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As competition intensifies in India's quick service restaurant (QSR) sector, Devyani International Limited (DIL) is overhauling its marketing strategy by placing artificial intelligence (AI), creator partnerships and hyper personalised customer engagement at the centre of its growth agenda. The company, which operates KFC, Pizza Hut and Costa Coffee in India, is shifting from conventional mass marketing to data driven, technology enabled consumer experiences to keep its brands relevant in a rapidly evolving market.
The move reflects a broader transformation of the company into a technology driven, consumer focused food services platform. By combining AI powered analytics, customer data intelligence and digital marketing, Devyani aims to deliver personalised experiences across dine in, takeaway and online channels while improving marketing effectiveness and customer retention.
A key pillar of this strategy is DIL Commerce, the company's proprietary technology platform that provides a unified 360-degree view of customers across all touchpoints. Leveraging AI based analytics and automation, the platform enables Devyani to better understand consumer behaviour, personalise engagement, optimise marketing investments and allocate capital more efficiently.
Commenting on the company's approach, Chairman Ravi Jaipuria said Devyani responded to a challenging demand environment by prioritising value, accessibility and digital engagement instead of pursuing growth at any cost.
The company increasingly relied on technology and consumer insights rather than broad based advertising to strengthen customer engagement while selectively investing in digital capabilities. As consumer confidence improved towards the end of FY26, value focused campaigns and product innovation helped stabilise same store sales across its leading brands.
Across the business, AI and advanced analytics are being integrated into customer engagement, marketing and operational decision making as part of Devyani's broader transformation into a technology enabled restaurant platform.
Among its portfolio, KFC has emerged as the frontrunner in adopting a digital first marketing strategy. The brand is targeting Gen Z consumers through mobile first experiences, gamified loyalty programmes, localised social media content and creator collaborations.
Creator led campaigns played a major role during FY26. KFC collaborated with YouTuber CarryMinati for the launch of Saucy Popcorn, while comedian Vir Das led the campaign for the Dunked Range. The brand also rolled out digital campaigns such as #BuyOrCry, using humour driven, short form content to create culturally relevant conversations and deepen consumer engagement.
At the same time, KFC continued to strengthen its value proposition through initiatives such as the Epic Savers dine in offer and the introduction of the ₹69 Chana Chatpata Burger, balancing affordable offerings with premium product innovation.
Meanwhile, Pizza Hut is preparing for its next phase of growth through strategic brand repositioning. With the proposed merger of Devyani International and Sapphire Foods expected to consolidate Pizza Hut operations across India, the company is laying the groundwork for a unified national marketing strategy.
Instead of accelerating expansion, Pizza Hut deliberately slowed store additions during FY26 to focus on portfolio optimisation, menu innovation and brand refresh. It also stepped up investments in AI powered omnichannel capabilities aimed at improving convenience across dine in, takeaway and delivery channels.
Marketing initiatives continued to blend entertainment with affordability. Campaigns such as Flip the Cheese for the Ultimate Cheese Crust offering used unconventional creative executions, while Crafted Flatzz leveraged cricket and influencer culture to engage younger audiences. The broader Agent Pizza campaign reinforced the brand's value proposition through humour driven storytelling during major sporting events.
Costa Coffee is also repositioning itself beyond beverages by building a lifestyle focused brand for Gen Z and millennial consumers. Through its YOU x Costa campaign, the brand promoted cafés as spaces for creativity, self expression and social interaction by combining influencer partnerships, digital storytelling and experiential marketing.
The coffee chain further strengthened its premium positioning through its partnership with PVR INOX, expanding café style coffee offerings inside multiplexes while refreshing store formats and introducing limited edition beverages tailored for younger consumers.
Looking beyond individual campaigns, Devyani sees AI as the foundation of its future marketing organisation. The company said AI enabled analytics, automation, omnichannel customer journeys and digital ordering are enabling more personalised customer experiences while improving operational efficiency across brands.
More than 80 per cent of KFC outlets are already equipped with self service kiosks, allowing the company to capture richer first party customer data and deliver deeper personalisation across both physical and digital channels.
With competition rising across India's organised food services market, Devyani believes its long term advantage will come not only from menu innovation or network expansion but from a deeper understanding of consumer behaviour. AI, creator led marketing and personalised engagement are increasingly becoming the pillars of its strategy to build stronger customer loyalty, brand relevance and sustainable growth.
