Yum Brands' India partners Sapphire, Devyani to merge, creating fast-food franchisee giant

The deal ‌comes as fast-food franchisees in India face slowing same-store ⁠sales and margin pressures, with consumers cutting back on dining out and ordering ⁠in amid high ⁠living costs.

Sapphire Foods India said ​on Thursday it will merge with Devyani International, in a ⁠move that ‌is likely to consolidate local franchisee partners of Yum Brands, the owner of KFC ​and Pizza Hut.

The deal, first reported by the local Economic Times, ‌comes as fast-food franchisees in India face slowing same-store ⁠sales and margin pressures, with consumers cutting back on dining out and ordering ⁠in amid high ⁠living costs.

Devyani will issue ‌177 shares for ‌every 100 shares of Sapphire, the latter said.

Sapphire said the ‍merger will create a scaled quick-service restaurant (QSR) platform by consolidating KFC and Pizza Hut operations, boosting efficiency, expanding domestic and international reach and strengthening growth and capital ​access.