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Barbeque-Nation Hospitality Ltd
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Ladies and gentlemen, good day and welcome to the Barbeque Nation Q1 FY 2024 Earnings Conference Call hosted by Ambit Capital. [Operator Instructions]. Please note this conference is being recorded. I now hand the conference over to Mr. Amar Kedia. Thank you and over to you sir.
Thanks Aman. Good evening everyone. Welcome to the Q1 FY 2024 earnings con call of Barbeque Nation Hospitality Limited. From the management, we have with us Mr. Kayum Dhanani; Managing Director, Mr. Rahul Agrawal; CEO and Whole-Time Director; Mr. Amit Betala; CFO; and Mr. Bijay Sharma; Head of Investor Relations. Before we begin the presentation, I would like to remind you that some of the statements made into this conference call by the company may be forward-looking in nature and may involve risks and uncertainties. Kindly refer to the earnings presentation for a detailed disclaimer. I now hand the conference over to Mr. Kayum Dhanani, Thank you, and over to you, sir.
Thank you. Very good evening, ladies and gentlemen. I take the pleasure in welcoming you to quarter 1 FY '24 conference call of Barbeque Nation. During the quarter, we recorded a revenue of INR 324 crores, which is an increase of 15.6% on a quarter-on-quarter basis and 2.9% on a year-on-year basis. This is an encouraging performance considering the prevailing subdued demand scenario and higher base impact in the first quarter last year. Both our dine-in and delivery business recorded very strong sequential growth, primarily driven by volume growth of over 20% across both segments. This growth was offset to some extent due to lower average realization in the dining business because of various offers and promotions across select markets. Our key focus during the quarter was to drive volume growth, which we have been able to achieve successfully. We undertook various initiatives during the quarter to enhance guest experience through upgraded restaurant designs, elevating culinary experience and further strengthening service culture. We remain committed to drive cover growth, and we'll continue to invest with the objective to enhance our guest satisfaction.During the quarter, we opened 4 new restaurants, which included 2 restaurants in Barbeque Nation, India, one in Toscano and 1 in international markets. We closed 8 restaurants during this period, resulting into net worth of 212 restaurants. Our medium- to long-term growth remains intact, and we are pursuing a clearly defined strategy. Our focus will be on driving SSSG and profitability for the India dine-in business, scaling emerging verticals such as Toscano and International and drive penetration for UBQ and Dum Safar.In addition, we will also look at expanding our brand portfolio, including inorganic growth. With this, now I hand over to Rahul to take you through the performance during the quarter and thank you very much. Over to you, Rahul.
Thank you, Kayum. Good evening, everyone. Our revenues for the quarter were INR 324 crores, an increase of 15.6% sequentially and 2.9% on a year-on-year basis. Our dine-in revenues for the quarter increased 13.5% sequentially and 1.3% on a year-on-year basis to INR 276 crores. Our delivery revenues recorded a strong sequential and year-on-year growth of 21% and 12.6%, respectively, to reach INR 47.3 crores. Both dine-in delivery growth were primarily led by 20% volume growth on a sequential basis. The delivery sales accounted for 14.6% of the total revenue during the quarter, which is the highest level over last 7 quarters. Same-store sales growth for the quarter was negative 7.7% compared to last year compared to quarter 4 FY '23. We recorded a same-store sales growth of over 13%, which is primarily led by around 20% volume growth and offset to the team of around 5% on account of lower banking price realization during the during the current quarter.Consolidated gross margin for the quarter declined by around 180 basis points sequentially and 280 basis points on a year-on-year basis. While the cost inflation remained under control, the decline was primarily attributed to lower banking price realization of around 5% compared to quarter 4 on account of various offers and promotions that were taken during this period. The gross margin trend is improving on a month-to-month basis and have recovered to historical levels in July 2023. Consolidated reported EBITDA for the period was INR 47.6 crores, which is an increase of 13% compared to quarter 4 FY '23 and a decline of 35% compared to same period last year. Our pre-Ind AS adjusted EBITDA for the period was INR 18.8 crores with a margin of 5.8%. Pre-Ind AS EBITDA margin only marginally improved on a sequential basis as the benefits of operating leverage were some sequential sales growth were offset by lower gross margin.Our restaurant network was -- stood at around 212 restaurants. This included 190 Barbeque Nation restaurants, 7 international Barbeque Nation restaurants and 15 restaurants at Toscano. During the period, we added 4 new restaurants, which would be 1 at Toscano and one Barbeque Nation International. We also closed 8 restaurants in the period, which we believe had poor future economics. We also delivered strong quarter-on-quarter performance on revenue per outlet.Matured restaurant portfolio delivered an annualized revenue per outlet of INR 6.5 crores during the quarter, thereby growing 14% sequentially and declined by around 7% on a year-on-year basis. The matured portfolio delivered a restaurant operating margin of 14.3%, which was relatively flat on a sequential basis despite the decline in gross margin.New restaurant portfolio is growing well. New restaurant portfolio reported an annualized revenue per outlet of INR 5.2 crores, which is an increase of 23% sequentially and 27% on a year-on-year basis. The restaurant operating margin was 4.3% on this compared to a loss of 1.2% in quarter 4 FY '23 and profit of 6.2% in quarter 1 FY 23. Our final focus during the quarter was to drive volume growth, and all our restaurants have yielded very driven results. We are positive about continuing this trend and gradual improvement in our margins going forward. We are focused to maintain our market leadership position in CDR segment in India. Our focus area for medium term would be four-pronged strategy across Barbeque Nation India dine-in business, scaling emerging verticals, growing delivery and preferred diversification. In our Barbeque Nation India dine-in business, our focus will be to drive same-store sales growth and profitability coupled with cost optimization. We'll continue to invest in enhancing guest experience to driving innovations as well as upgrading our restaurants. In our emerging business portfolio, our focus will be expansion led growth for Toscano, coupled with maintaining our current SSSG and profitability. Similarly, for Barbeque Nation international business, we'll focus on calibrated expansion and maintain a SSSG and profitability for the existing assets. Both for delivery vertical, we'll be focused on driving volume growth for UBQ, coupled with increased penetration of our Biryani Brand ‘Dum Safar'. We also continue to evaluate the opportunity of brand portfolio expansion, both under organic and inorganic space so that we further capitalize on our existing organizational strength and understanding of our guests. With this, we can open the session for Q&A. Thank you.
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Kapil Jagasia from Nuvama Wealth Research.
My first question is all food operators, including you are very optimistic on demand revival around Q3. Now since the festival season is just 2 months away, have you seen demand reviving in smaller towns or inflation marketing to a larger extent for your business? Just wanted to get a sense on how confident you are about business performance in the second half of the year.
It looks very encouraging. If you look at our past 5 months data also, I think we reached our lowest point in the month of February, this calendar year. And post that February till around June, we have seen a sequential month-on-month improvement, both in terms of top line and also in margins. Going forward, I think in our business, quarter 2 generally is a lower quarter given a lot of a bit rainy days. So shower months have already started. And this time around dispute is longer around 4.5 months. So to that extent, we saw some dip in July. But otherwise, on a like-to-like basis, even for summer days last year down days this year, the growth continues. With this momentum, I think I'm also on the same bucket, which we believe that second half of the year should be really strong. Also given the fact that the base impact we also take in because last year second half has not performed that well.
Okay. That helps. My second question is Dana volumes grew 20% sequentially. So what has been a trend of volume growth earlier between Q1 and Q4 in you have limited the pre-COVID times were really healthier.
Sorry, you mean historical growth between Q4 and Q1 in the cycle period?
Yes.
So pre-COVID, I think typically, the business growth is around 8%. Out of that 5% is typically volume growth and 3% is price hike. Historically, predominant took price hike in 2 figures. One is the beginning of the year and one is around the beginning of the second half. So total revenue growth was around 8%, which this time around is around 16% on a sequential basis.
Okay. And one final question would be on Dum Safar. There was no mention about this in your presentation. So just looking at the smart pickup delivery volumes, how much revenue has Dum Safar super reached? And what would have been the ADS?
So Dum Safar is now, it has crossed 80% of our outlet. We are -- I think we've done approximately INR 6.5 crores, INR 7 crores in the previous -- INR 6.5 crores in the previous quarter on that. And on a month-on-month increase on ADS in Dum Safar, on the average, it could be around INR 5,000 ADS per day.
So I guess, earlier, we were at 7,000, right? So has that gone down?
No. So that 7000 was only for stores that we started in the first phase. So the first phase INR 7,000 is approximately 11,000 right now. So this has expanded -- the reached to 80% of our outlets over a period of 4 quarters, right? So the first phase includes restaurants that were opened up in August last year, August and September last year.
[Operator Instructions] Next question is from the line of Harit Kapoor from Investec.
My first question is on the margins in the matured stores. So you've gone from 19% to about 14-odd percent. If you look at Q2 to Q1, Q2 '23, to Q1, '24, while sales revenue per outlet is broadly the similar trajectory, INR 6.7 crores and INR 6.5 crores. So would you attribute this 500 bps only to increased promotions which you've done quarter-on-quarter?
So largely that around 2.5% of that would also come from gross margin, which is largely the impact of the lower price realization -- and the balance, 2% would be -- the revenues are lower by around 3%, so maybe 1.5% will come from that. But overall, this portfolio is also recovering well along. So if you look at versus quarter 4 versus now, so ideally with the increase in revenues, some bit of this should flow to their margins, but we lost because of only lower price utilization.
And by when do you think you'll be comfortable with the footfall number and you can kind of phase out the promotional promotions?
So look, this is already a phased out. So we did this aggressively in April. We also spoke about this in our last call. And then from July onwards, there has been phased out. And in fact, if you look at our gross margin numbers in July, it has diverted back to around 6%, 6.5% that used to do historically.
Got it. Second question was on the closures. So you've done 8 closures. Can you give us a fair of what that number could look like in the near term given what visibility you have? And also, the benefit of disclosures on the margin, do you start to see it from Q2, especially on the rate closures, as I'm assuming it's been done through the quarter, sir?
Yes. So it's been done through the quarters, but typically, there's some notices also additional expenditures if you close. So I think Q3 onwards it will definitely start flowing. So did you ask in terms of other closures going forward?
Yes, also that. That's the other question.
Yes. So as of now, I think maybe 5-odd restaurants would be under very close watch. I think out of this 2 or 3 will finish close in this quarter. And on the other 2, we'll take a call in quarter 3, if required. Other than this portfolio, I think largely, I wouldn't see that this needs to be revaluated. And I think we'll be done with our portfolio reconciliation.
The next question is from the line of Manish Poddar from Motilal Oswal.
So just a continuation to the other one. So can you call up, let's say, these 8 restaurants, which you have closed. Now what was generally the vintage of that? And how much is the actual EBITDA loss there? And why did you close it actually? So why take the decision now? Because I thought during COVID you've done a lot of downscaling already. So what has really changed? So 3 parts. One is the absolute EBITDA loss, why close now and vintage. That's the third part.
Right. So let me first few data point numbers. Absolute EBITDA loss for the quarter on this would be approximately INR 1.2 crores. These are at store level. And vintage-wise, these are all part of mature buckets. This is not new bucket. Barring One, which is a new bucket. And in terms of tiers, 4 of them are in Tier 1 – Tier 2 markets and 4 of them are in metro tier markets. In sum, there is also -- they have lived through the entire life of 12 years and rents have gone up to a perpetual level, which has not been supported and our discussions on rental litigation well. And in this out of this, 2 of them will revisit and go back to the same trade area because you're talking to a site which is close by, but did want to take losses in the current scenario. Why now, look, all of these are at the -- and also, sir, just to clarify, on during COVID times on the entire portfolio of close to 1 from 60-odd restaurants, there are only closed 3 restaurants, right? And those -- out of those 3, 2 were in Bombay and one in Delhi and those were profit-making restaurant, but we closed them because our rental discussions on didn't sort of go well. In the current one, I think with the expansion that we have done, some of the demands would also shifted to the other places. And when we reevaluated all of these is, we thought at least in the metro market or the market, these 4 were not making any sense.
So if I would just look at this mature restaurants basket, excluding this, let's say 8, what is the margin there?
Maybe 5% improvement in the overall basis. So 14.3% or 15%.
Okay. And so if I -- and if I look at the scheme of the promotions page in the deck, so do you think by -- because effectively, and I'm not sure if this is pan-India, there are schemes on -- for every day from Monday to Thursday in terms of lunch. So are -- is there a scheme or there is discounted price. Is this in the regular course of business, this was the case earlier also or the scheme intensities, because once you roll it out to roll it back with corporate customers, let's say, if they're on for this lunch means, it is a difficult task right? So I'm just trying to think to it, is this a regular course of business? Or when was the similar thing witnessed by you all per year?
So I wanted to clarify, this is not just lunch. This is both lunch and dinner. And typically, this is not corporate customer because corporate customers largely come on second half of the week, which is Wednesday and normally Friday. This is more of Monday, Tuesday, which are the linear day in our business, and we try to drive some value-seeking customer who can't afford [Indiscernible] on a weekend pricing, right? So we always had a differential pricing. But on these days, and it's selective right in some ways, it's 599 in some days, it's 699 also in key markets, mid-to markets. So it's by outlet based on what is the term which you got the outlet does. And this was a limited time offer, which has given us very positive results. So if you look at our current pricing basket, this price has gone up by approximately INR 150 across all markets now.
And this is Monday discussed right? More on Monday Tuesday and I see two offers. Monday to Tuesday, and Tuesday to Thursday.
Look, this is not pan-India. So this is -- there are different offers in different markets. So in some markets, it's only happy Monday Tuesdays, some markets only terrific Thursdays, and some markets, it may be mid-week offer, which could be Monday to Thursday, sorry Tuesday to Thursday. So it is not one offer for pan-India. It all -- it's based on what is the table turn, what is the capacity utilization which day part is not working for us, and that's the way they've done it. And the promotions are largely digital targeted promotions.
Sorry, just to start, when was this last done by you all? And do I think this sort of promotion intensity, when was it last done? And does it -- do your customers retrace back to the full pricing? Is there a difficult task - just to touch on that?
So look, last quarter, obviously, we were looking at low demand scenario, right? And if you look at other businesses also, people are down trading lower average utilizations. Unfortunately, in our business, we only have one segment which is all you can eat, right? So if the price point is x, I don't have an option for customers to go and say that now you only take these 4 items and pay less than that, right? So the purpose of this campaign was to ensure that how do you -- how do you capture some of the value-conscious market customers and somebody who's been hit by the end demand scenario. So we only did it with that perspective. So this was not on a weekend, weekends are pretty good. And if I look at the growth numbers, versus quarter 4, the 20% volume sequential growth that I am talking about. If I look at our weekday sales, which is Monday to Thursday, the growth number is around 28%. Our weekend volume growth is around 12% to 15%. So what also happens is that this gets a talking point is also -- it's something that makes to recall. And we'll also get a retrospect on other dayparts also.
[Operator Instructions] The next question is from the line of Shudh from Emerge Capital.
Can you please give the split of number of matured stores versus new stores and the operating margins with Ind AS?
A number of outlets. So quarter 1 would have around 152 or so and the balance would be new stores. And operating margin with Ind AS I don't have a… Bijay, can you give the exact numbers? Okay. So, I'll get it sent to you. But typically, I think there is additional 8% which sort of comes through from that.
The next question is from the line of Sakshi Chhabra from SoftBank Investment.
So I had 2 questions. My first question was that what is -- what is the driving pattern behind this increase in the delivery volumes and sales...
So no doubt we have been talking about it a lot of things about our product delivery or our packaging delivery. And those things have been started to play out sequentially since February. We've also kept our mix sales, which is A-la-carte and on boxes. And whatever deterioration that we have seen in the previous quarters in our delivery revenue numbers, but on account of decline in average order value. And our average order value has been pretty stable for now 5, 6 quarters. And whatever of the increase that we're seeing is on the volume front.
Okay. So what was the average on the [ Indiscernible ] on the delivery front?
Approximately INR 500. This is Net to us. This is after GST after discount.
Okay. And how do you see this panning out going forward as you see this sort of growth sustainable on a delivery-side?
Yes. We hope so, at least over the last 7 quarters, this is one of the best. I think this growth number is also continuing in the existing in the current quarter also. So it should do well.
Okay. And sir, I wanted to understand on your matured stores. So if we even see the ADS, which is in Q1 versus Q2 of last year, which was like to Q2 is usually the weakest quarter for you. So when compared to that, the ADS has been lower in this quarter. So what is one of our strategy going forward to implement this?
So yes, look, over the last 5 quarters, what has happened is we have added more capacity. And generally, there's some demand pressures on the customer spend, right? So with the mix of that, if you look at the trend quarter-on-quarter was in terms of last year, we have come down from almost INR 7 crores to INR 5.7 crores in quarter 4, right? The task was, how do you get more people inside. So -- and I think you called this out last quarter also that our focus is volume growth and we have achieved that as compared to what we probably did in quarter 4. They have done better than what normally it can between quarter 4 and quarter 1. So our focus first was to see what changes you can make on your existing operations, be it in terms of company [Indiscernible], base in terms of upgradations while that is continuous work. But by and large, a lot of work has gone into back in quarter 3 and quarter 4 last year. The second step was how do you get your volumes and revenues back. I think we have got our volumes on an upward trend and revenues also are reflecting accordingly. And the third step is our margins, which is what we are working on both as a factor of improvement in terms of our gross margin and also some cost optimization, right? This will obviously take maybe 1 or 2 more quarters we've taken a hard look at our portfolio. But what I can say now is that have we reached the bottom in the previous quarter, I believe so. Based on what other industries are talking about some improvement and sequential growth, I think that should also start reflecting in our numbers.
Okay. And what -- so what is the kind of UBG growth that you would be targeting in the coming few years?
So long term, we target 5% to 7%, right? And if I look at last 10 year history, we've delivered that. Quarter 1 obviously started with a negative number. So something has to be done. So in today's sort of in today, it's really different to give you a number, but I think it should be better than what we have done in quarter 1 based on what we are seeing in our business. So maybe one more quarter and then it is for me to give you an estimation.
Okay. But with the current sentiment and Q2 you will have to keep giving further promotions and offers so your volume growth is gaining, but on the pricing side for another sometime you'll keep doing these sort of promotional offers so that you can drive the referrals?
No. Look, it's very tactical, right? So like I said, the pricing is back, the gross mines are back in the month of July itself, right? So you keep running from some of these tactical offers, promotional offers to get the customer back and when they convert into repeat customer and then they see the amount of work that has happened bio asset building in terms of food. I mean the reputed numbers will come in. And the better reflection also is our internal guest satisfaction scores, right? We track it very closely. And in the current year, while last year also was very good in the current year, we have been higher than last year, right? And if you look at the sub part of our feedback score, our food feedback score is even higher. Our service feedback score is flattish and our asset tenders are also higher. So those things give me comfort that -- and we've also seen the improvement in quarter 1 versus the last quarter, right? So hopefully, it should continue based on the daily feedback that it's getting to my guess.
The next question is from the line of Faisal Zuber Hawa from H.G. Hawa Company. It seems there's no response from the current participant. And we'll move to our next question. That is from the line of Sanjeev Goswami from Fractal Capital Investment.
So I have a couple of questions around the store expansion. From what I added gross new stores and net of minus of the closed 4 stores. If I look at the last 3 years, most of the additions that you had done, they have been happening metro tier I cities, 59 restaurants in metro tier ! cities with only 4 in Tier 2 Tier 3 cities. Now I have 2 questions. One, can you talk about your addition of 20 new stores this year in this financial year. Is it on a gross level or net level? And second, what kind of cities it will happen?
This number is on gross level, not a net level right now. And in terms of city expansion, I think let's look at 3 parts. One is Barbeque Nation brand, both India, international separately and Toscano. Our international business and Toscano business are on a different trajectory, both in terms of profitability and SSSG. So there we'll expand. Toscano, we have already opened one more already in this quarter. And we have under discussion pipeline of around 4, 5 restaurants, right? So maybe 2 or 3 more will come from that. So overall 5 will come from that. International, again, we have one more which will come up in this quarter and then maybe one more in quarter 4. So we'll have 3 coming on that. And 12 will come from Barbeque Nation in India on a gross basis.
Okay. Now, if you look at the prospective of 90 stores, which opened before the COVID basically and what the new format that you have. What is the CapEx per store and what is the change in terms of CapEx per store and also staffing per restaurant.
Sorry, CapEx? And what is the second part, sir?'
Staffing per restaurant?
Number of staff. Okay. So in terms of CapEx, it has slightly gone up. We are currently around INR 3.1 crores per outlet and staffing depends on size of the restaurant. So typically around 4 feet square feet area would have around 40-odd staff in the restaurants. And this includes both front of the house, back of the house housekeeping earlier.
Okay. And how did this compare with pre-Covid scenario?
So it's pretty similar. I think between pre-COVID and now we have kept the same, but the only efficiency has come from the fact that we have also not added incremental staff despite the fact that we have added delivery business, which is around 15% of our revenues.
If I can have just one more question, actually, on the commissaries part, I understand that we have 2 commissaries, right? One is in Delhi and one is in Mumbai, Bombay? So how many minimum outlets do you need to start the commissaries in the region? And what are the CapEx for one commissary?
So the commissary is not the model that we are pursuing anymore. These were historical commissaries and when they are based some of the restaurants that they have built, they're not designed to have large kitchen areas, right? So we're continuing with those commissaries. But as you know, we currently operate in over 80 cities and most of our operations have moved towards various standardized products wherein we rely on way to cook products and a lot of vendor-driven standardized items that we procure from them. So commissaries is no longer an integral part of our strategy. So for example, Bangalore, we have around 18 outlets of Barbeque Nation and we don't operate it from this year.
Okay. So potential outlook is that you would be closing on the commissaries.
We can look at optimizing. I think closures would be difficult. As I said, some of the outlets this support don't have that large kitchen right now. Okay. It is the design that matters.
[Operator Instructions] The next question is from the line of Vaibhav from BnB Investments.
Yes. As you mentioned in the last quarter that this quarter how are you improving SSSG. So in that still this portal is negative. And so this is -- the reason for this is the Indian consumption market or anything else? Is the demand in the program or anything else?
Okay, demand was the problem. And like I said last quarter, we focused on SSSG. If you compare it versus quarter 1, on a high base, it looks -- it is low. But if you compare it against a trend versus last quarter, it has started to trend up. And we believe that as demand recovery also happens, which at least we're optimistic that it should happen in second half of the year, it should move towards positive trajectory also.
And you feel that you told that the CapEx will be INR 3.1 crores. So considering that what will be the depreciation per year from now onwards per outlet?
So typically, on an overall number, we have around INR 37 crores, which also includes entries related to IndAS 116. Without that, the number is around INR 18-odd crores, which would be -- so this was a quarter. So, this would be around INR 3 lakh to INR 4 lakh per outlet per month. Yes. So around INR 14 lakhs per outlet per year.
The next question is from the line of Khush Gosrani from InCred Asset Management.
Sir, could you help us to understand the store mix between North, South, East and West?
So it's pretty similar across all. If you look at 192 Barbeque Nation restaurants, it is only divided across all trajectories. So when you look at East, we also look at integrated band in that, but without that, if you look at core is, which is which is Bihar, Jhark and Northeast and West Bengal, this would have around 35 outlets.
Sure. And sir, if I just look at the -- I think so the per store revenue outlets that are matured and new stores, I think, so the revenue part is improving very constantly. It is where the EBITDA margins were the profitability that we are into focus. So what are the steps that you are taking as of now to recur to the profitability that we have done?
So a couple of percentage points will stay away come from gross margin expansion, which we are seeing already. And the balance will come from of some increase in revenues in these and operating leverage. While some cost optimization work has also been undertaken that should give us another 50 basis points expansion there.
Sure. And lastly, since you're curtailing on these promotion expenses, you are still seeing the volume remaining at the levels or it is declining as well as the August month is rolling?
No. So volumes are better, but if you look at quarter 2 last quarter versus quarter of this year, there are different in dates with respect to shower impacts. So some last year started earlier and some started later this year. So this has started earlier than last year. So the barring those impacts, the volumes are holding up. And showers does impact us in strongly in markets like North UP and also West?
Sure. And for the overall, when can you -- when are you internally planning to reach the EBITDA margins that we were doing pre-COVID or at least at the peak that we have done?
So it's improving on a quarter-on-quarter basis. So it's difficult for me to call out, it also depends on a lot of factors. But I think my estimate is from quarter 3 onwards, you should start seeing a very good positive impact on the numbers. Yes it is also subject to a general improvement in demand value that we're all expecting in quarter 2 -- second half of the year.
And my last question, sir, you have written the lit that you want to add target is to add 20 new restaurants. This is on the net basis, right?
No, gross basis. I should have clarified that.
On gross basis. And okay. So then what on a net basis, you would be only adding 12 stores, 13 stores, sorry.
No, we're around 10-odd because in this quarter also, we might have a couple of closures. So look, on the store front, let me clarify, we are long-term believers in obviously our model, right, both Barbeque Nation Toscano and international opportunities. I think today, the time is not to expand and opening stores are relatively easier. We have history of opening up 10 restaurants every quarter or 3 to 4 restaurants every month, right? All we are saying is that today, given the capacity that we have created, it's time to utilize that capacity and increase the revenues from the existing capacity we created either opening up in capacity. So rest assured, the moment we see that happening and the signs are very encouraging based on our month-on-month performance over the last 6 months, we will speed up on expansion also very quickly.
The next question is from the line of Mythili Balakrishnan from Alchemy Capital Management.
A good set of numbers even the demand environment. Just a couple of questions. First on the -- if you could help us with the of further cash from operations, CapEx and FCF in the pre-Ind AS world? For the quarter?
Yes. So, cash was around INR 16-odd crores. This is cash profit I'm talking about. So out of INR 18.5 crores of pre-COVID EBITDA, we have 16 crores of cash coming. CapEx was around INR 30-odd crores. Now this includes 4 new restaurants. So, one of the international is slightly high CapEx and also 2 renovations that we have done during the quarter and money that we'll spend on maintenance and general upgrade a few of our assets. Yes, that's it. is there something else Maithili?
In terms of the demand trends, I also wanted to get a sense, is there any difference which you are seeing in terms of Tier 1, Tier 2 in terms of metros in terms of malls, high streets, et cetera, if you could sort of just help with that.
So if I look at last quarter versus this quarter, given that we are around 20% growth, we have seen growth pretty much across all verticals. But that weekdays have done better than weekends. Weekends have also grown in double digits. In terms of domesticable spread barring 1 or 2 cities in South, we have seen very broad-based growth. In fact, tier 1 and tier 2 also has reacted extremely well to some of the promotions that we have done. And the numbers I'm talking about is more on volume base rather than just overall revenue base, but the net is also a bit very similar. So tier 1 tier 2 also has responded very well to the price-based offer.
Got it. Rahul given and just to get a sense like how much of your revenues would be from repeat customers given that you do track them with some form of the cell phone numbers, et cetera?
So it's around 50-50. So if I look at on a daily basis, whatever customers who dine with us, 50% customers or existing customers, which means that we have the volumes on the system before and 50% of our new customers. But as we always said, you should look at this data with the fact that our average group size is around 4.5%, right? So every time, say, 4 or 5 people come to us, you only get one by number. So at least 50% repeat is also very good. And if I apply a factor of, say, 2 also or 1.5% also 75% business typically comes from them.
Got it. And in terms of a loyalty program or something like that, what would be your sense of -- have you tried experimenting on that front as well to drive volumes?
So our loyalty program is app based. And we get almost 30% of our revenue is coming from our own app, and that's doing very well growing month-on-month. You will see that number lower this quarter is because we have -- we had a property called Happiness Card, which became unattractive in few days because the pricing in the outlet itself was lower in this case. That's why the number is low now. But otherwise structurally our total happiness card conversion was still very good. So, coming back to loyalty, 30% business comes from loyalty and almost -- sorry, from app and almost 12% to 14% of our customers who dined with us have the loyalty points added to that in the transactions.
Sorry, just wanted to get a sense of the seasonality as you head into Q2 from Q1, while Q2 tends to be weak. Just wanted to get a sense of how much has it normally been down by as compared to the previous quarter? And any indications of how it has been so far?
So around low single digits, 4% to 5% between Q2 and Q1. And currently, as I said, it's stable, the only gap…..
You are not including the fact that on a normal Q2, we would have had more stores than what you have had in the Q1, right?
No, it is including that. So last time also when I said 8% growth normally versus now 15% growth in this quarter. This includes overall business.
Okay. So it is normally a 4% to 5% decline between Q2 and Q1?
Yes.
Got it. And this time, are we trending similar or worse because of a longer shower?
So till now pretty similar, but also realize that the longer showers have covered the biggest cost about 37 – 38 days. So I think going forward, if I look at like-to-like Saavan days, we're actually better than last year.
Thank you. Ladies and gentlemen, that would be our last question for today. On behalf of Ambit Capital, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines. Thank you.