Barbeque Nation Hospitality Ltd. will launch a Rs 452.87-crore maiden offer starting Wednesday, deriving optimism from last year’s IPO rush that extended into 2021.
Financials
The company’s business has recovered to 84.2% of the pre-pandemic level at the end of November 2020. It, however, suffered a Rs 100-crore loss during the period.
Footprint
Casual Dining Landscape
In a casual dining restaurant, food is typically priced at Rs 250-1,000, excluding taxes, with table services and some restaurants offering eclectic high-quality interiors. These bridge the gap between quick-service and fine dining restaurants.
The casual dining segment—comprising restaurants such Moti Mahal, Barbeque Nation, Toscano, Café Zoe, Flavours of Italy, Rajdhani, Pizza Hut and Sarvana Bhavan—had 4,700-5,200 outlets in FY20 across India compared with 1800-2000 in FY14. Newer formats such as Chilli’s, Farzi Café, Carl’s Jr. and Soda Bottle Openerwala, too, have taken a share of the pie.
Competition
Barbeque Nation competes with listed peers such as Speciality Restaurants in the dining segment, while some of its quick-servicing rivals are Westlife Development Ltd., Jubilant Foodworks Ltd. and Burger King.
Risk Factors
- The Covid-19 pandemic as well as the government’s measures to reduce the spread of virus have had a substantial impact on the restaurant operations and the timing of how long the pandemic and the related government measures will last is still uncertain.
- Deterioration in the performance of, or its relationships with, third-party delivery aggregators (online restaurant aggregators), may adversely affect the business, results of operations and financial condition.
- Unable to implement its growth strategy successfully, including in relation to selecting cities and locations for new restaurants.
- If it is unable to continue to build the Barbeque Nation brand or the Toscano brand.
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