Navigating
Challenges,
Embracing Opportunities
Rahul Agrawal
CHIEF EXECUTIVE OFFICER
& WHOLE-TIME DIRECTOR
Kayum Razak Dhanani
MANAGING DIRECTOR
Dear Shareholders,
As we reflect on the past financial year, it is with a sense of pride
and optimism that I address you today. Despite a challenging operating environment marked
by fluctuating demand and economic uncertainties, BNHL has continued to make substantial
strides in its journey towards strategic consolidation and diversified growth. Our
commitment to delivering exceptional dining experiences and enhancing shareholder value is
even stronger now.
The fiscal year saw varying dynamics, from subdued demand to
inflationary pressures which influenced consumer spending. However, our strategic focus on
diversification and robust operational execution enabled us to navigate these challenges
effectively. We continued to moderately expand our network, enhance our culinary
offerings, and invest in the guest experience, laying a solid foundation for sustainable
growth.
WEATHERING THE STORM, EMERGING STRONGER
As we emerged from the challenges posed by the pandemic, the dining
industry witnessed a surge in demand, driven by the lifting of lockdowns and the reopening
of the world. This resurgence presented both opportunities and challenges for BNHL. We
strategically consolidated our operations, with portfolio rationalization and term
optimisingour sustainability. This difficult but necessary decision allowed us to
streamline our focus and resources, positioning us for future growth.
We remained committed to expanding our footprint and focused on
moderated expansion for the year and opened 13 new restaurants across brands. This
balanced approach of consolidation and expansion has strengthened our market position and
enhanced our ability to serve our customers better.
DIVERSIFYING FOR RESILIENCE
Recognizing the need for a multifaceted approach, we simultaneously
embarked on a journey of diversification. We expanded our online delivery brands,
leveraging technology to reach a wider audience and meet the evolving preferences of our
customers.
Additionally, the strategic acquisition of Salt, a premium casual
dining brand, marked a significant milestone in our diversification strategy. This
acquisition allowed us to tap into new market segments, strengthen our position in the
premium dining category, and enhance our brand portfolio.
The integration of Salt's operations with our existing
infrastructure has been seamless, and we are excited about the synergies and growth
opportunities this acquisition presents.
Charting the course for future success
As we look ahead, our focus remains on maintaining our leadership
position in the casual dining restaurant (CDR) segment. We have identified four key areas
that will drive our future growth and success:
BARBEQUE NATION
INDIA DINE-IN
We are committed to enhance the guest experience at our core
Barbeque Nation outlets across
India and drive same-store sales growth (SSSG) and profitability. Our
cost optimization strategies and asset upgrades will further strengthen our operational
efficiency and competitiveness.
SCALING EMERGING VERTICALS
We see immense potential in our emerging verticals, and we are poised
to capitalize on this growth opportunity. Toscano and Salt will be a key focus area, with
expansion-led growth and a focus on maintaining SSSG and profitability.
Our international Barbeque Nation operations will also see calibrated
expansion, while ensuring SSSG and profitability in existing markets.
DELIVERY
We will continue to drive volume growth in our delivery vertical, UBQ,
while also increasing market penetration for our biryani brand, Dum Safar. By leveraging
our strong brand reputation and culinary expertise, we aim to capture a larger share of
the growing delivery market.
PORTFOLIO DIVERSIFICATION
To further strengthen our position in the food services industry, we
will actively explore opportunities to expand our brand portfolio through organic growth
and strategic acquisitions. This diversification will enable us to tap into new market
segments and enhance our overall value proposition to our customers and shareholders.
STRENGTHENING BRAND EQUITY
In FY24, we invested significantly in marketing and brand-building
initiatives to enhance our visibility, engage with our customers, and strengthen our brand
equity. Our digital marketing campaigns, leveraging social media platforms and targeted
advertising, have been instrumental in reaching a wider audience and communicating our
unique value proposition. We have also focused on experiential marketing, organising
engaging events and promotions at our restaurants to create memorable experiences for our
customers.
These initiatives have not only driven footfall but also fostered a
strong emotional connection with the Barbeque Nation brand.
EMPOWERING OUR TEAM
At BNHL, we firmly believe that our people are the driving force behind
our success. Throughout the year, we focused on nurturing a culture of growth,
development, and well-being. Our comprehensive people initiatives included targeted
training programs, leadership development workshops, and employee engagement activities.
By investing in our team, we ensure that BNHL continues to thrive and deliver exceptional
service to our customers. We have also implemented robust talent management strategies to
ensure a steady pipeline of skilled professionals who can drive our future growth. During
the year, we started initiatives such as "Her Power", which focuses on
empowering women through increased participation in our overall workforce. Further, we are
also focused on enhancing skill development through our programs such as "Hunar ki
Udaan".
INTEGRATING SUSTAINABILITY INTO OUR BUSINESS
BNHL is committed to integrating ESG principles into our business
operations and decision-making processes. We have established a robust ESG framework that
aligns with global best practices and the United Nations Sustainable Development Goals
(SDGs). Our environmental initiatives include waste management, water conservation, and
the promotion of sustainable sourcing practices. We have implemented measures to reduce
food waste, recycle materials, and minimise our overall environmental footprint. Our
social initiatives focus on employee well-being, diversity and inclusion, and community
development, while our governance practices emphasise transparency, accountability, and
ethical conduct. We have also engaged with external stakeholders, such as investors,
regulators, and industry associations, to align our ESG strategies with their expectations
and
80+ Cities
AN EXTENSIVE PRESENCE ACROSS 80+ CITIES AND A STRONG BRAND REPUTATION,
WE ARE POISED TO EXPLORE NEW AVENUES OF GROWTH AND DELIVER EXCEPTIONAL
VALUE TO OUR SHAREHOLDERS STRATEGIC REVIEW contribute to the
broader sustainability agenda. Our commitment to ESG has been recognized by various
industry bodies and sustainability indices, further strengthening our brand reputation and
investor confidence.
GIVING BACK TO THE COMMUNITY
In the past years, BNHL has undertaken several impactful CSR
initiatives focusing on governance and sustainability. Notably, the Company conducted a
Tree Plantation Drive at the CRPF campus in Bangalore in association with the NGO
Jeevanmukti. Additionally, BNHL organised an Iftar Party for NGO children across regions,
fostering community development and inclusivity.
These initiatives align with our commitment to environmental
stewardship, social responsibility, and ethical governance practices.
POISED FOR CONTINUED SUCCESS
As we look ahead, we are confident that BNHL is well-positioned for
continued success. Our strategic consolidation and diversified growth approach have
strengthened our foundation, allowing us to navigate challenges and seize opportunities
with agility. With an extensive presence across 80+ cities and a strong brand reputation,
we are poised to explore new avenues of growth and deliver exceptional value to our
shareholders. Our focus on innovation, customer centricity, and operational excellence
will continue to drive our success in the years to come. We are excited about the
potential of our diversified business model.
On behalf of the entire BNHL family, we extend our heartfelt gratitude
to you, our valued shareholders, for your unwavering support and trust. Together, we will
continue to shape the future of the hospitality industry, one delightful dining experience
at a time.
Kayum Razak Dhanani |
MANAGING DIRECTOR |
Rahul Agrawal |
CHIEF EXECUTIVE OFFICER & |
WHOLE-TIME DIRECTOR |