India's KFC, Pizza Hut Operator Devyani Hails Historic GST Move, Sees Minimal Impact
Devyani International Limited, the operator of KFC and Pizza Hut in India, welcomed the recent Goods and Services Tax (GST) reforms, describing them as a significant policy advancement for consumers and the retail sector. The company anticipates minimal impact on the quick-service restaurant (QSR) category, noting that benefits from reduced costs have already been passed on to consumers. The reforms are expected to bolster consumption across India.
Devyani International Limited, which operates prominent quick-service restaurant brands KFC and Pizza Hut in India, praised the newly introduced GST reforms as a historic and major policy development benefiting both consumers and the retail sector. The reforms involve a rationalization of GST slabs that simplifies tax structures, including a two-slab tax system of 5% and 18%, with higher rates on sin goods, aimed at boosting consumption and easing compliance. Devyani highlighted that the reforms would have minimal impact on the QSR category since the benefits from reduced input costs have largely already been transferred to consumers. Industry analysts also expect these changes to improve gross margins for QSR players by lowering input costs that previously suffered from a higher GST rate. Furthermore, the restructured GST model is seen as a boost to consumption in India, potentially reviving demand broadly across sectors, including food services. This move fits within broader economic trends showing increased manufacturing and retail activity following GST reliefs, signaling positive business sentiment and prospects for continued growth in consumer spending and industrial output.
