Jan 7, 2021
Jubilant FoodWorks Ltd, which operates the Domino’s Pizza chain and the Dunkin’ Donuts coffee and doughnut chain in India will invest ₹92 crores to buy a 10.76% stake in Barbeque Nation Hospitality Ltd (BNHL), which runs the popular Barbeque Nation (BBQ) chain of restaurants.
“The company will acquire 36,50,794 fully paid-up equity shares of face value of ₹5 each aggregating to a 10.76% stake in BNHL.
The acquisition will offer Jubilant FoodWorks a larger play in India’s organized food services market. Jubilant FoodWorks has been expanding its presence in the dining-out market, across cuisines and formats.
Earlier this month, the company announced the launch of a new restaurant chain selling biryani under the Ekdum! brand, capitalizing on the popularity of the rice-based dish. Biryani remains the most ordered dish across food delivery platforms Zomato and Swiggy. It will now also own a share in the casual dining market through the investment in Barbeque Nation.
BNHL owns and operates 138 Barbeque Nation brands of casual dining restaurants that offer over-the-table barbeque live grills for diners in 73 cities across India, besides seven restaurants overseas. It also has a presence in the Italian cuisine segment under the brand, Toscano. According to latest available data, in fiscal 2019, BNHL posted a consolidated total revenue of ₹742.5 crore and a net loss of ₹38 crore.
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.