(Reuters) -Restaurant Brands Asia, the India franchisee of Burger King, reported a narrower fourth-quarter loss on Monday, as its affordable menu appealed to cost-conscious customers.
The company reported a net loss of 562.8 million rupees ($6.6 million) for the three months ended March 31, compared with a loss of 852.60 million rupees a year earlier.
Indian operators of U.S. chains such as Pizza Hut, KFC, McDonald’s and Burger King face a double blow, as they grapple not only with stiff competition from local rivals but also shrinking consumer spending due to high living costs and slow wage growth.
To counter this, they have relied on cheaper menu options to draw in diners.
In the last quarter, Restaurant Brands Asia introduced deals such as a bundle of two vegetarian burgers at 79 rupees and two chicken burgers at 99 rupees.
Such efforts helped its overall revenue climb nearly 6% to 6.33 billion rupees. Same-store sales at Burger King restaurants across India increased 5.1%, led by a growth in dine-in traffic.
Cheaper menu items also helped McDonald’s franchisee Westlife Foodworld double its profit last quarter, although KFC and Pizza Hut franchisee Sapphire Food India flagged a longer road to recovery, pressured by competition from delivery-focused Domino’s, operated by Jubilant FoodWorks.
Restaurant Brands Asia, however, has slowed its new store openings. It added just three new stores last quarter, out of a total of 58 for the April-March fiscal year.
It continues to focus on keeping diners through such efforts as last month’s limited-time “Korean Spicy Fest” menu, which included burgers, chicken wings and fries, to cash in on the buzz around K-culture. ($1 = 85.3820 Indian rupees)
(Reporting by Shivani Tanna in Bengaluru; Editing by Savio D’Souza)
