Zomato achieves new 52-week high at INR 123.9 following strong Q2 performance

News

By

-

November 7, 2023

Zomato’s stocks surged by as much as 6.4% during intraday trading on the BSE on Monday, hitting a new 52-week high of INR 123.9. This rise was propelled by the company’s strong Q2 FY24 earnings and a favorable outlook from the Street on the stock.

On Friday, the prominent foodtech company marked its second back-to-back profitable quarter, with its Q2 profits after tax (PAT) surging to INR 36 Cr from the INR 2 Cr recorded in Q1 FY24. Zomato experienced significant expansion across various business sectors, notably its quick commerce platform Blinkit, during the quarter under evaluation.

After the results were disclosed, a minimum of nine brokerage firms increased their price targets (PTs) for Zomato.

Bernstein elevated its stock price target for Zomato to INR 145 from its previous INR 120, stating that the Zomato flywheel is not just in motion but gaining momentum, propelling it to become a leading platform in both food delivery and commerce.

The brokerage raised its price target due to Zomato’s surpassing growth in the quarter, optimistic projections, and enhanced market conditions, resulting in a notable increase in monthly transacting users (MTUs). Additionally, it raised Zomato’s estimated food delivery revenue for FY24 and FY25 by 3% and 4%, respectively.

Conversely, Kotak Institutional Equities raised its fair value estimate for the stock to INR 130 from the previous INR 125, suggesting a 5.4% potential upside to the stock’s most recent closing price of INR 123.3 on the BSE today.

The brokerage also enhanced its revenue projections for FY2024-26 by 10-11%, attributing the growth to all three segments of Zomato’s business. Nevertheless, Kotak foresees increased ESOP costs for FY25.

JM Financial indicated that Zomato’s shares are likely to remain robust due to its Q2 results and the optimistic growth projection for key businesses, especially in terms of gross order value (GOV).

“With food delivery EBITDA margin gradually moving towards steady state levels and Blinkit business turning contribution level profitable, we now use a lower WACC (Weighted Average Cost of Capital) assumption of 12% versus 13% earlier,” said the brokerage as it raised its PT on Zomato to INR 155 from INR 115 earlier.

It’s worth mentioning that Q2 FY24 marked Blinkit’s first full-contribution positive quarter.

JM Financial noted that Zomato’s gold subscribers played a more significant role, accounting for approximately 40% of Zomato’s food delivery Gross Order Value (GOV), compared to 33% in Q1 FY24 and 19% in Q4 FY23. This shift is seen as a positive sign for the business, as subscriptions generally lead to increased customer loyalty and ordering frequency.

While the introduction of the government-supported ONDC in the food delivery sector has prompted concerns regarding its effect on Zomato’s operations, Motilal Oswal reaffirmed its stance that it does not anticipate heightened competition for the company led by Deepinder Goyal.

Furthermore, it maintained its optimistic outlook on the long-term growth potential for Zomato and raised the price target to INR 135, signifying a 9.5% potential increase over the stock’s most recent closing price.

Elara Capital raised its price target for Zomato to INR 150 from the previous INR 140, indicating a potential increase of more than 21% over its most recent closing price.

“We believe Zomato’s clout in the food business (duopoly nature) and scalability prospects in Blinkit may drive share price performance,” the brokerage said.

Jefferies raised its price target for the stock to INR 165 from INR 130.

It’s worth mentioning that Zomato’s shares have surged by 107.7% year-to-date, driven by robust growth and the company’s return to profitability. Additionally, its market capitalization has surpassed the $12 billion mark, up from $6 billion at the end of the previous year.

Among the 27 brokerages covering Zomato, 23 have assigned a ‘buy’ or higher rating to the stock, while the remaining four rate it as ‘sell’ or lower.

Zomato CEO Deepinder Goyal allotted 33,422 shares in Mamaearth’s IPO

News

By

SnackTeam

-

November 7, 2023

0

Deepinder Goyal, the Co-Founder and CEO of Zomato, has been allotted 33,422 shares in the public issue of Honasa Consumer, the parent company of the beauty direct-to-consumer unicorn Mamaearth.

According to a source cited by Moneycontrol, data on the bid-allottees for the IPO indicated that Goyal applied for 3.08 lakh Mamaearth shares, but he was allotted only 33,422 shares.

This development coincides with Mamaearth’s scheduled listing on the stock exchanges on November 7. The company successfully raised INR 765.2 crore from 49 anchor investors on October 30.

The funding round garnered support from notable investors, such as Smallcap World Fund, Fidelity, Abu Dhabi Investment Authority, Government Pension Fund Global, Caisse De Depot ET Placement, FSSA India Subcontinent Fund, Carmignac Portfolio, Goldman Sachs, Hornbill Orchid India Fund, and others.

On the final day, Mamaearth’s public offering was oversubscribed by 7.61 times due to substantial demand from qualified institutional buyers (QIBs). The issue attracted bids for 22 crore shares compared to the 2.89 crore shares available. Specifically, 1.57 crore shares were allocated for the QIB category, but it received bids for 18.11 crore shares, resulting in an oversubscription of 11.5 times.

In total, foreign institutional investors (FIIs) submitted bids for 14.88 crore shares. Conversely, the non-institutional investors (NIIs) category was oversubscribed by 4.02 times by the close of the final day. Out of the 78.72 lakh shares available in this category, it received bids for 3.17 crore shares.

Interestingly, Goyal’s allocation of the D2C unicorn’s shares coincides with the relatively lower interest shown by retail investors in Mamaearth’s IPO. The segment designated for them was oversubscribed by a modest 1.35 times. Retail investors bid for 70.67 lakh shares compared to the 52.48 lakh shares available in that category.

The startup intends to generate a maximum of INR 1,700 crore through its IPO, valuing the company at $1.2 billion. Mamaearth’s public offering consists of a fresh share issue amounting to INR 365 crore and an offer for sale (OFS) comprising 4.12 crore shares. The price range for the IPO was established at INR 308 to INR 324 per share.

Established in 2016 by Varun and Ghazal Alagh, Honasa Consumer, the holding company of Mamaearth, encompasses four brands in the beauty and personal care sector: The Derma Co., Ayuga, Aqualogica, and Dr. Sheth’s.

Following its listing, the company will be the fifth new-age tech startup, joining the ranks of ideaForge, Yudiz, Zaggle, and Yatra, to make its debut in the public markets this year.

From Start to Finish: The Process of Developing Your Ideal Brand Image

Business

By

SnackTeam

-

November 7, 2023

0

In the crowded and competitive landscape of today’s business world, a strong and distinctive brand image is essential for success. Your brand image is the face of your company, the essence that communicates your values and connects with your audience.

Before embarking on the journey of crafting your ideal brand image, it’s crucial to understand what exactly a brand image is. Simply put, it’s the perception your audience holds of your brand. It’s a blend of visuals, messaging, values, and emotions that shape how consumers relate to your company.

The journey begins with self-reflection. Your brand image must reflect your brand’s values, personality, and the unique story that sets you apart from your competitors. Ask yourself:

What are our core values and beliefs?
What’s our mission and vision?
Who is our target audience, and what do they care about?
What makes us different from the competition?

Incorporating a deep understanding of your target audience is a critical foundational step. It entails conducting comprehensive market research to gain valuable insights into your customers’ desires and requirements. This research will serve as the compass guiding the development of your brand’s image and messaging, enabling you to connect more profoundly with the thoughts and emotions of your audience.

Think of your brand as a person. What personality traits would it have? Is it sophisticated, friendly, bold, or playful? Your brand’s personality should align with your target audience’s preferences and values.

Apart from that, visual elements are a cornerstone of your brand image. This includes your logo, color palette, typography, and imagery. Each choice should be consistent with your brand’s personality and resonate with your audience.

Crafting the right message is essential. Your messaging should convey your brand’s personality, values, and mission. It should also speak directly to the needs and desires of your target audience.

When it comes to consistency, the factor is a non-negotiable element of brand image development. Every touchpoint – from your website and social media presence to your physical store and customer service – should reflect your brand’s identity and values.

Further, one shouldn’t be afraid to test one’s brand image. Seek feedback from your customers and your team. Monitor how your brand image is received and be prepared to make adjustments if necessary.

A well-crafted brand image offers several significant advantages:

Memorability: A strong brand image makes your company memorable. Customers are more likely to remember and recognize your brand.
Trust and Loyalty: A clear and consistent brand image builds trust. Customers are more likely to do business with brands they trust, leading to loyalty and repeat purchases.
Market Differentiation: In a crowded marketplace, a unique brand image helps you stand out from the competition. It’s what makes you the preferred choice.
Emotional Connection: A brand image that resonates emotionally with your audience creates a more profound connection. Customers feel like they share common values and beliefs with your brand.

Developing your ideal brand image is an ongoing process. It requires continuous assessment and adaptation to changing market dynamics and consumer preferences. As your company grows and evolves, so too will your brand image. The key is to remain authentic and true to your brand’s core values while staying attuned to the needs and desires of your audience. By understanding this process, you’re well on your way to crafting a brand image that leaves a lasting impression and drives your business towards success

Sustainability Drives Sales: The Business Benefits of Eco-Conscious Marketing

Business

By

SnackTeam

-

November 7, 2023

0

Sustainability is a movement instead of just a catchphrase in today’s business world. Present-day customers are drawn to companies that align with their environmentally conscious beliefs as they become more aware of how their decisions affect the environment. As a result, environmentally conscious marketing has become a potent force that promotes corporate success, increases sales, and helps the environment.

A new generation of consumers is redefining the market landscape. They are not merely looking for products and services; they are seeking brands that align with their values. The environment is one of the core values that resonate deeply with this group.

Sustainable marketing isn’t just about “greenwashing” – it’s a holistic approach that integrates environmental and social responsibility into every aspect of a business. The benefits are far-reaching.

An eco-conscious marketing sets your brand apart from the competition. It demonstrates that your business is committed to making a positive impact on the world. Consumers are more likely to trust and engage with brands that champion sustainable causes. Your brand’s commitment to eco-consciousness can enhance your image and reputation. Consumers are willing to pay a premium for sustainable products and services. By offering eco-friendly options, you can boost your revenue.

Apart from that sustainability often leads to cost-saving initiatives. Whether through reduced energy consumption, waste reduction, or efficient supply chain management, eco-conscious practices can positively impact your bottom line.

Sustainable practices help you stay compliant with environmental regulations, reducing the risk of legal issues and penalties.

How to Incorporate Sustainability into Your Marketing Strategy

Identify Your Brand’s Sustainability Values

The first step in incorporating sustainability into your marketing strategy is identifying your brand’s core sustainability values. What does your company stand for in terms of environmental and social responsibility? Consider factors like reducing carbon emissions, conserving natural resources, promoting fair labor practices, and supporting local communities. Once you have a clear vision of your brand’s sustainability values, you can begin crafting your marketing strategy around them.

Integrate Sustainability in Your Mission and Vision

To make sustainability a core part of your marketing strategy, it must be deeply ingrained in your company’s mission and vision. Ensure that your commitment to sustainability is clear, compelling, and well-communicated to your employees and customers. This will serve as a foundation for your marketing efforts, creating a consistent and authentic message.

Develop Sustainable Products and Practices

One of the most effective ways to showcase your commitment to sustainability is by developing eco-friendly products and adopting sustainable business practices. Whether it’s using recycled materials, reducing energy consumption, or implementing waste reduction programs, your products and operations should reflect your dedication to minimizing your environmental impact. These practices can become powerful selling points for your marketing campaigns.

Tell Your Sustainability Story

A compelling narrative can engage your audience and effectively communicate your brand’s commitment to sustainability. Share your journey towards sustainability, the challenges you’ve faced, and the progress you’ve made. Use multiple marketing channels, including your website, social media, and email newsletters, to tell your sustainability story consistently. Transparency and authenticity are key to building trust with your customers.

Leverage Social Responsibility Partnerships

Collaborating with non-profit organizations, environmental groups, or local charities can be an excellent way to integrate sustainability into your marketing strategy. Highlight these partnerships in your campaigns, showing that your brand is actively contributing to positive social and environmental change. Customers are more likely to support companies that give back to the community.

Promote Sustainability Through Content Marketing

Create content that educates your audience about sustainability and encourages environmentally responsible choices. Blogs, videos, and infographics are excellent tools to provide tips, insights, and case studies related to sustainability. Educating your customers not only positions your brand as an authority in sustainability but also demonstrates your commitment to the cause.

Offer Sustainability Incentives

Incorporate sustainability into your marketing strategy by providing incentives for eco-friendly behavior. For example, offer discounts to customers who recycle or use reusable products. These initiatives not only promote responsible consumption but also encourage customer loyalty.

Measure and Communicate Impact

To ensure the effectiveness of your sustainability efforts, regularly measure and report on your environmental and social impact. Utilize key performance indicators (KPIs) to track your progress and communicate the results to your customers. Transparency in your reporting will reinforce your brand’s authenticity and commitment to sustainability.

Stay Updated and Adapt

The sustainability landscape is continually evolving, with new trends and technologies emerging. Stay informed about the latest sustainability practices and innovations and be ready to adapt your marketing strategy accordingly. Being at the forefront of sustainability will keep your brand relevant and appealing to eco-conscious consumers.

The Roadmap to a Sustainable Future

Eco-conscious marketing is not a passing trend; it’s a fundamental shift in the business landscape. By embracing sustainability and weaving it into your marketing strategy, you can tap into the growing demand for eco-friendly products and services. As consumers increasingly make choices that align with their values, your business can thrive by demonstrating a commitment to a healthier planet and a healthier bottom line. Sustainable marketing isn’t just a responsibility; it’s a business opportunity waiting to be seized.

Sensory Marketing: Tapping into Senses to Influence Consumer Behavior

Business

By

SnackTeam

-

November 7, 2023

0

It takes more than just catchy slogans and visually striking imagery to succeed in the ever changing field of marketing. Sophisticated marketers of today are delving into novel realms – the senses. Using sensory marketing is an engaging tactic that appeals to our senses and makes a lasting impression on us.

We live in a world of constant sensory bombardment. From the aroma of our morning coffee to the feel of our favorite clothing, our senses play a vital role in our daily lives. In the world of marketing, understanding how to harness this sensory input is becoming increasingly crucial.

Engaging the Five Senses

Effective sensory marketing targets our five primary senses: sight, hearing, taste, touch, and smell. By appealing to these senses, brands can create immersive and memorable experiences that resonate with consumers.

1. Sight: Visual Appeal

Visual stimuli are among the most potent in the marketing arsenal. Eye-catching logos, vibrant packaging, and compelling website designs are just a few examples of how brands engage our sense of sight.

2. Hearing: The Power of Sound

Think of the soothing melody when you open a well-designed app or the jingle that plays in your favorite fast-food restaurant. Sound can evoke emotions and create a strong brand association.

3. Taste: Culinary and Beverage Adventures

Food and beverage brands have long understood the influence of taste. The explosion of craft breweries and artisanal bakeries is a testament to our desire for unique taste experiences.

4. Touch: The Sense of Texture

The way a product feels in your hand can significantly impact your perception of its quality. Think of the smooth touch of an Apple product or the reassuring grip of a luxury car’s steering wheel.

5. Smell: Fragrance and Memory

The power of scent is undeniable. A familiar fragrance can transport you back in time, making it an invaluable tool in industries like perfumery, retail, and hospitality.

Influence on Consumer Behavior

Sensory marketing isn’t just about creating pleasurable experiences; it’s about influencing consumer behavior. Engaging the senses can evoke emotions. When a brand triggers positive emotions, it forms a deeper connection with its audience, leading to loyalty and repeat business. Sensory experiences create lasting memories. Brands that leave a sensory imprint tend to be more memorable and recognizable.

The senses can influence purchase decisions. Whether it’s the sight of a beautifully presented dish or the aroma of a freshly baked cookie, sensory cues play a role in what we choose to buy.

Strong sensory cues help in brand recognition. When consumers encounter a familiar scent, taste, or touch, they instantly associate it with a specific brand.

The Road to Success

To leverage sensory marketing effectively, brands should recognize the sensory preferences and expectations of your target audience. Different demographics may respond to different sensory cues.

Apart from that you should ensure that your sensory cues are consistent across all brand touchpoints, from your product packaging to your advertising. Authenticity in sensory marketing is paramount. Cues should align with your brand’s identity and values.

The Sensory Future

As we continue to be bombarded by information, brands that embrace sensory marketing stand out. By appealing to our senses, they create more profound connections, engage emotions, and influence consumer behavior. Sensory marketing isn’t just a trend; it’s a powerful tool that’s here to stay. As brands continue to explore the uncharted territory of sensory experiences, they’re set to redefine the marketing landscape, one sensory encounter at a time.

The Power of Choice: Why Brands Need Omni-Channel Strategies to Thrive

Business

By

SnackTeam

-

November 7, 2023

0

In the connected, fast-paced world of today, consumers have an abundance of options. They can engage with brands in a variety of ways, such as by using mobile apps, social media, in-person visits to stores, and online shopping.

Gone are the days when consumers followed a linear path to purchase. Today, they embrace a non-linear and multi-faceted approach. The customer journey is no longer a simple progression from awareness to purchase. It’s a dynamic web of interactions across various touchpoints.

Omni-channel is a holistic approach that unifies a brand’s presence across all available channels – physical and digital. It enables seamless integration and consistency in the customer experience, regardless of where or how they choose to engage with the brand.

The Power of Choice

So, why is offering choice so crucial for brands?

1. Meeting customers where they are: Modern consumers expect convenience. They want to shop, inquire, and interact on their terms, and that means a brand must be available wherever the customer is.

2. Building stronger connections: When a brand engages customers on multiple channels, it forms a more profound and lasting relationship. Whether through personalized emails, responsive social media, or in-store interactions, each channel offers an opportunity to connect.

3. Enhancing the shopping experience: Omni-channel strategies provide an all-encompassing shopping experience. Customers can begin their journey online, visit a physical store for a tactile experience, and return to the website for further research before making a decision. This flexibility improves customer satisfaction.

4. Data and insights: By tracking customer interactions across channels, brands can gain valuable insights into preferences, behaviors, and pain points. This data can inform better decision-making and targeted marketing efforts.

The Success Stories

Several brands have aced their omni-channel game:

1. Starbucks: Through its mobile app, loyalty program, and in-store experience, Starbucks provides a consistent and highly personalized coffee journey for customers.

2. Amazon: Amazon’s seamless transition from online to offline, with its acquisition of Whole Foods, demonstrates its commitment to meeting customers in both digital and physical spaces.

3. Nike: Nike’s mobile app, Nike Training Club, connects customers to both its online store and physical retail locations, offering a comprehensive brand experience.

The Road to Thriving

To thrive in the digital era, brands need to embrace omni-channel strategies by understanding their customers’ preferences and aligning omni-channel strategy with their behaviors and expectations.

Ensure that the brand message, tone, and customer experience remain consistent across all channels.
Invest in technology and systems that allow for smooth data integration and interaction across channels. Utilize data to continuously refine and optimize your omni-channel strategy.
Be ready to pivot and evolve as new channels and technologies emerge.

Embracing the Power of Choice

In a world where choice is abundant, brands must adapt to survive and thrive. The omni-channel approach is not just a strategy; it’s a necessity. By offering customers the freedom to engage on their terms, building stronger connections, and harnessing valuable insights, brands can ensure their relevance and success in an ever-changing marketplace. The power of choice is no longer an option but a compelling mandate for any brand that seeks to flourish in the modern consumer landscape.

AR Commerce: How Brands Can Drive Sales and Growth through Augmented Reality

Business

By

SnackTeam

-

November 7, 2023

0

The e-commerce industry continues to evolve quickly, and companies are always coming up with new and creative ways to draw in and interact with consumers. Augmented Reality (AR) is one such ground-breaking technology that has completely revolutionised the retail sector. This post will examine how brands are utilising augmented reality commerce to boost sales and promote expansion, delving into the intriguing realm of this industry.

Augmented Reality, often abbreviated as AR, superimposes digital elements onto the real world, creating an immersive and interactive experience for users. This technology has found its way into the world of commerce, opening up a plethora of possibilities for brands to connect with their audience in unprecedented ways.

Transforming the Shopping Experience

AR commerce is revolutionizing the way consumers shop online. Here’s how brands are leveraging AR to drive sales and growth by imagining trying on clothes, accessories, or even makeup from the comfort of your own home. AR enables customers to visualize how products will look on them before making a purchase. This not only enhances the shopping experience but also reduces the chances of returns, as customers have a better idea of what they’re buying.

Interactive Product Previews

AR allows customers to interact with products in 3D. From examining the intricate details of a piece of furniture to exploring the features of an electronic gadget, the ability to view products from every angle fosters confidence and encourages conversions.

Brands in the home décor and furniture industry are making the most of AR by enabling customers to virtually place furniture and decor items in their homes. This helps customers make informed decisions about sizes, styles, and placements.

Some brands are launching dedicated AR shopping apps. These apps employ AR technology to provide a seamless and immersive shopping experience. Customers can browse, select, and purchase products within the AR environment.

The Impact on Sales

The integration of AR commerce into brand strategies is yielding impressive results:

Increased Conversions: By offering an engaging and interactive shopping experience, brands are witnessing higher conversion rates. When customers feel more connected to a product, they are more likely to make a purchase.

Reduced Returns: Virtual try-ons and 3D previews help customers make informed choices, resulting in fewer returns due to product dissatisfaction. This not only saves brands money but also enhances customer satisfaction.

Enhanced Brand Loyalty: Brands that invest in AR commerce are often seen as innovative and customer-centric. This perception can lead to increased brand loyalty and positive word-of-mouth marketing.

As technology continues to advance, AR commerce is poised for even greater growth. Brands are likely to explore new use cases, from virtual showrooms for cars to AR-enhanced product manuals. The future of AR commerce is a blend of convenience, interactivity, and a more personalized shopping experience.

Embrace the AR Commerce Revolution

In a world where consumers are increasingly seeking convenience and personalized experiences, AR commerce is proving to be a game-changer. Brands that leverage this technology effectively can not only drive sales but also foster growth, all while delighting and engaging their customers in novel and exciting ways. As AR continues to reshape the e-commerce landscape, the possibilities are only limited by our imagination. It’s time for brands to embrace the AR commerce revolution and embark on a journey of innovation and growth.

Café Barbera expands European presence, opens first location in Greece with innovative mini-store concept

News

By

SnackTeam

-

November 6, 2023

0

Italian coffee chain Café Barbera has expanded its European presence, venturing into its fifth market with the opening of its first location in Greece, according to a report from World Coffee Portal.

Situated in Athens, this new store also signifies the introduction of the brand’s inaugural mini-store concept in the European region.

The newly devised mini-store concept aims to enhance Café Barbera’s visibility in bustling locations, including shopping centers, commercial buildings, universities, office districts, airports, and metro stations.

Café Barbera managing director Elio Barbera said, “The company-owned store, located in the historical centre of Athens, will serve as a business model for the new format.

“The coffee chain plans to launch multiple mini stores across Athens in the next three years.”

This is Café Barbera’s fourth market entry within the 12 months leading up to November 2023.

In November 2022, it opened its first store in Djibouti in the Horn of Africa. Following that, additional locations in Palestine and Tbilisi, Georgia, opened in October 2023.

The coffee chain presently has a presence in 18 global markets, with five of these located in Europe, which includes countries like Italy, Ukraine, and the UK.

Café Barbera initiated its first franchised establishment in 2004 and has since expanded to encompass 40 locations across 17 diverse countries.

Dishoom brings irresistible bhatti chicken and chai experience to South London

News

By

SnackTeam

-

November 6, 2023

0

Dishoom, a restaurant group with Bombay-inspired cuisine, is preparing to launch a new dining establishment at Battersea Power Station in South London, UK.

According to the report in The Caterer, the restaurant is scheduled to open in December 2023 and will be situated on Electric Boulevard, just outside the central power station building.

The menu of the Bombay-inspired restaurant will showcase a selection of its distinctive food offerings, including several signature items, as well as a chef’s special dish, the bhatti chicken.

Prepared by marinating in a blend of black spices, this dish is presented in both whole and half portions, served on the bone.

Additionally, the restaurant will include a Permit Room bar where guests can enjoy cocktails, chai (tea), and a variety of non-alcoholic beverages.

Dishoom Battersea’s menu also includes offerings such as a bacon naan roll, bun maska, roomali roti rolls, and an assortment of salads.

The Caterer quoted Dishoom Co-Founder Shamil Thakrar as saying, “I am a proud Londoner, and Battersea Power Station is one of those few genuinely iconic London buildings.

“When I was growing up, my father would endlessly lecture me on the importance of the power station and its provision of power for the city – I cannot quite believe we are in the fortunate position to be opening right beside it. I am genuinely thrilled.”

Drawing inspiration from the traditional Irani cafes of Bombay, Dishoom was established in 2010 in the heart of Covent Garden, central London.

Dishoom is currently strategizing an expansion to additional locations.

In 2022, the company reported a substantial 64% growth in turnover, reaching £94.9 million ($115.2 million), alongside a remarkable four-fold surge in pre-tax profits to £4.7 million.

As per information from PR agency Gemma Bell and Company, Dishoom is planning a soft launch for the Battersea restaurant, running from November 27 to December 5, 2023, leading up to the official opening on December 6.

Barbeque-Nation struggles with a second quarter of losses as expenses rise

News

By

SnackTeam

-

November 6, 2023

0

On Monday, Barbeque-Nation Hospitality announced its second consecutive quarterly loss, primarily attributed to declining demand and increasing expenses.

The restaurant chain recorded a consolidated net loss of 123.7 million rupees ($1.5 million) for the three-month period concluding on September 30, marking a contrast from the 43.1 million rupees loss reported in the previous quarter.

In the same period last year, the company had reported a profit of 70.9 million rupees.

Indian food companies are grappling with reduced customer traffic due to elevated inflation, which is prompting consumers to limit their discretionary expenses.

For the majority of the reporting quarter, India’s retail inflation stayed above the Reserve Bank of India’s tolerance range of 2%-6%, only easing to 5.02% in September.

In response to this, Barbeque-Nation introduced promotional deals such as “early bird sales” on both beverages and food in an effort to boost sales.

In a statement, the company noted that it experienced a “seasonally sluggish quarter affected by days when only vegetarian options were available.”

The key performance metric, same-store sales, experienced a year-on-year decline of 10.7%, while the total revenue dropped by 2.8%. During this period, the company both opened four new stores and shuttered four others.

The company stated its intention to explore cost optimization strategies to enhance same-store sales growth in the latter half of the fiscal year.

Barbeque-Nation’s expenditures increased by 2%, primarily due to higher employee benefit expenses and occupancy costs, which more than offset a 2.5% reduction in the cost of food and beverages.

Following the release of the results, Barbeque Nation’s shares dipped by 2.5% to 631.9 rupees, accompanied by a trading volume 1.7 times higher than its 30-day average.

Westlife Foodworld and Sapphire Foods India witnessed declines in profits previously, whereas Jubilant FoodWorks, the franchisee of Dominos Pizza, surpassed Q2 profit estimates due to increased demand driven by cheaper pizzas.

NewsHub

How to Incorporate Sustainability into Your Marketing Strategy

The Roadmap to a Sustainable Future

Engaging the Five Senses

Influence on Consumer Behavior

The Road to Success

The Sensory Future

The Power of Choice

The Success Stories

The Road to Thriving

Embracing the Power of Choice

Transforming the Shopping Experience

Interactive Product Previews

The Impact on Sales

Embrace the AR Commerce Revolution