Archive · 10 Jun 2025
QSRs Face Margin Pressure Amidst Food Delivery Growth
Imagine two groups of restaurants: fast-food chains (QSRs) and food delivery services (like Swiggy and Zomato).
A new report says that QSRs are struggling because their costs are going up, while food delivery companies are making more money.
This is partly because the delivery services are getting bigger and creating their own food brands.
QSRs are also hesitant to increase prices because people aren't buying as much.
Although QSRs are still selling food, their sales aren't growing as fast as the delivery services.
This means QSRs need to get better at selling food to compete.
QSR firms face margin pressure due to inflation and weak demand.
Food delivery firms have improved margins.
QSR companies are slowing store expansion.
Online food aggregators compete with QSRs by launching dark kitchen brands.
Aggregate sales of Indian listed QSR chains increased by 10% in FY25.
- Who
- QSR companies, food delivery firms, and consumers in the Indian market.
- What
- QSR firms experiencing margin pressure while food delivery firms' margins improve.
- When
- Report released June 10, 2025, covering data through FY25.
- Where
- India
- Why
- Factors include inflation, weak demand, and increased competition from food aggregators.
QSR challenges
Food Delivery Improvement
Profitability
QSR challenges
QSRs face margin pressure due to inflation and weak demand.
Food Delivery Improvement
Food delivery firms show improved margins.
- Report Source
- BNP Paribas
- QSR Sales Growth (FY25)
- 10%
- Food Delivery GOV Growth (FY25)
- 18%
- Jubilant Foods Revenue Growth (Q4FY25)
- 19% year-on-year
- QSR Firms attribute lower growth to
- Tougher urban consumer demand