Devyani International · tone and specificity signals across the available quarters.
Language signals
Pizza Hut... the biggest issue was the structure which is what we've discussed in the past. The entire three-way structure between us, Sapphire and Yum in terms of decision-making, in terms of the initiatives, in terms of innovation and so on and so forth.
As I've mentioned in the past, the key driver for improving the brand contribution margin remains the ADS number. Once we cross a threshold of 105,000-110,000 ADS, we will be able to cross 20% brand contribution margins in KFC as we've demonstrated in the past.
We've hired a new Chief Technology Officer... At the same time, rather than building our completely new in-house tech team, we've decided to build a core team in-house and then outsource the entire buildup to Cognizant Technologies.
The demand environment in our view continues to be weak. And therefore we've seen that whenever let's say we do some promotions or promotion intensity it kind of picks up very well and the moment you kind of withdraw that it falls back.
Our goal is to achieve brand contribution break even by March 2026 and we are pleased to report steady progress towards this milestone.
As far as we are concerned all of our agreements are well protected and in case of any such event there's no difference that is going to impact us as far as the India business or any of the other businesses where we have Pizza Hut.
We have achieved break even brand contribution for Biryani by Kilo much ahead of our target as guided earlier.
Our biggest priority will be to turn around the SSSG and ADS numbers and this can only happen with multiple measures.
We have seen positive SSSG across all our brands in the month of January except Pizza Hut where the losses are being contained.
KFC delivered its strongest performance in the last 14 quarters, posting 4.9% positive SSSG and nearly 15% year-on-year growth during the quarter.
We need to give a reason to the consumer to come into the store... if you give a reason to the consumer to come into the store they will come into the store.
We are going back to basics as far as Pizza Hut is concerned in terms of identifying the gaps on the portfolio from a product point of view, identifying the pricing layers which are kind of missing in our portfolio.