Five Barbeque Nation Restaurants owned by Sayaji Hotels were transferred to the company in 2012.
They have steadily grown owned and operated Barbeque Nation Restaurant network from a single restaurant in Fiscal 2007 to 81 Barbeque Nation Restaurants in 42 cities in India and one restaurant in Dubai as of June 30, 2017. In addition, as of June 30, 2017, they had granted the franchise rights of one Barbeque Nation Restaurant.
1) The Indian economy is expected to reach an estimated US$3.5 trillion by Fiscal 2020. Food services are emerging as a key segment in the Indian economy, with an overall market worth of US$50 billion as of Fiscal 2017, which is approximately 8 times bigger than hotels.
2) The contribution of Food Services is close to 2.3% of India’s GDP in 2017 which is expected to go 2.6% by 2022.
3) It is estimated that Indians spend 8% to 10% of their food expenditures outside the home in restaurants, cafeterias and other food establishments. This trend is expected to strengthen in future.
4) Indian consumers are dining out more frequently and younger Indians are shedding the biases of their elders against international franchises and foreign foods. There is plenty of room for growth in the industry.
5) The revolution in this sector began in Fiscal 1996 with the opening up of restaurants by McDonald’s, Pizza Hut, Domino’s followed by entry of brands like Subway and Barbeque Nation after 2000 and expansion of well-known home grown brands like Haldiram’s and Moti Mahal. The food services market has been growing and it has witnessed many changes with respect to rising disposable income, availability of quality labour force and use of technology.
The way we are moving towards in time with rising disposable income everyone wants good delicious food, spent time with dear and near ones, get relax from work but not worrying to shed out that extra from pocket which will be the key to success for these Restaurant Chains in future.
You go out in these restaurants and try to find seats without waiting. If you get one, you are lucky but this is quite rare.This shows the revenue visibility of these Restaurant Chains in India if managed and expanded well.
The margins in the food service is huge which is another big positive for these companies.
Today we have the largest youth population in the world. As per survey, the age group between 20-35 is highest in the world. The youth love to party and dining out and if they get places like Barbeque Nation which serve hot and delicious the future looks very bright for such restaurant chains.
1. Barbeque Nation(FY17 Standalone)
Revenue= 489 Cr
EBITDA= 70 Cr
PAT= 15 Cr
EBITDA Margins= 14.31%
PAT Margins= 3.06%
2. Jubilant Food( FY-18 Standalone)
Revenue= 3000 Cr
EBITDA= 466 Cr
PAT= 206 Cr
EBITDA Margins= 15.33%
PAT Margins= 6.86%
Private equity firm CX Partners-backed casual dining restaurant chain Barbeque Nation Hospitality Ltd has raised ₹80-90 crore in a pre-IPO placement from Alchemy Capital Management, an investment firm co-founded by ace stock market investor Rakesh Jhunjhunwala in 2017.
As per sources, the Pre-IPO placement was done at 2300-2400 Cr Valuation. So with an Equity of 2.7 Cr in FY17, the Pre-IPO placement would have done at Rs. 890 per share at least.
They have filed a DRHP for IPO in 2017, however same is still not finalized.