The company posted a consolidated net loss of Rs 21.9 crore for Q2 FY26, compared to a marginal profit of Rs 0.17 lakh in the same period last year. Revenue from operations, however, rose 12.6% year-on-year to Rs 1,377 crore, driven by continued network expansion. During the quarter, Devyani added 263 new stores, taking its total outlet count to 2,184.

Operational metrics reflected sustained headwinds. Same-store sales fell 4.2% for KFC and 4.1% for Pizza Hut, underscoring weak discretionary spending and heightened competition in the QSR segment. EBITDA margin contracted to 14.1%, compared to 16.3% in the previous year, impacted by elevated input costs, increased promotional expenditure, and softer sales momentum.

Management noted that the recent GST rate cuts had a “very minimal” impact on consumer demand within the category. Industry analysts attributed the subdued results to a slowdown in urban consumption, rising operational expenses, and competitive discounting across quick-service formats.

While the company continues to pursue footprint expansion, analysts highlight the need for sharper cost discipline, improved same-store performance, and a calibrated approach to promotional spending to sustain profitability in an increasingly competitive market environment.

The post Devyani International reports muted Q2 performance; stock declines 3% appeared first on Business of Food.

Educational Background and Early Career

Srivastava holds a B.Sc. in Hospitality & Hotel Administration from IHM Lucknow and an MBA in Retail & Merchandising Management from BIMTECH. His career commenced in the hospitality industry, where he gained foundational experience in operations and customer service.

Professional Trajectory

His initial roles included positions at KFC India, where he managed real estate and expansion efforts, and at Starbucks India, where he contributed to market research, store strategy, and layout planning. Srivastava’s tenure at Chaayos and Jubilant FoodWorks further honed his skills in business development, real estate strategy, and multi-brand expansion.

At Raymond Limited, Srivastava led business development and real estate expansion across various brands, including The Raymond Shop and Park Avenue. This experience broadened his understanding of retail dynamics beyond the food and beverage sector.

Devyani International’s Growth and Challenges

Devyani International has experienced significant growth, reporting a 39.2% year-on-year increase in revenue for FY25, totaling ₹4,951 crore. The company added 257 net new stores during the fiscal year, bringing its total to 2,039 outlets across India, Thailand, Nigeria, and Nepal. However, this expansion has been accompanied by challenges, including increased operating expenses and pressure on profit margins.

The company’s core brands—KFC, Pizza Hut, and Costa Coffee—have shown mixed performance. While Costa Coffee demonstrated strong momentum with a 30.8% revenue growth, KFC and Pizza Hut faced declines in same-store sales, indicating potential areas for operational improvement.

Strategic Focus Areas for Srivastava

In his new role, Srivastava is expected to focus on several key areas:

• Real Estate Optimization: Ensuring cost-effective lease agreements and efficient store layouts to improve profitability.
• Format Innovation: Developing smaller, delivery-focused store formats to adapt to changing consumer behaviors.
• Expansion into Tier II and III Cities: Identifying and capitalizing on growth opportunities in smaller cities to drive future growth.
• Brand Integration: Streamlining operations and aligning development strategies across Devyani’s diverse brand portfolio.

Akash Srivastava’s appointment as Chief Development Officer at Devyani International marks a strategic move to strengthen the company’s expansion efforts and operational efficiency. His extensive experience in real estate and business development positions him to address the challenges associated with rapid growth and to contribute to Devyani’s continued success in the competitive QSR industry.

The post Devyani International Hires Akash Srivastava as Chief Development Officer appeared first on Business of Food.

The growth was driven primarily by network expansion, with the number of outlets increasing from 179 in FY24 to 220 in FY25.

However, key operating metrics saw pressure. Gross margins declined slightly from 76.8% to 75.4% due to rising input costs, including coffee beans. Brand contribution margin dipped to 16.1% from 17%, while average daily sales (ADS) per store dropped from Rs. 33,000 to Rs. 27,000. This led to a slowdown in same-store sales growth (SSSG) from 8.7% to 4.1%.

Despite these challenges, DIL emphasized its commitment to aggressive expansion, targeting 40–50 new stores annually. Costa Coffee is currently among the brand’s top 10 global markets and is aiming to enter the top five within five years.

The company highlighted the rising demand for premium coffee in India, especially among millennials and Gen Z, as a key growth driver. The Indian café market is growing at 10–12% annually—twice the global average—with Costa focusing on high-traffic areas like airports and multiplexes to strengthen its presence.

Costa Coffee competes in India with other global players such as Starbucks, Tim Hortons, McCafé, and Dunkin’.

The post Costa Coffee India reports 31% revenue growth in FY25, expands store network appeared first on Business of Food.

In the second quarter of 2024, the food service brand added 54 new outlets, comprising 21 KFC, 3 Pizza Hut, and 30 Costa Coffee locations. The company’s international footprint also grew, with the total number of international stores reaching 363 after the addition of 10 new locations in the first quarter.

DIL’s operations extend beyond its core brands, encompassing various institutional businesses such as food courts and airport outlets. The company plans to focus on expanding these institutional ventures in the upcoming quarters.

Following its public listing in August 2021, DIL reported a net profit of Rs 22.43 crore for the quarter, a significant turnaround from the net loss of Rs 1.6 crore recorded in the same period the previous year.

In a strategic move to further diversify its portfolio, DIL has recently collaborated PVR INOX Food Court Ltd. in partnership with multiplex operator PVR Inox, which holds a 51% stake in the new entity. The venture will operate food courts under the brand name Treat Junction, located in shopping malls across India

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