Indian fast-food chains struggled in Q2FY26 due to weak demand, rising promotions, and delivery-driven sales.

Indian quick-service restaurant chains saw weak performance in Q2FY26 due to consumers favoring value deals amid low discretionary spending and seasonal disruptions. Most chains reported declining same-store sales, except Jubilant FoodWorks, which grew 9.1%. Promotions intensified, with low-priced items and deals like KFC’s Rs 69 burger and Pizza Hut’s Buy-1-Get-3 offers. Delivery drove growth, making up 74%–91% of transactions, though margins suffered from lower-priced offerings. Westlife Foodworld hit a record 72.4% gross margin via supply chain efficiency, while Jubilant maintained margins through operations. Domino’s and KFC expanded, adding 81 and 30 outlets respectively, but Pizza Hut slowed growth. A recovery in consumer demand is seen as critical for future performance.