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The Success Story of Barbeque Nation

In the time when most restaurants are having a very concise span and close after a year around. I’m here to share with you the success story of India’s fastest-growing and largest food chain “Barbeque Nation.”

Story of Barbeque Nation

It all started back on a cold night in November 2005. When in a hotel in Indore of the famous hotel chain of “Sayaji hotels” restaurant manager Mr. Prosenjit Choudhary, he got complaints from various customers about their appetizers getting cold when reached on to their tables. Mr. Prosenjit pitched an idea of putting mini live-grills on the customer’s table to keep food hot and fresh; to his boss, who was then MD of Saiyaji Hotels Mr. Sajid Damani. Mr. Sajid Dhamani liked the idea and accepted it. Mr. Choudhary then began serving kebabs, which were 90% cooked on the live-grills, that were installed on the table of the customers.

Barbeque Nation's Kayum Dhanani on the Brand Success



 

Mr. Prosenjit got this idea from the television show, where he saw, some nomads were facing a similar problem while camping on river banks. They then came up with a unique idea. They erected a grill using stacked armor, and roasted meat on it. Mr. Choudhary incorporated this ’DIY’ concept of ‘over-the-table-grill’ in their Indore Hotel. Customers liked that, and it was an instant hit. Soon after that, they started the first outlet of Barbeque Nation in Pali Hills, Mumbai. Mr. Sajid Damani was MD of Barbeque Nation, and Mr. Prosenjit Choudhary was the first CEO of the company. The first outlet reached break-even in 6 months, and Mr.Chaudhary observed 50% return of the customers

Expansion

By 2008, Barbeque chain had a significant presence in India with outlets in Chandigarh, Delhi NCR, Uttar Pradesh, Rajasthan, West Bengal, Maharashtra, and Karnataka. The company expanded because it provided great customer satisfaction compiled with delicious dishes, and customer feedback is incorporated within 24 hours of their complaint.

Millenium Mall | Barbeque Nation

The company offered many continental cuisines and kept innovating with their offerings. In 2014, barbeque nation added the concept of “kulfi nation”, a counter within each restaurant where customers can choose between 8 basic kulfi flavours, and unlimited quantities of 800 different combinations of dips, sauces, and toppings on the kulfis.

Empty Barbecue Clean Hot Flaming Grill Close-up Background Isolated
                             ** Note: Shallow depth of field

By 2015, Barbeque Nation inaugurated its 50th outlet in Mysore, Karnataka. 

by 2016, Barbeque Nation opened its 75th outlet in MI Road, Jaipur, Rajasthan. Barbeque Nation’s outlets now encompassed the length and breadth of the country, from Guwahati to Surat, and from Chandigarh to Chennai

The company currently has 140+ outlets in India, 4 outlets in UAE, 1 outlet in Malaysia, and 1 outlet in Oman.

Focus on QSR approach

A typical Barbeque Nation’s restaurant gives it’s customers an experience of CDR ( Casual Dining Restaurant), but in the backend, it has an approach of a QSR (Quick Service Restaurant). In Delhi, the Barbeque Nation has a central kitchen. “Products and marinades are supplied by our cold chain at the central kitchen. However, the marination and the grilling happen at the outlet kitchens. This way, our dependency on the chefs has also reduced because the process doesn’t need very high-quality chefs because all they have to do is assembling and dispensing the food. It makes our supply chain more efficient, helping us to expand to more locations,” says Dhanani.

SOME LESSER KNOWN FACTS ABOUT BARBEQUE NATION

  • The company had never closed down any of its outlets due to a lack of business since their operations have started.
  • On average an outlet of Barbeque Nations in Metros like Delhi, Mumbai, Kolkata, and tier 1 cities like Patiala, Raipur, Jhansi, etc reach break-even in around 0-3 months and tier 2 or 3 cities like Merrut, Mysore break-even reaches in around 0-6 months.
  • For Barbeque Nations, rent of their outlet is a significant factor so generally, they don’t open an outlet in the most prominent area like ground floors of the mall, but they open it in 3rd lanes or on the 3rd floor of the malls to keep rent in control.
  • Generally, the Rent to Revenue ratio of a Barbeque Nations outlet in Tier 1 cities is 10% whereas in Tier 2 or 3 cities it is usually 5%.
  • Pricing in tier 2 or 3 cities is 15% less than their Metro’s or tier 1 counterparts
  • Around 70% of the tables in the Barbeque Nations generally remain pre-booked.
  • They have a good margin from international operations of around 25-30%.
  • Average CAGR (Compounded Annual Growth Rate) of the past 5 years is around 24%
  • They have numerous USPs and, they also keep experimenting with their dishes and services and believe in innovating and improvising them.

The IPO (Initial Public Offering)

The company had filed the fresh papers with the market regulator SEBI in February 2020, to raise an estimated ₹1,000 -1,200 crore through an IPO.

The company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani (brother of Sajid Dhanani, who took over after his demise in 2012), Raoof Dhanani, and is backed by private equity firm CX Partners, which made its first investment in 2013 and again, in 2015.

In 2017, the company had filed IPO papers with SEBI seeking to raise ₹700 crores. However, the regulator kept the processing of the company’s proposed IPO in abeyance “pending regulatory action for past violations” and finally approved the IPO plan, in January 2018.

The company will now use the money raised through IPO to repay its debts, and also for international expansion.

That’s it, folks, Stay tuned until we meet again !!

P.S:- Only Gigantic businesses can’t make great wealth for you, sometimes huge success starts with small steps. Here’s my guide to personal finance which will enable you to take that small step today!!

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