Devyani International Limited operates 123 Costa Coffee stores in India | Photo credit: Costa Coffee

Devyani International Limited (DIL) has reported positive first quarter performance for Costa Coffee in India despite a tougher trading environment for its restaurant portfiolio. 
 

The food and beverage operator said Costa Coffee’s sales grew 83% year-on-year to reach Rs 32 Cr ($3.9m) in the three months ended 30 June 2023, slightly down on the previous quarter’s Rs 33 Cr ($4m). 

Additionally, Costa Coffee achieved 78% year-on-year outlet growth to reach 123 stores. DIL opened 11 net new Costa Coffee sites during the period. 

The franchisee, which opened the first Costa Coffee store in India in 2005, said group outlet growth was slower than its previous four quarters amid a more ‘challenging macro environment and depressed consumer spending’. 

However, the franchisee’s full-year goal of opening 300 stores across its KFC, Pizza Hut, Costa Coffee and Vaango brands remains unchanged. DIL currently operates 1,290 units across its foodservice chains, led by Pizza Hut and KFC with more than 500 stores each. 

DIL achieved 20% year-on-year group sales growth to reach Rs. 847 Cr ($102.3) in its first quarter. KFC is the franchisee’s largest contributor with revenues of Rs. 516 Cr ($62.3m) in the period.