in revenue and a 7% drop in same-store sales during the same period.