Friday, March 22, 2019


Barbeque Nation witnesses growth of 29% year-on-year over four years
Tuesday, 10 April, 2018, 08 : 00 AM [IST]
Our Bureau, New Delhi
Barbeque Nation, one of India’s leading casual dining restaurant (CDR) chains, has witnessed strong growth of over 29 per cent year-on-year (YoY) over the last four years. The brand attributes its exceptional business performance to such factors as constant menu innovations, food festivals, operational efficiencies at the back end and tapping the potential of metro, Tier-I and select Tier-II and III cities.

The chain’s format of offering elaborate menus at fixed prices has positioned it well to capitalise on both the robust growth trend of the CDR segment in India and the broader chain restaurant market within the Indian food and services industry.

The brand has successfully established itself as a popular choice, not just for family dinners, but also corporate lunches, owing to the strategic locations of outlets, their fine ambience and competitive pricing.

The CDR segment typically witnesses a 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 per cent over the last three years.

Also, lunch covers form a higher portion of the brand’s revenues at about 45 per cent, which is unique to the segment. The higher weekday sales and relatively larger lunch covers is helping the brand increase utilisation and have an efficient food waste management system.

The restaurant attracts diners in groups with an average size between four and five, 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 per cent of the total reservations were made through the BBQ app and 58 per cent 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 an outlet in Dubai, followed by two more in the emirate.

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 initial public offering (IPO) is in process and is looking at raising Rs 160 crore, a part of which will be utilised for further expansion.

Kayum Dhanani, managing director, Barbeque Nation Hospitality Ltd, said, “From the launch of our first outlet in 2006, to the 100th this year, Barbeque Nation has come a long way in offering an unmatched dining experience to its guests.”

“We have contributed significantly to defining and shaping the casual dining experience in the country with our unique proposition of do it yourself (DIY) live on-the-table-grill and have served over 24 million patrons over the last four years. With constant innovation and a penchant for experimentation, we are now charting the next phase of growth in our journey,” he added.

The casual dining market in India is evolving constantly. Tier-II cities, in particular, 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 per cent, mini metros enjoy a share of 34 per cent. The remainder is accounted for by Tier-I and II cities.

The chain CDR segment grew at a compound annual growth rate (CAGR) of 19 per cent between fiscal 2013 and 2017.

Furthermore, with social and digital media playing a key role in consumer engagement, it is slated to take centrestage in defining brands and their propositions in future.
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