Barbeque Nation Hospitality is set to invest INR 300 crore to launch 100 new outlets over the next three years, according to CEO Rahul Agrawal.
The company, which operates restaurant brands such as Barbeque Nation, Toscano, and Salt, as well as delivery services like UBQ and Dum Safar, will finance the expansion through internal accruals.
“Over the next three years, we plan to open 18-20 Toscano outlets, 12-15 Salt outlets, and 50-55 Barbeque Nation outlets,” he said. “We’re going to new cities like Hyderabad, Delhi, and Mumbai with Toscano and Salt. For Barbeque Nation, 75% of the expansion will focus on metro and tier I cities, with the remaining 25% targeting tier II and tier III cities.”
International Expansion Plans
“We will also expand our international presence by increasing our outlet count from 18 to 28, achieving an 8-10 percent growth,” he added. “In addition to deepening our reach in the Middle East, we will enter new markets such as Sri Lanka.”
Continue Exploring: Barbeque Nation expands footprint with grand opening at Nexus Ahmedabad, marking fourth venture in Gujarat
Currently, the company operates 217 restaurants: 16 Toscano outlets in Bengaluru, Chennai, and Pune; 7 Salt outlets in Bengaluru and Chennai; and 194 Barbeque Nation outlets across India and in international markets such as the Middle East.
“Our ideal store size is 4,000 square feet,” he said.
Currently, the company generates 80 percent of its revenue from Barbeque Nation India, 13 percent from Toscano and Salt combined, and the remaining 7 percent from its international business.
“All our outlets are company-owned and operated, with no plans to open franchise locations. Additionally, our delivery business has grown sevenfold from FY19 to FY24,” he asserted.
In the last fiscal year, the company’s same-store sales growth was -6 percent.
“In FY 23-24, there was a significant difference between our performance in the second half (H2) compared to the first half (H1). We nearly doubled our margins in the second half of the year with the same revenue base as H1. Our P&L for H2 was profitable,” he said.
This fiscal year, the company aims to achieve positive profit after tax (PAT).
In FY 23-24, the company achieved an EBITDA margin of 18.3 percent. However, its EBITDA margins are still around 300 basis points lower, or 3-4 percentage points lower than pre-COVID levels, which were typically around 22-23 percent.
The company, which ended the last fiscal year at INR 1,250 crore, aims to achieve a compound annual growth rate (CAGR) of 15-18 percent over the next three years.
Continue Exploring: Barbeque Nation Hospitality plans aggressive expansion, targets 100 new stores in three years