Quick Response (QR) Code is very useful for encoding the data in an efficient manner. Here data capacity in 2D barcode is limited according to the various types of data formats used for encoding. The data in image format uses more space. The data capacity can be increased by compressing the data using any of the data compression techniques before encoding. In this paper, we suggest a technique for data compression which in turn helps to increase the data capacity of QR Codes generated for image. Finally, results are compared with the normal QR Codes to find the efficiency of the new technique of encoding followed by compression for generating optimal QR code.