How much is Barbeque Nation franchise? Alternatives, Cost, Profit,

Are you aware of a brand that has pioneered the full-service casual dining industry and has recently surpassed ₹1,000 crore in annual revenue? Do you also aspire to become one of their partners?

In fiscal year 2023, Barbeque Nation opened nearly 39 restaurants across India and achieved a revenue milestone of ₹1,233 crore, up by 43.4% year-on-year. Now, that’s impressive growth.

More interesting facts are on the way; keep reading this informative piece on the Barbeque Nation franchise to discover more about its estimated cost, profit, and key alternatives.

• Brand: Barbeque Nation
• Founded: 2006
• Headquarters: Bengaluru, India
• Model: Franchise and self-operated
• No. of locations: 216+
• Area operated: Worldwide
• Space required: Over 2500 sq. ft.
• Total initial investment: ₹1 crore to ₹2 crore

Overview of Barbeque Nation franchise

Barbeque Nation was established in 2006 in Mumbai, and with a single outlet in the city, BN has grown into a chain of over 200 outlets across the country.

The chain is one of the leading fast-casual restaurants in India that has diversified its service portfolio in dine-in, delivery, and international spaces.

Starting with the concept of ‘over the table barbeque‘ live grills embedded in dining tables, the chain not only succeeded in offering an exemplary dining experience to its customers but also helped them maintain a stable network growth trajectory of 22% CAGR over the last 8 years.

According to the leading tech platform, Entrepreneur India, Kayum Dhanani (Managing Director) shared the real story of Barbeque Nation’s establishment. Sajid Dhanani, who was running popular Sayaji Hotels in Indore, came across customer’s complaints for cold appetizers during the winter.

To mitigate this issue, Sajid did an experiment by bringing “live grill” to the customer’s table, and viola! it became an instant hit. Today, you’ll find Barbeque Nation in more than 81 cities.

Key facts on Barbeque Nation

Why should you prefer Barbeque Nation franchise over its competitors?

1. India’s first ever brand (₹1,000 crore):
   • Barbeque Nation is unequivocally a leading player in the fast-casual restaurant industry in India, with over ₹1,000 crore in market value. Therefore, their brand amasses a larger customer base, leading to higher revenue.
2. High entry barrier:
   • Unlike other small restaurant businesses and QSR outlets, starting a restaurant like Barbeque Nation will require significant capital, potentially creating a higher entry barrier for startups aiming to reach the level of Barbeque Nation (BN).
3. Impressive year-on-year growth:
   • Over the years, the chain has registered impressive growth in its revenue, and during COVID, where the margins were under pressure, it made a comeback with a post-COVID profit after tax of ₹19.1 crore.
     • Apart from their growth in terms of revenue, Barbeque Nation has also expanded its footprints to other territories in India, totaling their store count to 216.

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How much would you require to open a Barbeque Nation franchise?

The overall investment for opening a Barbeque Nation restaurant in your city is heavily dependent on the growth prospects of the franchise.

Usually, these gigantic franchises perform the market survey on a prior basis and may guide their franchise aspirants with suitable locations for opening their branches.

The average cost of owning a Barbeque Nation restaurant will range between ₹1 crore and ₹2 crore, which includes the franchise fee of ₹25 lakh. If compared with its competitors like Bikanerwala or Haldirams, the investment seems quite reasonable.

Royalty fee and other expenses

Beside this capital, you’ll be liable to pay a royalty fee of 8%, which is basically calculated on monthly gross sales. Other expenses for the BBQ franchise will include investment in store interior decor, furniture, branding, equipment procurement, and more.

You can gain more details on your investment from the respective team once you qualify for its franchise.

Here are a few more details on Barbeque Nation franchise requirements:

Area requirements

For opening a BBQ restaurant, you’ll need to finalize a proper retail space of at least 2,500 square feet to 4,000 square feet in a high-traffic area. Their outlets are particularly located on the ground floor or the second floor (if the ambience is great and available in a jampacked market).

In the fiscal year 2022–23, BBQ has inaugurated 39 restaurants across the country, and they are continuously seeking aspiring partners to expand their footprints in other untapped territories.

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How much profit does the Barbeque Nation franchise make?

The net profit margin for the entire food industry is subjective to location and the brand value it carries. To be specific, during COVID, almost every business was affected, and BBQ wasn’t any exception to this.

From a profitability point of view, BBQ Nation has shown resilient growth in fiscal 2022–23, both in terms of net margin and outlet expansion. In the same year, Barbeque Nation posted its lifetime high revenue figure of ₹1,233.8 crore, with a profit after tax of ₹19.2 crore.

If we compare these numbers with 216 outlets, it results in average restaurant sales of ₹5.71 crore and a profit margin of 1.57%. However, we need to understand that in the same year, they launched 39 outlets, and to see their margin in the annual report, you may need to wait for at least 2–3 quarters.

Another key observation from its annual report is that around 1/4th of the total BBQ franchise revenue came from Toscano, international, and delivery businesses. So, overall, they are diversifying their revenue stream, and as a franchise partner, you may expect a decent profit of at least ₹3 lakh to ₹5 lakh monthly (this isn’t a verified number; do check with the franchise to get the exact info).

Two best alternatives to Barbeque Nation restaurant franchise

The options in the food franchise are ultimate, and given the fact that they are rising enormously and more eating-out habits are increasing in India, this has created more chances for entrepreneurs to succeed in their journey.

Definitely, there can be multiple options, but here are my two favorite picks:

Bikanervala/Haldiram franchise

Both are different franchises operating in the same sector. The key advantages of these franchises are that they have already cemented their position in the market and have a larger customer base as compared to other food businesses in India.

The initial capital for Haldirams and Bikanervala will eventually range between ₹1 crore and ₹5 crore. For more details, feel free to check out these articles:

Haldirams franchise – How to Get a Haldirams Franchise – Cost, Fee, & Profit

Bikanervala franchise – Should you Go for Bikanervala Franchise? Cost & Profit

How do you apply for the Barbeque Nation franchise in India?

To get this franchise, you only need to visit its official website and navigate to the partnership section. The recommended page has an application form, and it certainly requires all the necessary details to be filled out.

For example, you’ll need to fill in store details, including its locations, dimensions, locality, photos, and more. After filling out the form, you may need to wait at least 7–14 days for their reply, or you may receive their response early if everything matches their requirements.

For our internal purposes, you can also fill out this form:

The Final Thought

Barbeque Nation certainly holds a premium market share in the Indian food industry, and the majority of their restaurants are located in Tier 1 and Tier 2 cities.

The chain is continuously seeking valuable partners from other territories, but it is also true that nearly half of their total locations are owned and managed by the company itself. This unquestionably showcases their faith in the brand.

If you are willing to serve the same BBQ experience in your neighborhood and have the necessary capital and retail space to open their outlet, then you are eventually a step away from becoming their partner.

If you are looking for other options in the franchise world, then here are a few top-ranking categories for you.

Tea & Café Franchise, Ice Cream Franchise, Food & Beverages, Delivery, Dealership/Distributorship, 

Affordable Franchises, International Franchises, Business Ideas, and Apparel Franchise

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