Restaurant India News: Sapphire Foods India Shifts KFC to Permanent Value Pricing to Boost Footfall

Sapphire Foods India is introducing a permanent value-pricing strategy at KFC outlets in India to increase customer traffic amid weak demand. Instead of short-term discounts, the company is rolling out lower-priced burger meals, budget combos, and regular buy-one-get-one offers on chicken buckets. This pricing approach is now becoming a long-term part of the brand’s strategy rather than a limited-time promotion.

Sanjay Purohit, CEO said the company is building a “permanent value layer” to attract more customers into stores. The strategy was first tested in about 150 outlets late last year, expanded to 200 stores, and is now available in most KFC locations across India, except Tamil Nadu where demand remains stronger.

The company is focusing on increasing footfall and sales volumes, even if it impacts margins in the short term. Most of these value offers are being promoted through dine-in and takeaway channels, which contribute over half of total sales. Some supplier support is also helping reduce the pressure on profits.

Meanwhile, Pizza Hut, also operated by Sapphire Foods, continues to face slower growth and weaker sales. The pricing shift comes as the company prepares to merge with Devyani International in an all-share deal. The combined business will have around 3,000 outlets and is expected to benefit from better scale, improved supply chains, and cost savings.

The merger is likely to be completed in the next 15 months, could generate significant operational efficiencies and strengthen the company’s position as the largest franchise operator for KFC and Pizza Hut in India.