Barbeque Nation Hospitality Limited , a leading casual dining restaurant chain, reported a 2.8% year-on-year decline in consolidated revenues for the quarter, amidst ongoing challenges in same-store sales growth (SSSG). The company's financial results, discussed in a recent earnings call, highlight both the headwinds faced by its core business and the growth potential in its diversified segments.

Revenue and SSSG Performance

The company's consolidated revenues stood at Rs. 297.00 crores for the quarter, down from the previous year primarily due to negative SSSG of 3.4%. Barbeque Nation India, the core business segment, faced significant headwinds with revenues declining 7% to Rs. 229.00 crores and SSSG falling 5.2%.

Segment-wise Performance

Barbeque Nation India

• Revenue: Rs. 229.00 crores (down 7% year-on-year)
• SSSG: -5.2%
• Challenges: Softer dine-out cycles, competitive pricing pressure, reduced corporate demand

International Operations

• Revenue: Rs. 26.30 crores (up 10% year-on-year)
• SSSG: +8.5%
• Performance: Strong growth and profitability

Premium CDR (Casual Dining Restaurant) Segment

• Revenue: Rs. 43.10 crores (up 19% year-on-year)
• Growth: Rapid expansion with new restaurants added in Mumbai and Bangalore

Expansion and Strategic Initiatives

Despite the challenges, Barbeque Nation continues to focus on network expansion:

• Added 7 new restaurants during the quarter
• Current portfolio: 236 restaurants across three segments
• Expansion target: 300-325 restaurants by FY27

The company is implementing several strategic initiatives to address the SSSG challenges:

1. Redesigning restaurant prototypes to be 20-25% smaller, reducing capital expenditure
2. Increasing marketing spend by 1% of sales to drive volume recovery
3. Launching new culinary offerings and value-driven promotions
4. Strengthening the operations team, including hiring a new Chief Operating Officer for the Barbeque Nation India business

Financial Highlights

Management Commentary

Kayum Dhanani, Managing Director, stated, "We operated through a softer dine-out cycle, yet our resilient business model allowed us to maintain satisfactory performance. We remain firmly on track to achieve our network target of 300-325 restaurants by FY27."

Rahul Agrawal, CEO and Whole Time Director, added, "We are continuing to focus on our guest experience. We are coming up with new food festivals and giving the guest offering variety in the stores and also coming up with value offers like Sizzling 7@777."

Outlook

While facing challenges in its core Barbeque Nation India segment, the company remains optimistic about its growth prospects in the International and Premium CDR segments. Management emphasized their commitment to operational rigor, consistent guest engagement, and strategic expansion to drive future growth and margin resilience.

Investors and analysts will be closely watching Barbeque Nation's efforts to revive same-store sales growth in its core business while capitalizing on the growth opportunities in its other segments.

Barbeque Nation Hospitality Limited , a prominent player in the Indian casual dining sector, has announced a significant addition to its leadership team. The company has appointed Tarun Khanna as an Independent Director for a five-year term, spanning from May 22, 2025, to May 21, 2030.

Shareholders' Approval and Appointment Process

The appointment of Tarun Khanna was approved by the company's shareholders through a postal ballot conducted via remote e-voting on July 31, 2025. This decision followed recommendations from both the Nomination and Remuneration Committee and the Board of Directors, underscoring the company's commitment to robust corporate governance practices.

Tarun Khanna's Professional Background

Tarun Khanna brings a wealth of experience to Barbeque-Nation's board. He is currently a Partner at CX Advisors LLP, an advisory firm to CX Partners, a growth and buyout-oriented private equity fund focused on India. In his role, Khanna is responsible for identifying, investing in, monitoring, and exiting investments in the consumer products and service sector.

Khanna's impressive career spans various sectors of the financial industry:

• He has extensive experience in investment banking, having previously held positions at Yes Bank and Citigroup.
• At Yes Bank, he served as a Director in the investment and corporate banking business, where he was responsible for originating M&A and capital raising transactions across North and East India.
• Prior to Yes Bank, Khanna spent four years at Citigroup's corporate and investment banking business.
• He also has experience in commercial finance, having worked at GE's commercial finance business for 18 months.

Board Positions and Educational Background

Khanna's expertise extends to serving on the boards of several companies. He currently holds board positions in various portfolio companies, including:

• Sapphire Foods
• Mrs. Bectors Foods
• Thyrocare Technologies

His educational background includes an MBA from the University of Baltimore and a B.S. in Engineering from the University of Maryland, providing him with a strong foundation in both business and technical fields.

Implications for Barbeque-Nation

The appointment of Tarun Khanna as an Independent Director is expected to bring valuable insights and strategic guidance to Barbeque-Nation Hospitality Limited. His extensive experience in investment banking, private equity, and his involvement with various consumer-focused companies align well with Barbeque-Nation's position in the casual dining sector.

Compliance and Disclosure

In compliance with regulatory requirements, Barbeque-Nation has confirmed that Tarun Khanna is not debarred from holding office by virtue of any SEBI Order or any other authority. The company has also disclosed that Khanna has no relationships with other directors of the company, ensuring independence in his role.

As Barbeque-Nation Hospitality Limited continues to navigate the competitive landscape of the Indian restaurant industry, the addition of Tarun Khanna to its board signals the company's commitment to strengthening its governance and strategic capabilities.