Competition bites into QSR growth as weak demand shadows expansion

SR companies continued to focus on value offerings

The quick-service restaurant (QSR) segment continued to be under pressure in the July–September quarter. Category leaders also pointed out that expansion within the segment is affecting demand.

 

Westlife FoodWorld, which runs McDonald’s in West and South India, and Sapphire Foods India, which operates a chunk of KFC and Pizza Hut outlets in the country, told investors after their earnings that the category is seeing increased competition.

 

“Private discretionary spending has been muted. That is the reason why the government, despite strong gross domestic product numbers, is still calling out very specifically that they need to do something to increase consumption