Sapphire Foods opens its 600th KFC restaurant in India, and per-store numbers show why calibrated expansion earned it more profit per outlet than Devyani.
India’s quick service restaurant market was estimated at about INR 25,900 crore when Popeyes launched in 2022, and operators still call the country deeply underserved.
Within it, Domino’s operator Jubilant, McDonald’s franchisee Westlife and Burger King compete with KFC’s two franchisees, Sapphire Foods and Devyani International, who drive its India expansion.
Against this backdrop, Sapphire has opened its 600th KFC restaurant in India.
Vikrant Vohra, President and CEO, KFC, Sapphire Foods, said on LinkedIn, “600 is a milestone, not a finish line.”
The journey began in 1995 when KFC entered India; Sapphire, was formed in 2015 with private equity backing, grew from 209 KFC outlets in June 2021 to 600 today.
That growth shows in revenue: Sapphire’s KFC India earned INR 2,114 crore in FY26, and Q1 FY27 revenue rose 17% with same-store sales up 5%.
Devyani, the other franchisee, runs 794 outlets, about 200 more, yet its KFC India revenue was INR 2,374 crore in FY26, only 12% higher.
Per store, Sapphire earned about INR 4 crore against Devyani’s INR 3 crore, translating into estimated restaurant profit of INR 64 lakh versus INR 52 lakh.
The reason is calibrated pacing: Sapphire adds 60 to 80 KFC stores yearly, rolls out kiosks across 75% of its estate and has trimmed discounting, protecting sales per store.
Devyani’s daily sales per KFC store slid from INR 109,000 to INR 83,000 as stores grew 36%, whereas Sapphire limited its slide to about 12% over a similar expansion.
Challenges remain: delivery is 43% of Sapphire’s sales and squeezes margins, while rising energy costs and 2% price hikes test price-sensitive customers.
China shows the runway: KFC entered in 1987 and has 13,789 stores there against about 1,400 in India, helped by small-town formats, coffee modules and drive-thru pickup.
With the Devyani merger due by FY27 end, Sapphire’s discipline can help lift the combined chain towards INR 110,000 daily sales; chicken lovers can expect more outlets, better value.
Editor’s Note
Fried chicken retailing carries three structural burdens: cold-chain dependent supply, energy-hungry kitchens, and delivery commissions that eat into every order.
China hints at the way out: franchise-led growth and add-on occasions, with new stores expected to pay back in two to three years.
India’s answer will be compact boxes, tight cost discipline and everyday value that does not erode margins.
India’s appetite for chicken is already proven; with patient capital and operational rigour, this category can still grow several times over.
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