About Grill Splendour Services Limited

A chain of gourmet Bakery and Patisserie spread across Mumbai through 17 retail stores (5 franchisee owned and 12 are company operated), a centralized production facility and multiple corporate clients. The company offers fresh food products from traditional to ‘made to order’ as required by the Customers.

Incorporated in Nov’19 as a hospitality company to acquire the bakery and confectionary business along with brand Birdy’s Bakery and Patisserie from WAH Restaurants Private Limited. The company is engaged in the sale of Cakes & Pastries, Food Sale, Beverages, Desert Sales.

As a marketing strategy, the Company has reached out and acquired B2B clients viz. Barista, Trent House Bandra, Café Coffee Day, IBIS Hotels, Compass India, Wagh Bakri and MARS restaurants etc. to supply them various food products. As per Nov’23 this B2B segment holds approximately 37% of the revenue and rest 63% is held by B2C model.

The company is in the process of acquiring the brand rights for popular brands. It includes:

• Pizzeria
• Roti
• China Joe
• Just Around the Corner
• Not Just Jazz by The Bay

These brands have had a proven track record and enjoy good brand recall. They have a format of being medium sized and easy to scale.

India’s food service sector is one of the vibrantly growing segments, which has witnessed noticeable growth in past few years. The sector, including both organized and unorganized segments, stands at Rs. 4,23,865 crores in 2018-19. The sector is expected to reach US$ 79.65 billion by 2028, with a CAGR of 11.19%.

The country's restaurant and food service market are split into two segments, with the unorganized segment holding the lion's share of the market, & organized sector expanded rapidly between 2014 and 2020.

Quick service restaurant (QSR) is a restaurant which offers certain food items that require minimal preparation time and are delivered through quick services. Typically, quick service restaurants or QSRs cater to fast food items over a limited menu as they can be cooked in less time with the minimum possible variation. The market for which is predicted to be worth US$ 690.21 million in 2022 and US$ 1069.3 million in 2027, rising at a CAGR of 9.15%. according to the report's additional findings. The QSR chain market is anticipated to increase at a CAGR of 23% over the course of FY20–25, making it the fastest-growing sub-segment overall in the food service industry.

Deserts & Ice creams market is projected to grow at CAGR of 19% by 2022-23. The organized D&IC market in India was worth around Rs. 4,121 crores in 2018-19. The standalone format makes up 53% Rs. 2,188 crore and the chain store format contributed 47% Rs. 1,933 crores.

Risk associated to the business

No long-term with customers: The company generate retail sales by continuing relationships with customers as well as walk-in customers and no long- term contract with customers.

Deterioration in the performance of third-party delivery aggregators: The growth of online ordering and mobile applications, along with increasing number and growth of third-party delivery aggregators, have made delivery an important part of business, any fall in the performance quality of the delivery partner may hamper the growth of the company.

B2B operations are subject to high working capital: B2B business requires significant amount of working capital and major portion of working capital is utilized towards debtors and inventories.

Limited number of vendors: Top 10 vendors of the company subsequently hold approx. 50% of the purchases.

High Competition and Negative Publicity: Company compete on brand name recognition and reputation, customer satisfaction, quality of service etc. Some of the competitors are larger in terms of size of operations, having greater financial and marketing resources this gives an edge to them making better presence. Business is dependent on the trust our customers have in the quality of food and services of employees who serve them. Any negative publicity regarding quality of food or services, can affect the uptrend of the company.

Season Business: Revenue is subject to seasonal variations receiving higher revenues during September to December quarter due to festival seasons.

Limited to Geographic location: The company operates 100% in Mumbai, Maharashtra.