Barbeque Nation Hospitality to invest Rs 300 crore over next 3 years to expand its presence

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Barbeque Nation Hospitality is planning to invest Rs 300 crore to open 100 new outlets over the next 3 years, Rahul Agrawal, CEO, Barbeque Nation told ETRetail.

The company, which runs restaurant brands like Barbeque Nation, Toscano and Salt and delivery businesses like UBQ and Dum Safar, will fuel the expansion through internal accruals.

“Over the next 3 years, we will be opening 20 outlets of Toscano, 15 outlets of Salt, and 55 outlets of Barbeque Nation. With Toscano and Salt, we will be entering new cities like Mumbai, Delhi, and Hyderabad, whereas with Barbeque Nation, 75 per cent of the expansion will be concentrated in metro and tier I cities and the remaining 25 per cent will be opened in tier II and tier III cities,” he said.

“We will also be expanding our presence in the international markets by increasing the outlet count from 18 to 28. Apart from penetrating deeper into the Middle East market, we will be entering new markets like Sri Lanka,” he further added.

Currently, the company runs 220 restaurants – 16 outlets of Toscano in Bengaluru, Chennai, and Pune, 7 outlets of Salt in Bengaluru and Chennai, and the remaining 197 outlets are of Barbeque Nation spread across pan-India and in international markets like the Middle East.

“The sweet spot for our store size stands at 4,000 sq.ft.,” he said.

At present, the company earns 70 per cent of its revenue from Barbeque Nation India, 10 per cent from the delivery business, 17 per cent from Toscano and Salt together, and the remaining 3 per cent is contributed by the international business.

“For us, from FY19 to FY24, the delivery business has grown 7x,” he asserted.

Last fiscal, the same-store sales growth of the company stood at (-)6 per cent.

“In FY 23-24, our H2 versus H1 has been significantly different. We earned almost double the margins in the second half of the year on the same revenue base as H1. Our H2 at the P&L level was profitable,” he said.

This fiscal year, the company is aiming to turn PAT positive.

In FY 23-24, the EBITDA margins of the company stood at 21 per cent. However, its EBITDA margins are still lower by around 300 bps or 3-4 percentage points than what it used to do pre-COVID.

The company, which closed the last fiscal at Rs 1,250 crore, is aiming to grow at 15-18 per cent CAGR for the next 3 years.

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  • Updated On Jun 6, 2024 at 01:11 PM IST
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  • Published On Jun 6, 2024 at 01:03 PM IST
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  • 2 min read
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