Written By: Harsh Vardhan Singh

When Indians think of fast food, two names instantly come to mind: KFC and Pizza Hut. Their crispy buckets and cheese-loaded pizzas are more than meals; they’re cultural staples. In 2026, these brands don’t just serve food, they serve opportunity. Through Devyani International Limited (DIL), India’s largest franchisee for both icons, entrepreneurs and investors can now participate in the country’s fast-growing quick-service-restaurant (QSR) wave.Whether you’re planning to open a store or invest in DIL’s shares, this playbook walks you through every practical step, risks, rewards, and roadmaps included.

Why KFC and Pizza Hut Still Rule India’s QSR Market

The QSR sector in India has transformed into a ₹60,000-crore industry, expanding at 18-20% CAGR.

While many newcomers have entered the race, KFC and Pizza Hut continue to dominate because of four key factors:

• Brand recall:  Few global names enjoy such universal familiarity.
• Pan-India supply chains: Assured ingredient quality and consistent taste.
• Affordable luxury: Positioned between street food and fine dining, appealing to every generation.
• Digital adoption: Loyalty apps, Swiggy-Zomato tie-ups, and contactless delivery keep them relevant.

This dual franchise-stock opportunity is what makes Devyani International a magnet for investors in 2026.

Understanding Devyani International Limited (DIL)

DIL is the master franchise partner of Yum! Brands in India, operating KFC, Pizza Hut, and Costa Coffee.

As of 2025, it manages 1,800 + stores across India and Nepal, making it the country’s largest QSR operator.

Key Highlights:

• Parentage:  Part of the R J Corp group (which also owns Cream Bell Ice Cream and Varun Beverages).
• Business Model: Operates + franchises outlets, allowing sub-franchise partnerships under strict quality control.
• Stock Exchange Listing: NSE & BSE – Ticker symbol: DEVYANI.
• FY 2025 Revenue: ₹3,200 crore + and rising.
• Expansion Goal: 3,000 outlets by 2027.

In short, 

DIL = Yum  Brands India, making it the single gateway to both KFC and Pizza Hut.

The Franchise Opportunity Model

If you’re looking to enter food retail, a KFC franchise in India 2026 or Pizza Hut franchise through Devyani is among the most structured investments available.

Franchise Framework:

• Ownership: You operate the outlet, DIL provides branding, recipes, supply chain, and training.
• Revenue Split: Franchisees retain local sales revenue after paying royalties (4 – 6 %) and marketing contributions.
• Support: Site selection, staff training, POS systems, logistics – all centrally managed.
• Menu Innovation: Continuous product testing ensures nationwide consistency.

In essence, DIL removes operational chaos so investors can focus on execution and customer service.

Investment Requirements – KFC & Pizza Hut Franchises

Opening a KFC franchise in India 2026 or a Pizza Hut outlet under Devyani International demands both capital and operational commitment. The investment varies depending on the city, store size, and location type (mall, high-street, or standalone outlet).

KFC:

• The typical investment ranges between ₹1.2 crore and ₹2.5 crore.
• The ideal store size is around 800 to 1,200 square feet.
• The expected return on investment (ROI) period is between 3 to 5 years, depending on sales volume and rent costs.

 Pizza Hut:

• The investment usually falls between ₹80 lakh and ₹1.8 crore.
• The average store space required is 600 to 1,000 square feet.
• Franchisees can expect ROI within 3 to 4 years, provided steady revenue flow and delivery efficiency.

Expenses to Account For:

Franchise Fee:

• Paid upfront to Devyani International for brand licensing.
• Setup Costs: Interior design, kitchen equipment, signage, and POS systems.
• Working Capital: For day-to-day operations, staff salaries, and supply restocking.
• Royalties: Around 4% to 6% of total monthly sales.
• Advertising and Marketing Contributions: Roughly 2% of sales, pooled for national campaigns.
• Licences and Legal Costs: FSSAI registration, GST compliance, and local trade permits.

On average, most outlets recover their full setup cost within four years, given consistent customer engagement and strong delivery integration through platforms like Swiggy and Zomato.

Profitability & Return Potential

The average outlet margin stands between 15–20 % post-royalties.

What drives profitability:

• High Volume: Tier-1 cities witness heavy weekend traffic and online delivery orders.
• Low Menu Volatility:Chicken & cheese prices remain relatively stable.
• Digital Boost: Swiggy + Zomato deliveries contribute 35–45 % of total sales.
• Strong Brand Pull: Minimal local marketing expense required.

A franchise earns reputation and returns simultaneously making it one of India’s most stable QSR plays in 2026.

How to Apply for a Franchise in 2026

Franchise Bazaar and Devyani International simplify the process for aspiring partners.

• Step 1: Visit the official Devyani International franchise section or apply through Franchise Bazaar.
• Step 2: Submit a business proposal + city preference.
• Step 3: Screening based on financial strength and property location.
• Step 4: Brand orientation & agreement signing.
• Step 5: Training for management and kitchen staff.
• Step 6: Store setup and launch with marketing support.

The selection process is competitive but transparent  with preference for entrepreneurs passionate about operations and quality.

The Stock Play -  Owning a Slice of Devyani International

Not everyone can open a store, but anyone can own the brand through the stock market.

Devyani International is listed on NSE and BSE, giving retail investors direct exposure to India’s QSR boom.

Why the Stock Appeals in 2026:

• Consistent Revenue Growth: Annual increase of 25 % over three years.
• Diversified Portfolio: KFC, Pizza Hut, and Costa Coffee balance segments.
• Expansion Plan:Target of 3000 stores by 2027 boosts earnings visibility.
• Asset-Light Model: Higher cash flow efficiency compared to restaurant ownership.
• Brand Power: Global QSR names ensure steady footfall and delivery orders.

In short, if you can’t fry the chicken yourself, you can still own the kitchen that does.

Financial Performance Snapshot (2024–25)

Devyani International’s growth story over the last two financial years has been steady and inspiring, proving the strength of India’s organized QSR ecosystem. Between FY 2024 and FY 2025, the company continued to expand its presence and improve profitability across all three major brands  KFC, Pizza Hut, and Costa Coffee

Here’s a concise look at the company’s performance

• Revenue: ₹2,950 crore in FY 2024, rising to approximately ₹3,200 crore in FY 2025.
• EBITDA Margin: Improved from 21% to 22.5%, showing better operational efficiency.
• Net Profit: Increased from ₹170 crore in FY 2024 to ₹205 crore in FY 2025, driven by higher same-store sales.
• Store Count: Expanded from 1,500+ outlets to nearly 1,800, covering more tier-2 and tier-3 cities.

Market analysts project the company’s earnings per share (EPS) to grow between 18% and 22% annually, supported by menu innovation, tighter cost control, and continuous expansion. Devyani’s hybrid strategy combining physical store presence with digital delivery  is fueling both revenue stability and long-term investor confidence.

Why 2026 Is a Strategic Year for QSR Growth

Several economic and social factors align perfectly this year:

Consumption Surge: Young India’s eating-out frequency up 25 %.

• Digital Delivery Dominance: Online orders now 60 % of urban revenue.
• Tier-2 and Tier-3 Expansion: Cities like Surat, Indore, Nagpur drive new openings.
• Government Support: Ease-of-Doing-Business reforms simplify F&B licensing.
• Investor Sentiment: QSR stocks outperform broader indices due to predictable cash flows.

Together, these make 2026 a rare window for both franchise and equity entry.

Risks and Mitigation

Every opportunity carries challenges; the key is to prepare early.

Operational Risks (for Franchisees):

• Rising real-estate costs → choose semi-urban locations.
• Labour shortages → use central training modules offered by DIL.
• Ingredient inflation → negotiate supply contracts early.

Market Risks (for Stock Investors)

• Short-term volatility → QSR stocks move with consumer sentiment.
• Competition from local brands → KFC & Pizza Hut’s brand equity remains a moat.
• Regulatory changes → FSSAI and GST updates should be monitored.

Balanced research and discipline make these risks manageable.

Franchise vs Stock Investment- Comparative Outlook

For potential investors, the big question often is: Should I buy a franchise or invest in Devyani International’s stock? The answer depends on your goals, risk appetite, and engagement level.

Here’s how both opportunities differ and complement each other:

Franchise Investment:

• Requires a higher capital commitment, usually between ₹1 crore and ₹2.5 crore for KFC and Pizza Hut.
• Offers direct business control, where you manage daily operations, staff, and customer engagement.
• Providing active returns, your profit comes from sales, upselling, and efficient management.
• The risk level is moderate, depending on location and footfall.
• It’s a medium to long-term venture, with ROI typically realized over 3 to 5 years.
• Gives you hands-on business experience and brand-building exposure.

Stock Investment:

• Requires minimal capital  you can start investing with as little as ₹500.
• It’s a passive form of ownership, giving you no control over daily operations but exposure to company-wide growth.
• The risk is market-driven but spread across hundreds of stores.
• Suitable for both short-term traders and long-term wealth builders.
• Offers the chance to diversify your portfolio without the stress of running a business.

Interestingly, many seasoned investors choose to do both owning a franchise for regular income while holding Devyani’s stock for capital growth. This dual strategy aligns stability with scalable

Future Trends in India’s QSR Ecosystem

Smaller Store Formats: Compact “KFC To Go” and “Express Pizza Hut” models reduce rent burden.

• Menu Localization: Paneer Zinger & desi toppings win regional loyalty.
• Sustainability: Eco-packaging and waste recycling become mandatory.
• Tech-Driven Ordering: AI recommendations boost average bill values.
• Health Pivot: Grilled and air-fried menus target urban fitness customers.

Each trend adds fresh growth avenues for Devyani International franchise partners and shareholders alike.

Why Devyani International Fits the 2026 Investor Mindset

In an era when investors crave predictable returns and strong brand moats, DIL offers both.

• Franchisees gain operational independence under a trusted umbrella.
• Shareholders gain exposure to India’s expanding eating-out culture.
• Diversified Security gives multiple brands a shield against cyclical risk.
• Scalable Vision provides DIL plans aggressive entry into tier-2 towns and airports.
• It’s a rare case where the brand and the balance sheet work in sync.

Checklist Before You Invest

For Franchisees:

•  Secure prime location with parking and delivery access.
• Maintain 3–6 months of working capital.
•  Understand local consumer behaviour.
•  Adopt DIL’s digital ordering platforms.
•  Track monthly metrics – sales mix, order time, reviews.

For Stock Investors:

• Study annual reports and conference calls.
•  Monitor QSR sector valuations vs peers like Jubilant FoodWorks (Domino’s).
•  Hold through cycles - QSR profits compound over time.
• Diversify across consumer sectors to balance risk.

Preparation and patience remain your best ingredients for success.

Conclusion 

In 2026, India’s QSR industry is not just growing, it's maturing.

Devyani International stands at the center of this transformation, bridging franchise aspiration with stock-market innovation.

Whether you choose to serve crispy chicken from a storefront or own a piece of the company that does, you’re participating in a multi-billion-rupee growth story.

Both paths require commitment, but both lead toward India’s appetite for convenience and consistency.

Some build brands. Others build empires through them.  

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.