Sapphire Foods Hits Pause on Pizza Hut Growth Strategy Amid Sales Dip

For years, Pizza Hut expanded steadily across Indian cities, highways, malls and neighbourhood markets, aiming to capture the country’s growing appetite for casual dining. But the momentum has now shifted. Sapphire Foods India Ltd., which operates Pizza Hut in several parts of the country, has paused opening new outlets, choosing instead to focus on turning around performance at existing stores.

Though the brand remains one of the most recognized names in the quick service restaurant space, recent business indicators have pointed to a slowdown. Same-store sales growth declined by around 8% year-on-year, and average daily sales per store dropped from roughly ₹47,000 to about ₹42,000 in the last reporting period. The dip, while not dramatic, was enough to push the company toward a more cautious approach.

In a recent discussion with analysts, Sanjay Purohit, Whole-Time Director & Group CEO of Sapphire Foods, mentions

“There has been a struggle with Pizza Hut. Last year, we opened around 20 stores. This year, we are at a net negative. Until we see a meaningful revival in the brand and in same-store sales growth, we do not plan to add new outlets.”

The softening performance comes at a time when consumers are spending more selectively on dining out, especially in urban markets where cost pressures are rising. Pizza Hut, which historically leaned on a dine-in led format, has found itself competing with a wave of delivery-first players offering sharper pricing and faster convenience.

Sapphire Foods isn’t pulling back from the brand, rather, it is pivoting to stability before expansion. The company is working on improving unit economics, refreshing menu offerings, and strengthening customer value perception. The idea is to fix the foundation before building more floors.

And for the Indian QSR landscape, the move is a reminder that even large, established players are revisiting assumptions about how consumers dine, spend, and choose brands in today’s market.