Devyani International, who manages Hut pizza and KFC restaurants in India, recorded a collapse of almost 88% profit from the first quarter on Wednesday, since he increased the advertising to mount the question that remained slow for months.The Yum Brands franchisee recorded a net profit of 36.9 million rupees ($ 420,920.55) for the quarter closed on 30 June, compared to 301.06 million rupees of the previous year.
The famous fast food chains in India have struggled to grow the average daily expenditure since urban customers hold their wallets between high living costs and growth of weak wages, despite facilitating inflation.
Even the partners in Yum franchisee, Devyani and Sappy Foods, who both manage pizza and Kfc in India, also turned to offer heavy discounts on meals among the promotional launches. For the quarter, Devyani offered nine fried chicken pieces for 299 rupees, in an agreement called “Epic Savers”. He also offered two contours and a free Pepsi bottle with a medium -sized thin crust pizza in his pizza restaurants.
However, the average daily expenditure dropped to 98,000 rupees from 104,000 rupees a year ago in Kfc Chains and 33,000 rates of 36,000 rupees in Devyani’s pizza restaurants.
“While the macro short -term factors have led to a phase of soft consumers, we see a better perspective for the industry in the coming time,” said the non -executive president Ravi Jaipria in a note.
The revenues of the operations increased by 11.1% on an annual basis to 13.57 billion of rupees, benefiting from a counting of restaurants that was higher than 300 years to year, including the addition of the “Biryani by Killo by Killo recently acquired. However, the lowest margins weighed profitability.
The basic profit margins contracted 15.1% from 18.3% of a year earlier, said the company. ($ 1 = 87,6650 Indian rupees) (Report by Ananta Agarwal in Bengaluru; assembly of Harikrishnan Nair and Sonia Cheema)
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