Speciality Restaurants bets big on AI, aims at Rs 1,000 cr revenue in 5 years

In a move to strengthen its position as a leading player in the Asian food space, Speciality Restaurants Ltd is looking to clock a revenue of Rs 1,000 crore with technology intervention and brand refresh, a company official said on Monday.

The multi-brand restaurant chain's standalone net profit in the first half of (April-September) FY'23 stood at Rs 27.67 crore from a turnover of Rs 195 crore, recovering from Covid pandemic headwinds.

"We aim at reaching Rs 1,000 crore revenue in the next five years. Our stated goal is to double our current revenue in four years and triple it in six years, starting from the current level of Rs 400 crore," Speciality Restaurants CMD Anjan Chatterjee told PTI.

The Kolkata-headquartered company's key focus will be on "leveraging its key brands and upgrading technology, including the use of AI, to enhance customer experience and drive revenue growth by maintaining EBIDTA of over 25 per cent", he said.

Explaining the strategy, Chatterjee said the company's first step towards this goal is to refresh its flagship brand Mainland China, which will include a new look and menu offering.

"The aim is to increase same-store sales growth (SSSG) and convert Mainland China Mall outlets into Asia Kitchen with the brand refresh," he said.

The company also plans to ramp up delivery through cloud kitchens and 'kitchen within kitchen' set-up, as well as leverage its brand equity to migrate into FMCG ready-to-eat formats, he said.

Moreover, Speciality Restaurants will launch a QSR (Quick Service Restaurant) brand and plans to set up two-three outlets in each metro city and one or two in Tier II cities.

The company stated that its wet-led venture, Episode One, which is a perfect mix of GenX and GenY, will also be expanded with the set-up of 2-3 outlets in each metro city and 1-2 in Tier II cities.

The company's international presence will also be expanded with the launch of Asia Kitchen by Mainland China in key cities globally, he said. The brand has already performed "very well" with two outlets in Dubai and one restaurant in London, Chatterjee said.

Speciality Restaurants was "working with technology partners to increase product shelf life, and expanding its airport and corporate gifting offerings", he added.