KFC logs 2% decline in India sales growth in Mar qtr

US-based quick service restaurant chain Yum! Brands Inc on Wednesday said its brand KFC in India posted a decline of 2 per cent in terms of system sales growth for the quarter ended March 2020.

System sale is a terminology used in franchising industry to assess the growth of a franchised brand.

While,the business of its Pizza Hut division in the country saw 6 per cent degrowth in terms of system sales during the January-March quarter due to COVID-19 outbreak and subsequent lockdown in the last two weeks.

The Indian market contributed around one per cent of the global business of both the QSR brands KFC and Pizza Hut, said a first quarter earning report of Yum! Brands Inc.

While commenting on the performance of KFC India, the company said the business was impacted due to lockdown.

The quarter ending March (Q1 2020) recorded a (-2 per cent) system sales growth for India and area countries with subdued growth in March and softness seen due to the lockdown on account of COVID-19, said KFC India Managing Director Samir Menon.

The company continues to operate around the ongoing COVID-19 pandemic with its delivery business only amidst the lockdown situation in the country complying regulatory directives.

We have implemented stringent hygiene and safety standards across all restaurants. In addition, we have rapidly put in place operational protocols and services like contactless delivery to ensure customers have access to their KFC favourites within a safe environment."