United Foodbrands targets 450 restaurants as new stores reach positive margin

United Foodbrands plans to expand from 274 restaurants in Q2 FY27 to 425-450 by FY30, while targeting more than 300 restaurants by FY27. The expansion plan is accompanied by improved unit economics: new restaurants reported a 7.4% pre-IND AS restaurant operating margin in Q2 FY27, compared with a 2.1% negative margin a year earlier.

How fast does United Foodbrands plan to expand its restaurant network?

United Foodbrands plans to operate 425-450 restaurants by FY30, compared with 274 restaurants at the end of Q2 FY27. The company opened 14 restaurants year to date in FY27, including nine openings in Q2 FY27, and stated that it was on track to reach more than 300 restaurants by FY27.

The planned expansion follows a faster recent build-out after a more gradual period. The restaurant count rose from 185 in FY22 to 216 in FY23, then increased by one to 217 in FY24 and to 230 in FY25 before reaching 262 in FY26. The network was 274 restaurants in Q2 FY27, a net increase of 12 from FY26.

United Foodbrands had 19 restaurants under construction at the end of Q2 FY27, which it said would become operational in Q3 or Q4 FY27. These sites, if opened on the disclosed timetable, would add to the 274-restaurant base and form the next test of the company's more-than-300-restaurants target for FY27.

What are United Foodbrands' new restaurant economics?

United Foodbrands' new restaurants generated annualised revenue of Rs 5.6 crore per restaurant and a 7.4% pre-IND AS restaurant operating margin in Q2 FY27. The margin changed from a 2.1% negative margin in Q2 FY26, while annualised revenue per new restaurant increased from Rs 4.2 crore.

The company calculates these revenue figures by annualising quarterly revenue and defines matured restaurants as sites operating for more than two years. New restaurants remained below matured sites in Q2 FY27, with annualised revenue of Rs 5.6 crore versus Rs 6.8 crore and operating margins of 7.4% versus 14.7%.

For H1 FY27, new restaurants recorded annualised revenue of Rs 4.9 crore and a 6.9% operating margin, compared with Rs 3.8 crore and a 0.3% negative margin in H1 FY26. United Foodbrands said the improved new-store margin profile was accelerating payback; the disclosed half-year figures show a move to a positive margin.

How did United Foodbrands' wider restaurant portfolio perform in Q2 FY27?

United Foodbrands reported Q2 FY27 operating revenue of Rs 429.3 crore, up 40.9% year on year, and pre-IND AS restaurant operating profit of Rs 57.4 crore, up 129.6%. Restaurant operating margin, or ROM, rose to 13.4% from 8.2% in Q2 FY26, an increase of about 520 basis points.

Same-store sales growth, or SSSG, was 24.5% in Q2 FY27 after a 2.2% decline in Q2 FY26. Annualised revenue per outlet increased to Rs 6.5 crore from Rs 5.4 crore in the year-earlier quarter, although it was below the Rs 6.6 crore reported in Q1 FY27.

Gross profit increased 39.3% year on year to Rs 281.2 crore in Q2 FY27, while gross margin declined to 65.5% from 66.2% in Q2 FY26. Restaurant operating profit therefore rose faster than gross profit, while gross margin was 70 basis points lower year on year.

For H1 FY27, revenue from operations reached Rs 855.2 crore, up 42.1% from Rs 601.7 crore in H1 FY26. Pre-IND AS restaurant operating profit increased to Rs 119.5 crore from Rs 59.2 crore, lifting H1 ROM to 14.0% from 9.8%.

Which channels and segments are supporting United Foodbrands' expansion?

United Foodbrands' dine-in revenue was Rs 360.4 crore in Q2 FY27, up 39.8% year on year, while delivery revenue was Rs 68.1 crore, up 47.4%. Dine-in accounted for 84.1% of business and delivery represented 15.9%, compared with 84.4% and 15.6%, respectively, in Q2 FY26.

Dine-in volume grew 56.2% year on year in Q2 FY27, which United Foodbrands identified as the driver of dine-in revenue growth. In H1 FY27, dine-in revenue was Rs 714.7 crore and delivery revenue was Rs 139.8 crore, compared with Rs 509.1 crore and Rs 90.5 crore, respectively, in H1 FY26.

Across segments, Barbeque Nation India delivered 27.8% SSSG and 41.4% operating-revenue growth in Q2 FY27. International operations recorded 26.5% SSSG and 59.0% revenue growth, while Premium CDR recorded 7.8% SSSG and 28.5% revenue growth; all three segments contributed to consolidated revenue growth of 40.9%.

The Q2 FY27 network comprised 216 Barbeque Nation India restaurants, 16 Barbeque Nation International restaurants and 42 Premium CDR restaurants. Four named Q2 FY27 launches were Aurum Mall in Mumbai, Zirakpur in Punjab, Al Ghurair in Dubai and Hyatt Regency in Bangkok, all under the Barbeque Nation brand.

Conclusion

United Foodbrands is pursuing a larger restaurant network alongside improved new-store unit economics. New restaurants moved from a 2.1% negative operating margin in Q2 FY26 to a 7.4% margin in Q2 FY27, while matured restaurants reported a 14.7% margin and the consolidated network reached 274 sites.

The next disclosed milestone is the opening of 19 restaurants under construction, which United Foodbrands expects to become operational in Q3 or Q4 FY27. Their delivery, together with the stated target of more than 300 restaurants by FY27, will show whether the company can sustain the pace required to reach 425-450 restaurants by FY30.