Barbeque Nation (NSE: BARBEQUE / BOM: 543283): India’s Successful Homegrown Casual-Dining-Restaurant

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Barbeque-Nation Hospitality (NSE: BARBEQUE / BOM: 543283) is one of India’s leading casual dining chains having pioneered the concept of “over the table barbeque” live grills embedded in dining tables. This allows guests to grill their own barbecue’s right at their tables with the concept of ‘all you can eat.’ In addition, the Company has stakes in or has started other food concepts.

However, shares are now trading at 1/3rd of the value of their all time highs in late 2021.

OVERVIEW:

  • Barbeque Nation was founded in 2006 by Sayaji Hotels Ltd, one of it’s Promoters. The Company currently owns and operates around 200 outlets in 82 cities in India, 4 outlets in UAE, 1 outlet in Malaysia and 1 outlet in Oman. They believe that barbeque cuisine is distinctively attractive as compared with other dining options due to its DIY and cooked-at-the-table nature and the flexibility and fun of mixing and matching a wide variety of meats, vegetables, sauces and condiments to create dishes according to each diner’s individual tastes and preferences. The Barbeque Nation Restaurants typically offer customers at least five vegetarian and five non-vegetarian largely pre-cooked appetisers they can season and barbeque on a grill embedded in their table, an all-you-can-eat main course buffet and a selection of desserts.
Earnings Presentation Q4 FY23
  • Barbeque Nation continues to offer new menu options, both vegetarian and non-vegetarian, largely based on Indian cuisine and use seasonal customer preferences to introduce new dishes. They also run popular food festivals at their Barbeque Nation Restaurants, thereby offering customers a range of Indian and international cuisines.
  • The fixed price ‘all you can eat’ concept at their Barbeque Nation Restaurants offers customers a varying spread of consistently delicious food at a value-oriented price in a pleasant and casual dining environment. The Company believes that barbeque cuisine is distinctively attractive as compared with other dining options due to its DIY and cooked-at-the-table nature and the flexibility and fun of mixing and matching a wide variety of meats, vegetables, sauces and condiments to create dishes according to each diner’s individual tastes and preferences. In addition, fixed price dining is very popular amongst relatively larger groups, due to customers’ perception of value for money and the comfort of certainty over the bill amount irrespective of varying individual appetites and consumption.
  • Barbeque Nation Restaurants typically offer customers at least five vegetarian and five non-vegetarian largely pre-cooked appetisers they can season and barbeque on a grill embedded in their table, an all-you-can-eat main course buffet and a selection of desserts.
  • In addition, the Company launched UBQ by Barbeque Nation in 2018 to provide à la carte Indian cuisine and launched Barbeque-in-a-box in 2020 to cater to the growing delivery segment. Further, the Company launched its Biryani Brand ‘Dum Safar’ in September 2022. With an expansive network and brand recognition, Barbeque Nation continues to be a staple in most metro and tier-1 and 2 cities. The Company has a majority stake in ‘Red Apple Kitchen’, which operates 14 Italian cuisine restaurants under the popular brand “Toscano”.
Earnings Presentation Q4 FY23

RECENT FINANCIALS / NEWS:

  • Q4 and Full Year FY23 Press and Earnings Presentation Q4 FY23
    • During the year, the Company added 39 new restaurants resulting in total count of 216. Total restaurants included 14 Toscano restaurants, 6 Barbeque Nation international restaurants and balance 196 were Barbeque Nation India network
    • Commenting on the business, Mr. Kayum Dhanani, Managing Director, said: “Our performance for the year was encouraging despite the prevailing demand softness across the industry. During the year, Barbeque Nation brand achieved the milestone of becoming the 1st Indian full-service CDR brand to reach ₹1,000+ crore revenues in a year. This achievement is a testament to the brand’s growth potential and we will strive to achieve many more such milestones in future. Our relentless focus over past years have resulted in creating multiple growth levers for the Company such as Toscano, international business and delivery vertical. We believe the share of contribution for these businesses will further increase in the overall revenue and profitability mix, which will further strengthen our position as diversified food services company.”
    • Commenting on the performance, Mr. Rahul Agrawal, CEO and Whole Time Director, said: “As a market leader in the Indian Casual Dining Restaurant, we are proud to report that Barbeque Nation brand has crossed annual revenue of ₹1,000+ crores in FY23. We had an overall encouraging performance in FY23 with revenue growth of 43%, EBITDA growth of 49% and reported EBITDA margins of 19.3%. We continue to remain focused on enhancing guest experience through upgraded store designs, elevating culinary experience and service culture, thereby becoming the preferred destination for celebration. As a diversified Indian food services company, we will continue to invest in Barbeque Nation along with our other brands namely Toscano, UBQ and Dum Safar.”
Q4 and Full Year FY23 Press
Earnings Presentation Q4 FY23
Earnings Presentation Q4 FY23
  • Barbeque Nation: After falling 64% from record high; Nuvama sees massive 82% upside (mintgenie) February 2023
    • Strong execution led by a highly scalable business model: The CDR market is tough to scale due to a high number of stock-keeping units (SKUs) compared with a quick-service restaurant (QSR), which makes standardisation difficult in this industry. However, BNHL is an outlier in this segment, as it scaled up its restaurant network relatively faster compared with peers, and a majority of its restaurants are profitable with superior store-level economics, noted the brokerage.
    • Nuvama further pointed out that BNHL’s growth is also supported by developing standardised food packets for its dishes and maintaining long-term contracts with dedicated vendors for sourcing raw materials. Most importantly, BNHL focuses on only two brands – BBQN (UBQ and Barbeque-in-a-Box revolve around the core brand BBQN) and Toscano, which makes developing and maintaining SOPs relatively easier, it added.
  • Barbeque Nation IPO is Domino’s gain: Jubilant FoodWorks doubles its money in just two months (Financial Express) March 2021
    • In percentage terms, Jubilant FoodWorks now owns a 10.72% stake in the company, making it the third-largest shareholder behind promoters SHKSL and Tamara Private Limited. In less than two months since the pre-IPO placement, the value of Jubilant FoodWorks’ stake has doubled to Rs 182 crore at the higher end of the IPO price band. However, it is not known if Jubilant FoodWorks is looking to sell its gains on listing or hold the stake. (See: Jubilant FoodWorks (NSE: JUBLFOOD / BOM: 533155): Inflation Bites as They Aggressively Expand Domino’s Pizza)
  • Jubilant Foodworks To Acquire 10.76% Stake In Barbeque Nation (YouTube) 1:06 Minutes (moneycontrol) January 2021
    • Jubilant Foodworks Ltd will invest Rs 92 crore to buy a 10.76% stake in Barbeque Nation Hospitality Ltd (BNHL), which runs the popular Barbeque Nation (BBQ) chain of restaurants. Here’s more

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