Barbeque-Nation Hospitality Ltd

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:

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.