KFC India's Revenue Mix Shifts Toward Off-Premise as Store Expansion Accelerates

"Q2 saw perhaps the most important policy development for consumers and the retail industry with the transition to GST 2.0 — a historic move to simplify and harmonize the GST framework to a 2-tier structure. While it's still early to assess the results of this transition, the initial signs are encouraging."

"The impact of the change has been very minimal on the QSR category and our business. We have already passed on the benefits of reduced input costs to our consumers. Overall, GST 2.0 is a welcome move to broaden the consumption story in India."

The widening gap between store growth and falling dine-in share signals a strategic transition in KFC's unit economics. As newer stores open in lower-traffic micro-markets or delivery-led neighborhoods, the business becomes increasingly reliant on off-premise channels for throughput.

While this supports scale, delivery-heavy revenue mixes come with higher aggregator commissions and weaker dine-in margins — raising potential pressure on profitability unless offset by operating leverage and menu engineering.