Barbeque Nation Eyes for 350 Stores by 2023; Plans to Launch in Siliguri Soon
Over the past four years, Barbeque Nation has added 64 restaurants, crossing the 100th milestone recently, with a launch at Dimapur in Nagaland. Post creating a successful enterprise in India, the brand began operations overseas in 2016, with the launch of outlets in Dubai, followed by two more in the same country.
BARBEQUE NATION has witnessed strong growth of over 29 percent YoY, over the last four years. The brand attributes its exceptional business performance to factors including, constant menu innovation, food festivals, operational efficiencies at the backend and tapping the potential of the metro, tier 1 and select tier 2 and 3 cities. “Till 2023 we are looking up to 350 stores. East India has created a lot of profit for us. Focusing on North East area, we are planning to open up in Siliguri,” said Kayum Dhanani, Managing Director, Barbeque Nation Hospitality Ltd to BW Hotelier.
The CDR (Casual Dining Restaurant) segment typically witnesses low proportion of its total revenues comprising of weekday sales, since weekends offer greater opportunities for leisure and family time. In contrast, weekday sales have consistently formed a relatively higher proportion of Barbeque Nation’s total revenues at about 49 percent over the last three years. Also, lunch covers form a higher portion of the brand’s revenues at about 45 percent, which is unique to the segment.
The higher weekday sales and relatively larger lunch covers are helping the brand increase utilization and have an efficient food waste management system. The restaurant attracts diners in groups with an average size between 4 and 5, leading to a relatively higher average bill size. The brand is also witnessing an increase in reservations through the ‘Barbeque Nation App’, which has so far been downloaded by over 7,80,000 people. In fiscal 2017, about 17 percent of total reservations were made through the BBQ App and 58 percent of the guests made advanced reservations.
Over the past four years, Barbeque Nation has added 64 restaurants, crossing the 100th milestone recently, with a launch at Dimapur in Nagaland. Post creating a successful enterprise in India, the brand began operations overseas in 2016, with the launch of outlets in Dubai, followed by two more in the same country. It is currently focusing on other countries in the Middle East, North America and South East Asia, with an opening in Malaysia slated in the month of May.
Barbeque Nation’s IPO is in the process and is looking at raising Rupees 160 Crore, a part of which will be utilized for further expansion. “We have the SEBI’s Approval to launch the IPO, we are waiting for the right market condition,” Dhanani commented.
The casual dining market in India is evolving constantly; in particular, tier 2 cities are developing as growth hubs for eating out. Increasing experimentation and spending capacity of consumers from these regions are making them a lucrative destination for the segment. While mega metros have the highest presence of CDR outlets at 44 percent, mini metros enjoy a share of 34 percent, the remainder being accounted for by tier 1 & 2 cities.
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