2018 promises healthy appetite for sales growth at QSR chains

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Quick service restaurants (QSR) have withered demonetisation and GST blues in 2018 having managed to report a healthy sales growth.

According to a Mint report, Jubilant FoodWorks Ltd, which runs Domino’s Pizza and Dunkin’ Donuts outlets in India, Westlife Development Ltd, owner of Hardcastle Restaurants Pvt. Ltd that operates McDonald’s outlets in west and south India and Indian entity of Yum! Brands Inc., owner of fast food chains KFC, Pizza Hut and Taco Bell saw sales growth in the first half of 2018.

Jubilant FoodWorks reported same-store sales growth—a measure of sales at outlets that have been open for at least a year—at a six-year high of 26.2 percent. This resulted in the company’s profit for the June quarter to more than triple.

Similar was the trend for Westlife Development Ltd, owner of Hardcastle Restaurants that reported a six-year high at 24.6 percent and Yum! Brands reported around 20 percent sales growth (store level) at its KFC and Pizza Hut outlets in India during the first six months of 2018.

Demand revival will likely spell a good second half of the year for QSR chains. Brokerage firm Philip Capital maintains a positive stance on quick serving restaurants (QSR). “We reiterate our positive stance on the QSR sector based on reduction in GST rate and massive funding received by online food tech players (Swiggy, Zomato).”