Restaurant India News: Sapphire Foods Slows Pizza Hut Expansion to Refocus on Core Performance

Sapphire Foods India Ltd., which runs Pizza Hut outlets across multiple regions in the country, has put a hold on opening new restaurants and directed its effort towards improving the performance of its existing stores. After years of steady expansion across cities, highways, malls, and neighborhood markets driven by India’s growing appetite for casual dining, the brand’s growth pace has slowed.

Although Pizza Hut remains one of the most familiar names in the quick service restaurant sector, their recent performance metrics reveal signs of a slowdown. Same-store sales dropped around 8% year-on-year and average daily revenue per outlet slipped from roughly ₹47,000 to ₹42,000 over the last reporting period. While the decline isn’t steep, it has led the company to take a more measured approach focused on strengthening current operations.

In a recent discussion with analysts, Sanjay Purohit, Whole-Time Director & Group CEO of Sapphire Foods, mentions, “There has been a struggle with Pizza Hut. Last year, we opened around 20 stores. This year, we are at a net negative. Until we see a meaningful revival in the brand and in same-store sales growth, we do not plan to add new outlets.”

The slowdown comes amid a phase where consumers are becoming increasingly selective about dining out, particularly in urban markets facing rising costs. For Pizza Hut, once defined by it's dine-in legacy, this means contending with delivery-led competitors offering greater convenience and sharper prices.

Sapphire Foods isn’t retreating from the brand; it’s realigning for sustainable growth. The company is focusing on improving unit economics, updating its menu and strengthening their customer value perception. The goal is clear: rebuild the core before scaling further. In many ways, this reflects a wider shift across India’s QSR sector, where even dominant players are re-evaluating what drives dining choices and spending habits in a more value-conscious market.