The QSR Crown Under Siege: Ankur Bisen on the Devyani-Sapphire Merger

Jubilant FoodWorks has long towered over India’s quick-service restaurant (QSR) sector, leveraging speed and relentless execution to build a consolidated topline of ₹8,142 crore in FY25. 

However, the recently announced merger between Devyani International and Sapphire Foods is set to transform the market into a battle between equals.

By combining the two largest franchisees of Yum! Brands (KFC and Pizza Hut) in India, the new entity will cross the $1 billion (₹8,600 crore) revenue milestone, operating over 3,000 stores.

The Knowledge Company’s Senior Partner, Ankur Bisen, views this consolidation as a turning point for the domestic food service industry.

This merger is less about combining similar businesses and more about building a sprawling F&B platform capable of unlocking ₹210–225 crore in annual synergies through unified technology, streamlined expansion, and centralized procurement.

While Jubilant continues to outperform many peers, its same-store sales growth (SSG) has begun to lose steam. 

Domino’s India recorded an SSG of 5% in Q3FY26, a significant drop from 9.1% in the previous quarter. 

As the Devyani-Sapphire combine closes the gap, industry analysts anticipate that Jubilant may press the “inorganic growth button,” exploring acquisitions of regional pizza chains to defend its market share.

A primary focus for the merged entity will be the turnaround of Pizza Hut, which has struggled with weak unit economics and same-store sales. 

By consolidating both KFC and Pizza Hut under one management structure and balance sheet, the “master franchisee” model aims to improve operating leverage and delivery speeds to counter weak consumer demand.

The Knowledge Company’s strategic advisory practice is dedicated to helping QSR brands and institutional investors navigate the complexities of India’s consolidating food service landscape.

• M&A and Integration Strategy: We assist clients in identifying synergy opportunities and navigating the operational challenges of large-scale F&B mergers.

• Operational Excellence: Advising on store format optimization and tech-enabled supply chains to drive profitability in a slowing market.

• Market Competitive Intelligence: Providing deep analysis of SSG trends and consumer discretionary spending to identify white spaces for expansion.

• Strategic Growth Consulting: Designing inorganic growth roadmaps for market leaders looking to defend their dominance against emerging challengers.

Is your brand positioned to thrive in the new, consolidated QSR landscape? 

Connect with TKC to turn market disruption into a strategic advantage.