Devyani International's Bold Franchise Expansion Amid Fiscal Challenges

Devyani International Ltd reported a net loss but revealed its strategic expansion plans, securing master franchise rights for TeaLive, New York Fries, and Sanook Kitchen. The firm aims to drive growth by broadening its portfolio, despite reporting a loss of Rs 4.92 crore in the recent quarter.

Devyani International Ltd, franchisee of popular brands Pizza Hut, KFC, and Costa Coffee in India, has disclosed a consolidated net loss of Rs 4.92 crore, as noted in a recent regulatory filing. A year ago, the quick service restaurant operator had reported a profit of Rs 35.82 crore during the July-September quarter.

Despite the fiscal setback, the company continues to expand its operations, with a 49.13 percent increase in revenue, reaching Rs 1,222.15 crore. Moreover, Devyani has secured master franchise rights for new quick service restaurant brands—TeaLive, New York Fries, and Sanook Kitchen—aiming to diversify its offerings and sustain its growth strategy.

Chairman Ravi Jaipuria emphasized the potential appeal of these new brands to younger demographics, offering handcrafted teas, fresh-cut fries, and authentic Asian cuisine. With 85 new store openings in the recent quarter, Devyani International remains commitment to its expansion plans, with a clear trajectory towards reaching 2,000 stores by FY25.

(With inputs from agencies.)