Barbeque Nation, an Indian casual dining restaurant chain, has witnessed strong growth of over 29 per centYoY, over the last four years. The brand attributes its business performance to factors including constant menu innovation, food festivals, operational efficiencies at the backend and tapping the potential of metro, tier one and select tier two and three cities.
The CDR segment typically witnesses 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 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 an enterprise in India, the brand began operations overseas in 2016, with the launch of three outlets in Dubai and is focusing on a few other countries in the region.
Kayum Dhanani, managing director, Barbeque Nation Hospitality, 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, 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.”
The casual dining market in India is evolving constantly; in particular, tier two cities 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 being accounted for by tier one & two cities.
The chain CDR segment grew at a 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 centre stage in defining brands and their propositions in future.