Archive · 25 Dec 2025
QSR Sector Faces Soft Demand in December Quarter
The Quick Service Restaurants (QSR) sector in India had a tough time during the December quarter.
Fewer people visited the restaurants, and even though there were some discounts due to GST rate cuts, it didn't help much.
The sales growth in October during the festival period didn't last, and by November and December, sales actually dropped by 1-3%.
Most QSR chains are expected to report a revenue decline of about 2.9%.
However, Domino's, which is run by Jubilant Foodworks, did better than others in terms of profits and expansion.
The new GST rules might help a bit in the future, but for now, the sector is still struggling.
QSR sector faced soft demand in the December quarter due to lower footfalls and muted traffic.
GST rate cuts led to price reductions but did not result in significant margin gains.
Same-store sales growth declined by 1-3% in November and December after a brief uptick in October.
Jubilant Foodworks (Domino's) outperformed peers with better margins and expansion.
Expected revenue decline of about 2.9% for some QSR chains in the nine-month performance.
- Who
- Quick Service Restaurant (QSR) sector, Jubilant Foodworks (Domino's)
- What
- Soft demand environment due to lower footfalls and muted traffic
- When
- December quarter (Q3FY26)
- Where
- India
- Why
- Lower footfalls, muted traffic, and fading festival demand momentum
- Sector
- Quick Service Restaurants (QSR)
- Quarter
- Q3FY26 (December Quarter)
- Same-Store Sales Growth (SSSG)
- 1-3% decline in November-December
- GST Impact
- Rate cuts led to price reductions, not margin gains
- Outlier
- Jubilant Foodworks (Domino's) performed better in margins and expansion
- Expected Revenue Change
- Average decline of 2.9% for some QSR chains
- GST 2.0 Impact
- Modest tailwind for consumer discretionary spending
