India KFC and Pizza Hut Operators Merge in $930M Deal to Combat Delivery Rivals

A $930 million fast-food titan is rising in India. The country's top operators of KFC and Pizza Hut are joining forces in a massive all-stock merger. It's a defensive move designed to protect margins as aggressive delivery startups eat into traditional restaurant profits.

Strategic India KFC Pizza Hut Merger 2026 Details

The two franchise giants, Devyani International and Sapphire Foods, announced an all-stock deal worth approximately 84 billion rupees on January 13, 2026. According to Nikkei Asia, the consolidation comes as the 5.7 trillion rupee ($63.2 billion) sector faces unprecedented pressure from rising operational costs.

While they've been expanding rapidly, these operators are feeling the heat from delivery giants like Swiggy and Zomato. These platforms haven't just changed how Indians eat; they've also squeezed the margins of physical outlets through high commissions and constant discounting.

Efficiency Over Expansion

By merging, the two companies expect to streamline their supply chains and gain better leverage when negotiating with delivery aggregators. Industry analysts suggest that this consolidation is a signal that the Indian F&B market is maturing, prioritizing profitability over pure footprint growth.