INDIA – Jubilant FoodWorks, the operator of Domino’s Pizza chain and the Dunkin’ Donuts coffee and doughnut chain in India, has announced plans to buy 10.76% stake in Barbeque Nation Hospitality Ltd (BNHL), which runs the popular Barbeque Nation (BBQ) chain of restaurants.
BNHL owns and operates 138 Barbeque Nation brand of casual dining restaurants that offer over-the-table barbeque live grills for diners in 73 cities across India, besides seven restaurants overseas.
According to latest available data, in fiscal 2019, BNHL- which also has a presence in the Italian cuisine segment under the brand, Toscano – posted a consolidated total revenue of ₹742.5 crore (about US$101 million) and a net loss of ₹38 crore (about US$5.17 million).
The acquisition which will cost about US$12.53 million (₹92 crore ) will offer Jubilant FoodWorks – has been expanding its presence in the dining-out market, across cuisines and formats- a larger play in India’s organized food services market.
In a regulatory filing Jubilant FoodWorks noted that it will acquire 36,50,794 fully paid-up equity shares of face value of ₹5 each, adding that that all-cash deal is expected to conclude by 25 January.
Commenting on the stake acquisition, Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant Foodworks, said: “We are happy to announce our investment in Barbeque Nation, a differentiated, casual dining restaurant brand of scale with strong unit economics”.
Earlier this year, BNHL received approval from the Securities and Exchange Board of India (Sebi) for an initial public offering, PTI reported, citing draft papers filed with Sebi.
BNHL is promoted by Sayaji Hotels Ltd, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani, and Suchitra Dhanani.
In November 2018, the food services company also launched UBQ by Barbeque Nation, an à la carte Indian cuisine brand in the value segment, according to a draft prospectus filed by the company in February this year.
Jubilant Foodworks on the other hand, recently announced the launch of a new restaurant chain selling biryani under the Ekdum! brand, capitalizing on the popularity of the rice-based dish.
According to a report by LiveMint India, Biryani remains the most ordered dish across food delivery platforms Zomato and Swiggy.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
