An aggressive expansion plan by this restaurant company

By IANSlife

New Delhi, Nov 14 (SocialNews.XYZ) According to the National Restaurant Association of India (NRAI), the Indian food service industry which was estimated to grow to Rs 4.9 trillion in FY20-21 barely managed to generate 40 per cent of its projected revenues and reached only Rs 2 trillion that year. The industry is now pegged to reach about Rs 4.7 trillion in FY21-22. While restaurants did suffer a body blow from the pandemic, the organised food service industry, NRAI said, has the potential to contribute Rs 8,300 crore in the form of direct taxes and Rs16,600 crore as GST to the exchequer by FY25.

Lite Bite Foods, the parent company of Punjab Grill plans an aggressive pan India and International expansion. It aims to make Punjab Grill a Rs 500 crore-brand, opening 78 new outlets in next four years with an investment of ?200 crore. The brand is currently clocking around Rs 120 crore in revenues. The multi-award-winning F&B conglomerate that runs brands like Zambar, YouMee, Tres, Hahn's Kitchen, and The Artful Baker; is geared up to expand the footprint of brand Punjab Grill to a total of 100 outlets in India in the next 4 years with an investment of about Rs 200 crore.

With 22 company-owned outlets across six cities, currently, the expansion of the brand will take place through new outlets in tier one and tier two markets such as Kolkata, Hyderabad, Ahmedabad, and Chandigarh. Mall presence is another key area adding to the brand's growth and LBF is closely working with mall operators in cities such as Lucknow, Indore, Pune, and Bengaluru.

Known for its good quality north Indian food, Punjab Grill has gained a fan base overseas as well. It even survived the pandemic, credit for which goes to high order-in demand for Indian food and internal restructuring of LBF to become a leaner company.

"We have come out of it (pandemic) and we want to grow our business sensibly. We want to put the money where we can get returns. Witnessing the huge potential of North Indian cuisine, it is safe to say, Punjab Grill is the growth engine for LBF. Dine-in sentiments are improving in the country and looking at our October numbers, many of our restaurants are back to 2019 levels and some outlets have even witnessed growth over the pre-pandemic levels. That is definitely bringing back confidence in our business. Additionally, our delivery business which used to be just 8-10 per cent of our entire revenue pie is now almost 25 per cent of the business," said Rohit Aggarwal, Director, LBF.

Each outlet costs approximately 2.25-2.4 cr, apart from the rentals. The fresh infusion will be done mostly through internal accruals to make Punjab Grill a Rs 500 crore topline brand by 2026.

The brand has five outlets overseas with three company-owned outlets in Washington DC, The Ritz Carlton, Abu Dhabi and the newest addition is at The Oberoi Dubai, launched in September 2021. LBF is being approached by luxury hotels in the GCC countries and looking at a steady international expansion of its flagship brand.

The company's aggressive expansion plans come at a time when restrictions on the restaurant industry have largely been eased across states. The sector has bounced back strongly, especially in the quick-service and casual dining restaurant segments.

Source: IANS