About the Company:
Barbeque Nation Hospitality Ltd owns and operates Barbeque Nation Restaurants, one of India’s leading casual dining restaurant chains.
Company also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.
Company believe the value we offer, the nature and quality of our food offerings and the ambience and service of our restaurants create a one-of-a-kind overall customer experience.
Through Barbeque Nation Restaurants, company pioneered the format of ‘over the table barbeque’ concept in Indian restaurants.
Barbeque Nation Restaurants, compared to other fixed price dining options, offer competitive attractions such as a wide range of vegetarian and non-vegetarian appetisers and main courses, a popular dessert menu, a pleasant and casual dining environment and prompt service thereby making it a popular destination for celebrations.
Company also periodically runs popular food festivals at Barbeque Nation Restaurants offering guests a range of Indian, international and fusion cuisines.
As of December 31, 2020, company had 7,298 full-time employees in Company and its Subsidiaries organised, supported and incentivised to maximise productivity.
The first Barbeque Nation Restaurant was launched in 2006 by SHL (Sayaji Hotels Ltd, Listed company on BSE), one of the Promoter.
Company launched the first Barbeque Nation Restaurant in 2008, and subsequently acquired five Barbeque Nation Restaurants owned by SHL in 2012.
Company has steadily grown the Barbeque Nation Restaurant network from a single restaurant in 2008 to 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as of December 31,
“Toscano”, a casual dining Italian:
Barbeque Nation owns 61.35% of the equity share capital on a fully diluted basis of one of our Subsidiaries, Red Apple, which owns and operates nine restaurants under the brand name, “Toscano”, a casual dining Italian restaurant chain.
Company also operates one restaurant each under the brand names “La Terrace” and “Collage” respectively.
The first Toscano Restaurant commenced operations in June 2008 and, as of December 31, 2020, company operated eleven Italian Restaurants, nine of which are under the brand name “Toscano”, in three cities in India.
UBQ by Barbeque Nation:
In November 2018, company launched UBQ by Barbeque Nation Restaurant to provide a la carte Indian cuisine in the value segment.
UBQ by Barbeque Nation provides a la carte Indian cuisine in the value segment, initially through leading food delivery service providers for the delivery of our food.
At present, UBQ by Barbeque Nation Restaurant predominantly caters to the delivery segment.
As of December 31, 2020, we were providing delivery in 77 cities in India of a la carte Indian cuisine under UBQ by Barbeque Nation from our existing kitchen infrastructure.
Delivery Focus with Product Innovation:
Company’s delivery business has grown from Rs.26.0 crores in Fiscal 2020 to Rs.37.8 crores during the eight months ending November 30, 2020. We will continue to focus on the delivery segment and will continue to work on improving our product offering in relation to consistency, quality, recipes, delivery menu and meal combos.
One of company’s delivery products, “Barbeque-in-a-Box,” that we launched in June 2020, provides a wide range of starters, main course and desserts.
This is in addition to two other products, “Grills in a Box” and “Meals in our Box”, which are offered through delivery among other offerings.
Company will continue to work towards increasing the average daily sales of these products and these variants. Company’s average daily delivery sales per restaurant was Rs.5354 in Fiscal 2020.
Key financial metrics, on a consolidated restated basis:
Following are the number of Owned and Operated restaurants since Fiscal 2018:
- Mr. T Narayanan Unni (Designation: Chairman, Non-Executive, Independent Director)
- Mr. Kayum Dhanani (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 272 cr)
- Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale, Company will not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 180 cr)
- Capital expenditure for expansion and opening of new restaurants by the Company.
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company on a consolidated basis.
- General corporate purposes.
|Particulars||Amount (Rs. in Crores)|
|Capital expenditure for expansion and opening of new restaurants by the Company||54.6|
|Prepayment or repayment of all or a portion of certain outstanding borrowings obtained by our Company on a consolidated basis||75.0|
Company plans to leverage the brand equity of our brand, “Barbeque Nation”, to expand within existing markets and explore new markets with the intent to expand the footprint and further increase our market share.
As per our growth plans, company plans to expand by setting-up new Barbeque Nation restaurants in metros, Tier I and Tier II cities in India in order to meet the growing demand of casual dining restaurants amongst consumers within these markets.
Company intends to utilize a portion of Net Proceeds aggregating to Rs.54.6 crores for setting up 26 new Barbeque Nation Restaurants during Fiscal 2022 and Fiscal 2023. The premises for the proposed new restaurants are expected to be leased.
No. of Barbeque Nation Restaurants to be opened using the Net Proceeds:
Positives for the Company:
Barbeque Nation is one of India’s fastest growing and widely recognised restaurant brands.
Company has steadily grown our owned and operated Barbeque Nation Restaurant network from a single restaurant in 2008 to 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as of December 31, 2020.
Steady growth in covers and consistent APC (Average Per Cover).
Company has experienced consistent cover growth in recent Fiscals. The number of in-dining covers served at Barbeque Nation Restaurants in India increased from 6.86 million in Fiscal 2017 to 9.92 million in Fiscal 2020 at a CAGR of 13.08%.
In addition to consistent cover growth, the APC (excluding revenues from UBQ and taxes) for dine-in customers at Barbeque Nation Restaurants in India (excluding food delivery) has grown from Rs.707 in Fiscal 2017 to Rs.764 in Fiscal 2020 at a CAGR of 2.62%.
Relatively higher average bill size.
Barbeque Nation Restaurants has attracted groups with an average customer size of between four and five customers in last three Fiscals leading to a relatively higher average bill size.
Company’s average bill size (excluding taxes) for Barbeque Nation Restaurants owned and operated by us in India was Rs.3026, Rs.3215, Rs.3,249 and Rs.2757 in Fiscals 2018, 2019, 2020 and in the eight months ended November 30, 2020, respectively.
Fixed price ‘all you can eat’ concept.
Company’s fixed price ‘all you can eat’ concept at Barbeque Nation Restaurants offering customers a varying spread of consistently delicious food at a value-oriented price in a pleasant and casual dining environment.
The 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.
Strong business processes and back-end systems leading to efficient operations.
Company benefits from strong processes and systems that have been established over the past 14 years of Company’s operation.
Company’s rent (including lease rentals, common area maintenance charges) was Rs.1,059.94 for Fiscal 2020 and rent to revenue ratio was 12.46% on a consolidated basis.
As of December 31, 2020, company also had two commissaries, one each in Delhi NCR and Mumbai, which serve a number of nearby Barbeque Nation Restaurants by preparing dishes on a volume basis and further realising economies of scale.
Compensation for our Barbeque Nation Restaurant managers is linked to GSI, sales and profitability of their restaurant, which we believe promotes a culture of responsibility for customer service, revenue and costs.
Continue expansion in Indian cities.
Company’s strong presence in the Indian market positions us well to capitalise on the anticipated growth in consumer spending from expected increases in the level of disposable income in India.
Company intends to increase both revenues and profits by opening new Barbeque Nation Restaurants and new Toscano Restaurants.
Company opened 23, 24 and 21 new Barbeque Nation Restaurants in Fiscals 2018, 2019 and 2020 respectively. As of December 31, 2020, two Barbeque Nation Restaurants were in the construction phase and we plan to launch them in Fiscal 2021.
Company will continue to further expand our Barbeque Nation Restaurant network in Metro cities, Tier I, Tier II and Tier III cities in India.
Expansion through owned & franchise formats in select international markets.
Company intends to continue to roll out primarily owned and operated restaurants and franchise owned (whether franchise or company operated) restaurants in select international cities.
Company currently operates two International Barbeque Nation Restaurants in Dubai, two International Barbeque Nation Restaurants in Abu Dhabi, one International Barbeque Nation Restaurant in Kuala Lumpur and one International Barbeque Nation Restaurant in Muscat.
Financials of the Company: (Consolidated)
|(in Crores)||FY 18||FY 19||FY 20||30th Nov 20|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Barbeque-Nation Hospitality Ltd||5||(11.7)||NA||(556.59%)||(5.33)|
|Westlife Development Ltd||2||(0.47)||NA||(1.27%)||37.07|
|Speciality Restaurants Ltd||10||(8.09)||NA||(23.20%)||34.88|
|Burger King India Ltd||10||(2.87)||NA||(27.80%)||10.31|
|Issue Opens on||24th March 2021|
|Issue Closes on:.||26th March 2021|
|Issue Price||Rs.498 – 500|
|Retail Category Allocation||10%|
|Minimum Lot||30 Shares|
|Issue Size||Rs.452.8 cr ($61 million)|
|Market Cap||Rs.1877 cr ($253 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||36,00,000|
|Equity Shares Offered (OFS)||54,57,470|
|Total Equity Shares Offered (Fresh + OFS)||90,57,470|
|Equity Shares Prior to the Issue||3,39,42,920|
|Equity Shares after the Issue||3,75,42,920|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||on or Before 1st April 2021|
|Initiation of Refunds||on or Before 5th April 2021|
|Credit of Equity Shares:||on or Before 6th April 2021|
|Listing Date:||on or Before 7th April 2021|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)||Shares Offered||24th March||25th March||26th March|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
Link InTime Website: https://linkintime.co.in/PublicIssue/
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Barbeque-Nation Hospitality Limited
Sy. No. 62, Site No.13,
6th Cross, N.S. Palya, BTM Layout,
Bengaluru 560 076
Tel: +91 80 4511 3000
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083
Tel: +91 22 4918 6200