Experts believes that the strategy has now evolved from rapid footprint growth to quality of growth | Photo Credit: REUTERS

After a period of hyper expansion post COVID-19, Indian Quick Service Restaurant (QSR) chains are stepping off the gas in terms of new store additions.

According to data from company financials, FY26 saw major Indian QSR chains record their lowest annual net new store additions in the past three financial years.

Jubiaint Foodworks, the country’s largest quick service chain and operator of Domino’s Pizza, reported 304 net new store additions in the year ended March 2026 — down from the 325 stores added in FY25 and 356 such additions in FY24.

Similarly, Devyani International, the franchisee for KFC, Pizza Hut and Costa Coffee, saw a 15.5 per cent drop in additions at 217 new stores as against 257 in FY25. Additions in FY26 was nearly 60 per cent lower than in FY24.

Progressive Decline

Sapphire Foods, which recently announced plans to merge with Devyani, also saw a progressive decline in store additions from 129 stores in FY24 to 89 in FY26.

Restaurant Brands Asia (RBA), Burger King’s India entity, bucked the trend with net additions rebounding slightly after dropping in FY25 and FY24.

Nithya Debbadi, Vice President and Sector Head, Corporate Ratings, ICRA Limited suggests that to some extent the drop in additions is a natural correction after the sharp scale up post the pandemic. “Store additions scaled up sharply in FY22 and FY23, both due to lower additions during the pandemic and strong pent-up demand in the immediate post pandemic period” she said.

Anjali Nathwani, Director, Crisil Intelligence believes that the strategy has now evolved from rapid footprint growth to quality of growth.

“QSR players are focusing more on same-store sales growth (SSSG )and are prioritising factors like site selection, stronger unit-level economics and sustainable margins,” she said. She also noted that elevated input costs and tighter capital allocation have made firms more cautious about investments.

Contributing Factors

Angshuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY-Parthenon said that though consumer spending has continued to remain resilient, much of the demand has shifted to online channels. “With online platforms, particularly food delivery apps, accounting for nearly half of sales in some cases, brands are finding less need to aggressively add new physical outlets,” he said.

In fact, as the online channel becomes the growth driver, many QSR chains are re-calibrating their store expansion around it.

Sameer Khetarpal, CEO & MD, Jubilant Foodworks in a recent earnings call highlighted that the company’s metro expansion model is now driven by ‘delivery-carryout’ stores of about 600-700 sq ft unlike the 1,500-1,600 sq ft larger dine-in focused restaurants.

Looking ahead, Debbadi said that store additions are expected to increase subject to continued recovery in demand. “Improved disposable income on the back of GST rationalisation, rate cuts and personal income tax cuts is expected to support demand. However, challenges from global geopolitical issues would remain monitorable,” she said.

Published on June 17, 2026