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Barbeque-Nation Hospitality Ltd
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Ladies and gentlemen, good day, and welcome to the Barbeque Nation Q3 FY'23 Post Results Analyst Conference Call hosted by Ambit Capital. [Operator Instructions] Please note, this conference is being recorded. I now hand the conference over to Vidisha Seth from AMBIT Capital.
Thank you, and over to you ma'am.
Good evening, everyone. Welcome to the Q3 FY'23 Earnings 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, Chief Financial Officer; Mr. Anurag Mittal; and Mr. Bijay Sharma, Head of Investor Relations.
Before we begin our presentation, I would like to remind you that some of the statements made in today's conference call may be forward-looking in nature and may involve risks and uncertainties. Kindly refer to the earnings presentation for detailed disclaimer. I now hand over the conference over to Mr. Kayum Dhanani. Thank you, and over to you, sir.
Thank you. A very good evening, ladies and gentlemen. I take the pleasure to welcoming you to Q3 FY'23 conference call of Barbeque Nation. During the quarter, we opened 10 restaurants and closed 3 restaurants resulting in net restaurant count to 212. Of the existing 212 restaurants Barbeque Nation India network has 192 restaurants, Toscano has 14 restaurants and international portfolio includes 6 restaurants...
Sorry to interrupt ladies and gentlemen, we seem to have lost the line of Mr. Dhanani. Please stay connected.
[Technical Difficulty]
Sorry, I didn't know where I lost. But anyway, so during the quarter, we opened 10 new restaurants and closed 3 restaurants, resulting in net restaurant counts of 212. Of the existing 212 restaurants Barbeque Nation India has 192 restaurants. Toscano has 14 restaurants and international portfolio has 6 restaurants.
Currently around 14 restaurants are under construction, and we are confident of achieving our target of 40 new restaurants during FY'23. During the quarter, we noted subdued demand environment, which led to marginal decline in same-store sales growth by 1.2% minus. Our revenues from operations for the quarter grew by 14.5% as compared to the same period last year.
This growth was led by 18% in dine-in business driven by both increase in dine-in volumes and prices. Our sequential basis, our dine-in business grew by 4.4%, led by volume growth. Delivery business has seen a growth of 15% on a sequential basis, entirely led by volume growth. Our gross margins improved by 60 basis points compared to the previous quarter.
This was driven by a stable price in our input costs mainly lease basket and internal operation efficiencies. Our reported EBITDA margin was 19.2% as compared to reported EBITDA margins of 24.5% in the same quarter of the previous year. Our margins were impacted by a higher mix of new and yet to mature restaurants, coupled with lower than the expected SSSG growth of the matured portfolio.
As we navigate the current uncertain demand environment, -- we continue to remain focused on growing our core dine-in business and continue the momentum in our delivery business. Our Toscano business has been growing well, and we plan to increase the expansion pace in the coming years. Similarly, our international business has delivered strong SSSG and margins, and we can to continue to calibrate expansion in this segment.
With this, now I hand over to Rahul to take you through the quarterly performance. Thank you very much. Over to you, Rahul.
Thank you, Kayum. Good evening, everyone. In quarter 3 FY'23 consolidated revenue from operations were INR 328.2 crores, delivering year-on-year growth of 14.5% and sequential growth of 5.7%. This growth was predominantly driven by new restaurant additions and growth in dine-in business. Our dine-in business grew by 18% over last year, driven by both volume growth and increase in average price [ realization ].
Our dine-in segment grew 4.4% on sequential basis, driven by volume growth during the quarter. After 5 quarter of sequential decline, our delivery business grew by 15% on sequential basis, entirely led by volume growth. Our average order value on delivery segment has been stable now for 3 quarters. On year-on-year basis, our delivery segment has declined by 3%, led again by a decline in average order value, which was offset by increasing number of transactions in the delivery segment.
Dum Safar our new biryani brand is now available at over 50% of our network and continue to generate strong traction with customers. Average daily sales in Dum Safar has grown on month-on-month basis since its launch. We are focused on further increasing the [ area ] and launching this across all Barbeque Nation outlets. Our SSSG during was negative 1.2%, primarily led by subdued demand environment.
SSSG in our core dine-in segment was positive 1.7% while SSSG in our delivery segment was negative, sequential increase in our delivery business was encouraging. SSSG was also partially impacted by [indiscernible] from new stores especially from certain stores opened in Tier 1 cities with only one restaurant.
The year in 6 of our existing Tier 1 cities, we opened second restaurants, which led to cannibalization of existing stores. Even though the overall market in these 6 cities have grown by around 30%. After adjusting for these cities, like-for-like growth in balance portfolio is flat and dine-in like-for-like growth in this portfolio was positive 2.8%.
Comparable gross margin for the quarter was 66.7% compared to 66.1% in quarter 2 FY'23. We're able to marginally improve the gross margin as compared to the previous quarter again primarily driven by operating expenses and stable input costs. Reported EBITDA for the quarter was INR 63 crores with margin up 19.2%, as compared to EBITDA margin of 24.5% in the previous year same quarter.
Adjusted EBITDA margin, which is [ pre-India ] is 116 was 10.7% during the quarter as compared to 15.8% in quarter 3 last year. Of the total 5.1 percentage point decline in margin, approximately 190 bps was due to lower SSSG and impact of negative operating leverage, around [ 220 bps ] was impacted due to change in revenue mix between matured and new stores.
Matured restaurants contributed to around 81% of total revenue this quarter, as against 5% of the previous quarter -- previous year third quarter. And the balance 90% basis points was on account of lower onetime other income and higher corporate expenditure as a percentage of sales. Of the total network of 212 restaurants, 56 restaurants are classified in the new restaurant bucket and out of this, 43 were added only in last 1 year. The revenue [indiscernible] matured portfolio was lower than our expectation, and this has also impacted our margins. During quarter 3 FY'23, the matured portfolio delivered average annualized revenue of INR 6.8 crores per restaurant with average restaurant operating margin of 19.2%.
Our new restaurants reported margins of 5.3% with average annualized revenue of around INR 4.5 crores. As the maturity profile of this new restaurant portfolio increases the average revenue and margins in this new restaurant cohort [indiscernible] improve. On a 9 month basis, this matured portfolio delivered annualized revenue of around INR 6.9 crores per restaurant, with restaurant operating margins of around 20.2%. We have been focused on enhancing revenue per restaurant for our matured portfolio and also have undertaken various initiatives with focus of enhancing the volume growth, both for our dine-in business and our delivery business.
Overall app downwards have increased to around 5.4 million and the share of Barbeque Nation India revenue from owned digital assets was 27.6% in quarter Q3 FY'23. On a segment basis, our other 2 segments have performed extremely well. Revenue from Toscano business increased by around 45% this year compared to same period last year. And also, this is driven by strong same-store sales growth and 3 new stores that we opened.
The business continues to generate very strong margin. And similarly our international business recorded year-on-year revenue growth of around 23% with very strong margins. In the short-term our focus will be increasing volumes in both our dine-in business and delivery segment and in the medium- to long-term we are focused on our 4 pillar strategy of accelerating Barbeque Nation India dine-in business delivery unlocking the growth potential of Toscano and calibrated international expansion. With this, we can now open the session for Q&A.
[Operator Instructions]
We have a first question from the line of Kapil Jagasia from Nuvama Wealth Research.
My first question is on same-store sales growth which has been negative after quite some quarters. So how are you taking this internally? And for next quarter, are we seeing this in a positive [ energy ] like how the month of Jan has been for us?
So on the same-store sales growth, I try to give some color on the SSSG numbers. So one is -- there are 2 parts to it, one is our dine-in segment. Our dine-in segment has been positive. And on the delivery side, as you know, versus last year to this year, our business is down a bit, right? We have been facing this for quite some time, but I'm very happy to see that in this quarter, there was an uptick, right? So that is on SSSG front we also [ realized ] to say faced some issues overall in the demand environment and in specifically the month of November was not that great. Even October -- was a lot of festive season and given that our prime business is dine-in, which is not doing the festive season, the event are more -- most [indiscernible] towards family gatherings, right. So coupled with these two, the impact was there. Unfortunately, we're not seeing any uptick in the current quarter also. January month was pretty much, again, lower in terms of more than our expectation on the SSSG side.
Okay. So like with this, we like reiterate the opening of 40 restaurants annually? Or like we would be revising this target closer to Q4?
So look, on the new store side, I think it's a function of the market opportunity the stores that we're opening up in largely metro market for example, we haven't seen much cannibalization. The numbers of 6 stores that I gave you is out of 30 stores that we opened up this year overall again 24 stores have not led too much cannibalization. So I think our expansion strategy will be based on whether the individual outlet restaurant or the size that it is in the evaluation [indiscernible] not and if it crosses the threshold of our return profile of our payback period. I think we'll go ahead and do that.
And just one bookkeeping question from my side. Other overheads have increased by 20% this quarter. So could you help us the [indiscernible] for the [indiscernible], right? Any one-offs there?
No, there are no one-offs. I think other overheads are largely a function of only expansion, even the occupancy costs and other overheads, right?
So that's a function of only expansion.
So this would be the run rate going forward also?
Sorry, say that again, please?
So this increase, would it be the run rate going forward also, this [indiscernible] of other overheads. So this would be kind of a quarterly number going forward?
Yes. So other overheads are large include fixed expenditures. So this should be the [ update ].
We have next question from the line of Percy Panthaki with IIFL.
My question is on the margin. So with INR 6.3 crore per annum annualized sale that you have done this quarter your EBITDA margins are [indiscernible] one of the years FY'17, '18, or '19 one of the years, I think you had done similar kind of sales actually mainly marginally lower [ 6 to 6.3 ] kind of but your margins were 14%, 15%. And at that time also, you were adding quite a lot of new stores in the 2 or 3 years run up to that year, there were a lot of news store additions even then. So why is it that this time you're not able to sort of clock good margin? And what is your outlook on FY'24 margins given the kind of overall macro environment that we are in?
So yes, in FY'17, '18, also we are growing. And obviously, we have always reiterated that our overall growth will be driven also by the growth in new stores, right which will come up pretty much every year. I think if you look at our current year -- the current quarter numbers and the mix of revenues, or the percentage of revenues that come from a new store is approximately 20% and 80% comes from our [indiscernible] matured restaurants. Last year, this number was 95 [indiscernible], which means that the average maturity profile of the new store is now on average around 8 months or so, which is delivering around 5% of margin today. As this maturity profile goes up and if it continue doing say 8 or 10 restaurants every quarter. I think the percentage number of this new store contribution will peak next year and post [indiscernible] again start coming down.
And once the average maturity profile of new basket increases, which will deliver margins of higher than say 5% goes up to say 10%. This incremental 5% margin on this bucket of, say 20% sales, will add to 1% margin. So in general, our drag from new restaurants in margins are approximately 1%. But I think the short-term, this quarter, I think also for FY'24, the drag of new stores on the margins will be around 2 percentage points.
Sir, even if I adjust 2 percentage points, Rahul, basically, this 10.5% will go up to 12.5% kind of a number, which is significantly lower than the 14%, 15% that we are targeting. And as I was saying, it's not as if the sales per store is really very low, it is INR 6.3 crores. We have done INR 6.3 crores in the past and still delivered a much better margin. So what is really going on here? I mean given that this drag is going to continue in FY'24. Would it be fair to say that the full year margins could be in single digit? Because in the best -- seasonally best quarter you have done 10.5% this quarter.
Yes, it was seasonally best quarter, but the numbers on revenue per store is not as per seasonally best quarter, right? So if you compare this against 5 years back, with the cost structures of [indiscernible] and at the same revenue per store these margins are possible. So as compared to last year same quarter versus now, there is impact of negative SSSG. And obviously, the negative operating leverage, which has kicked in, which has reduced the margin. I think going forward, if you can get to say 5% same-store sales growth that's when the negative 1.9% from matured portfolio will go away, and that will give push to our margins. Certainly, the new store drag which is 2% will come down to 1%. So that's another 1 percentage point coming from there. And obviously, margin benefit will come from corporate expenditure [ representative ] of sales. I think whatever new additions that we need to do in our corporate teams or additions -- with all in place so that one does not change much. So it's more a function of I think lower sales in the matured portfolio than anything else.
So even assuming a 5% same-store sales growth in FY'24, but taking into consideration the new store drag, et cetera. It seems that the margins on the consol entity for the full year would hover in that 11% to 12% kind of band. Is that calculation more or less correct in your view?
No. So -- if this quarter is around 11% -- 9 months is 11%. I think the drag of 1.9% should not be there, so that should add on couple of 2 percentage [indiscernible] of 5% SSSG. So that will go up to 13%. And then the FY'24, the [indiscernible] new store will be 2%. So it's around 13% should be there assuming 5% [indiscernible].
So 13% margin assuming 5% SSSG and what is the sensitivity to the [indiscernible] if 5% becomes 0. Then this 13% goes down to how much in your view?
So around 11% or so.
[Operator Instructions] we have a next question from the line of Pritesh Chheda from Lucky Investment Managers.
Sir, when we look at the revenue of the new outlets, it's like say about 65%, 70% of the system revenue. And we hide these kinds of numbers in the past, but the margin profile seems to be fairly low. Is it that these new restaurants have a different store selection basis or some area basis, which you want to highlight? And also, in the past calls, we had asked you specifically that when you have a 15%, 20% kind of a store expansion as a percentage of your total network in place, will you go through margin changes and you had categorically said no saying that my stores usually come within 6 months of the store opening they are at the system level.
So where are we missing out on the whole commentary which you had given all these quarters and when you look at the number and the margin analysis which you're giving incrementally?
So I think on the new store. No, there is no different kind of selection. So it's pretty much the same portfolio that we've always been doing. On the new store portfolio on the maturity profile, I think we have always said that typically for the first 6 months it's almost [indiscernible] at the end of year 1, it sticks to around 7% to 8% at the end of say, year 2 it will be around 15%, and the year 3 it was just around 20%, 21%. So that has always been maintained. There's no change in any of that commentary, and that's the profile that we have been seeing historically till now. I think the mix has changed between new and old versus last year and this year. This mix, given that we're expanding, will also increase in FY'24 post that it will start coming down as the average maturity profile of the entire basket sort of goes up and the new margin from the new portfolio goes up from 6.5% to close to 10%. So that's the one impact. I think the other big impact that we're seeing is a couple of percentage points drop because of the negative SSSG and the impact of negative operating leverage.
Rahul, you said that year 1 is 8% margin on a new store right? That is basically it adds on to the revenue and the absolute EBITDA of the existing store, right? So in the initial conversations, it was assumed that there should not be any drag on the overall P&L of the company, but it happens to be the otherwise. So in that situation, is SSSG the only culprit for bringing overall P&L numbers?
We've clearly given a bridge of the margin. So let's just stay with that 8% number that we've just mentioned. If the matured portfolio is at 20% and the new portfolio is at -- we're reported 5% margin on new portfolio. The gap is 15% on the new versus matured portfolio. And it's a mix of new versus old will change from say 5% to 20%. And the balance 15% portfolio, we have a 15% difference, which will lead to close to 2.2% drag. What we're saying is that this will -- as the margin profile of the new bucket goes from 5% to 10%, the incremental 5% on so almost 20% of the portfolio, which will reduce the drag from 2% to 3% to 1%. So the drag from new portfolio has always been 1% just that as we're expanding and do not open any outlets say, 1 year back and before that, during COVID time, the overall margins of the new portfolio is around 5%.
So next year, when you add another 40 stores, you should not have this situation, right?
Next year, based on the historical margin profile, the new average maturity of the new portfolio will change, and the margin from this bucket should move from 5% to 10%. This is based on obviously -- our working on the historical margin profile.
Right. Because then you'll have 3 buckets. One, which is a matured store with a matured margin, stores which is 1 year old, where the margin improves and store, which is next the newer ones.
I think we will continue with the two buckets only, which is a mature versus new.
Yes. But this year, you had a classic situation where you did not have store opening last year, and you have all the store opening this year, right?
Yes.
So if you have to understand, it will get into your base, let's say, another 2 quarters from now?
No, I think if you look at by end of FY'24, if we add 10 restaurants every quarter, the proportion of matured restaurants versus new restaurants, which is now probably 80-20 will move up to around 70-30. But subsequently after the [indiscernible] coming down by 5 percentage points each quarter and stabilize at 20%. But the average margin of that bucket should go up.
Yes, that 30% will go up, right, which is 20% today with 30% -- but that 30% bucket will go up in margin.
Yes.
And why was it that -- and why are we saying now that the store addition in 6 of the cities is splitting up the store business?
No, no. So look this is just to give you some additional color on your same-store sales growth, right? It is -- and it is nothing new. Historically, also when we've expanded in Tier 1 cities in the past, there's only one restaurant in a city and the entire city comes to that restaurant. If you go and open the second one, the first restaurant in that city will definitely see the cannibalization. But once we open the second one, the third one, fourth one, I think that impact goes down completely.
Today, when we open a new outlet in a metro market, for example, any of the metro markets, Bangalore for example, we have 20 outlets. We don't see any cannibalization [indiscernible] and we're not saying that impacts our [indiscernible]. Also in Tier 1 cities, for example, in Lucknow we have 4 outlets, in Ahmedabad, we've 4 outlets. In those cities, you don't see much cannibalization. In some of Tier 1 cities, when you open from first to second, we see some [ cannibalization ]. So the number that I gave you is just to give you some color on [ SSSG ], but does it mean that we'll stop expanding in Tier 1 cities from one restaurant to second restaurant? No. It doesn't mean that.
[Operator Instructions]
The next question from the line of Harit Kapoor from Investec.
So just firstly on the reason for the store closures, I think it was 3 in this quarter, right? So what's really happening there is it a Tier 1 phenomenon, metro phenomenon's? Could you give us some sense on what's happened there?
So two of them are in Tier 2, Tier 3 markets, but that bucket [indiscernible] actually Tier 3 bucket. We have been on those stores were operating for almost, I think, 3 years, but we didn't see that expansion in margin time. I think our biggest issue was the management [ bandwidth ] that used to take. So you just shut it down and move some of the equipment from there [indiscernible] any outlet. And one of them is in -- is in one the Tier 1 market, which is very close to one of the outlets already there. So I think the outlet next to it was almost doing the 3x of what this outlet was doing. So it's -- I think the location of this particular site was as issue. So we closed that and some business already seen moving to the original one.
Okay. Okay. Okay. And given your current portfolio of 212-odd restaurants, do you see a requirement -- I know it's ongoing, but do you see requirement of closures over the next, say, 6 to 12 months in some of them? Are you kind of -- your mark some of them where we could see closure?
So some are definitely in our watchlist. I think -- if really 6 months from now, maybe 3 restaurants or something, 3 to 4 restaurants something that we might take a call on. And that's largely to do with -- not performing and disproportionate bandwidth going on some of the drag in portfolio. So we will course-correct that.
And are these also in your Tier 1, Tier 2, Tier 3 kind of market?
So most of these are in Tier 3 markets.
Okay. Does this -- just a follow up on that. Does this -- kind of not concern you, but there are some questions on Tier 2, Tier 3 -- being able to take the kind of stores that you open and the APC and the kind of format or you just think these are half of the course this is bound to happen iterations, et cetera. How do you kind of when you take a step back, how do you view this? Because you are not -- this is not a company which typically required to do much store closures given that they were metro and Tier 1 centric. So just to get your thought process on this.
No. I don't think fundamentally there's a question this model of Tier 2, Tier 3. Yes, there have been some poor selection in this process, but we still have around 55 or 56 of these stores in these Tier 2, Tier 3 locations. Maybe in 4, 5 of them or say 10% of this Tier 2, Tier 3 location, we are early in this market, maybe the location was not that great. So the pricing power was not there. So some we have corrected. I think in some cases, we've also ensured that we just go to the prime sites of these Tier 2, 3 markets so that the demand is not a problem. So those [indiscernible] are doing, but like we've always maintained, I think in terms of our growth 70% of this growth will be driven by metro and Tier 1 markets and the balance 30% will come from Tier 2, Tier 3. So I think fundamentally, at this point of time, I don't think we are reevaluating that and I'm saying we will not go to those markets.
Okay. Got it. And in terms of your confidence level for next year's expansion, 35 to 40 stores, I know you're obviously in advanced stages there across at least for the next say, 6 months or so. But given the environment, we're fairly confident that you should be able to do 35, 40 or there is -- maybe if demand is not great you may want to shift this out a little bit? How are you thinking of expansion say going into [indiscernible]?
So all of these are independent market evaluation, right? And most of -- and these terms are very long-term, right from 12 to 15 years. So it's not that this quarter also, I know demand was under pressure, but if look at my core dine-in business, in some of our large product portfolio we have still grown by around 3 percentage points, right? And in some cases, metro markets have done better, our Tier [indiscernible] has not done that great. So I think these things are bound to happen. We will have a couple of quarters not doing that great. But -- not that on a history of 15 years this is happening for the first time. So I think, we will be very cautious of what [ size ] it will do. If you look at our expansion this year in FY'23, this is largely skew towards Barbeque Nation, right?
Out of, say 40 sites that we opened this year around 37 of these are from Barbeque Nation, 3 coming from Toscano and none from international, right? I think other two segments of the business are underpenetrated. On Toscano, we have 3 sites under construction already. And this year, we plan to at least add 8 to 10 sites on Toscano. On international front, we have also now 2 sites under construction. I think for the long period of around 3 years, we've not expanded international site that business is doing [indiscernible] EBITDA margin. We have cash flow accumulation there raising that cash to open up at least a couple of more sites in that market. So with this -- even if you open say, 25, 30 sites of Barbeque Nation as a portfolio as a consolidated entity, we'll still achieve 35 to 40 sites. So like I said, there's no pressure of opening sites, so there is no sort of -- I think -- if you reach to certain number. But if the site makes sense to us, we'll continue to do that. I don't think we have any constraints on that front.
Next question is really on this biryani format Dum Safar. So just you mentioned that you're not going to expand this across your [indiscernible] it's been already 100 plus outlets. So could you give us some more -- with any correlative or quantitative sense on how the progression has been, what are the metrics are tracking? I know you mentioned aspirationally, you would like it to be a large business so you have [indiscernible] per store kind of a module. But if you can give us a sense of where you are in that journey, what are you seeing -- what positive sides are you seeing to roll this out across the [indiscernible].
Yes, sure. It's been now close to 4 months now to this business. And frankly, I'm very satisfied with the way it has been going. Overall, I think 2 things that we're tracking here, which is -- one is what is the average rating that the guests are giving us on this. And the second is, what is the average daily sales? And is it growing on a like-to-like bucket or not? I think at a PAN India level, out of 100 stores that we are in, the first 50 stores overall are at some rating numbers. The first, the last, the next 50 that we opened up is very new to comment on the rating. But overall the first 50 which have been operational now for, say, 2 to 3 months on average is already at a rating of close to 4.2 number, right? And if you look at my first bucket and this is across these platforms.
If you look at the first set of 25 outlets that we launched in the 3 cities, there, the average daily sale month-on-month have been increasing. The month-on-month ADS on this bucket is approximately INR 7,000 now. This is per day, right? So I think on all front, we're seeing some attraction on this business. And the focus would be at least over the period of next few quarters is to maintain that guest rating, understand the feedback, if required doing the product and then sort of also start slowly and steadily scale up the average daily sales number. But early days -- but whatever we've seen in first 5 months, I'm extremely satisfied with that.
We have next question from the line of Mythili Balakrishnan from Alchemy Capital Management.
Rahul, could you help us with the cash flow, post-lease liabilities?
So during this quarter, we had operating cash of around INR 30 crores. So -- and over a period of the entire 9 months, where we made operating cash flow of around INR 105 crores. This is post-lease liability.
INR 105 crores?
Yes, for the 9-month period.
Correct. And CapEx for the same period?
So 9-month CapEx is approximately INR 110 crores that we have incurred. This includes [indiscernible] 3 categories. Around approximately INR 90 crores have gone into new restaurants, around INR 10 crores have gone to regular maintenance CapEx. And another INR 10 crores have gone into two of our specialized projects, one is biryani, Dum Safar and there is a [ water ] project that we have taken up this year.
Got it. I also wanted to check with you that what is the status on all those companies that have opening up -- the IT companies, et cetera, that work from home is still a norm? Or are you seeing some more return in terms of that crowd to your restaurants?
So still not to the pre-COVID level. But if I look at our weekday business, which is what the corporate business would contribute between the two -- between last year and this year. Our weekday business has gone up by single digits in mid-single digits. And our weekend business if I compared with last year and this year has been marginally down. And that weekend business is largely the friends and family sort of segment, which is marginally down. So on the corporate front, I think marginal push, but not to the same level as what we could see in pre-COVID levels.
So this is on a quarter -- year-on-year basis, comparing this quarter?
No, no. This is on year-on-year basis.
Yes. Got it. Just also wanted to get your sense on demand because you mentioned the fact that Jan also isn't little much better. Could you just sort of help us understand a little bit of -- is it a pushback in terms of price? Is it because of inflation within the pockets? And what has sort of been the [ SSSG ] that you're seeing in Jan?
So SSSG Jan will look very good because last year, Jan had Omicron impact, right. So this not the I think right benchmark. But overall, based on what we have seen in quarter 3 and normally what we do in January, the numbers are still not at the same level. I think from the company front, I don't think it's pricing as a company. We have not taken any price hike for last now almost 8 months. The only price hike we took is in the month of May. So I guess [ pricing ] has remained pretty much same. I think also, it's [indiscernible] pockets, it's doing good. So for example, as a cluster, I think South cities are doing slightly better each time seeing some sort of pressure. I'm looking at numbers in quarter 3.
From our end, there are multiple initiatives have been taken. There are host of campaigns that are -- have been done to target specific customer growth, specific daypart, we have some of the group offers like Gang of Grills, the Happy Monday, Tuesday offers. In some outlets we are running unlimited beverage offers. On the experience front, obviously, we have upgraded the new look and feel of the outlets. We have just spoke about a campaign called CelebrateGrillSe” where we are driving more occasions for celebrating the small and big moments of life. So those things we're doing actually.
We have a next question from the line of Harit Kapoor from Investec.
Yes, I have kind of follow up on the earlier part of same question. I just wanted to know -- Rahul, if you just dissect where the stats is strong on the demand side. We're largely metro, Tier 1 only. But is there a certain region specific stress, if you could just kind of [indiscernible] since you do get a little bit of this data, in which pockets largely any corporate and families, okay, and some sense on where these stats are coming from?
Like I said, what is last year same quarter, between weekday weekend, weekday is slightly higher and weekend is slightly lower. If I compare it against, say, pre-COVID based on the volume numbers, our weekday volumes which used to do from the corporate is still not at the same levels, right? In terms of regional cut on a broad basis, metro is doing relatively okay. Tier 2 and Tier 3 are not doing that great. In terms of further specific metros a couple of regions largely East have not done that great, but West, South has done evenly better for us.
Okay. Okay. Any similar trends you are seeing as the quarter has gone through, right -- across the quarter end probably into Jan also, very similar trend?
Yes. I think Jan is early in some places, some [indiscernible] we're improving also, right? But overall, am I satisfied with Jan numbers but we will still do, no. It's still remaining weak.
As there are no further questions from the participants, we have reached the end of the question-and-answer session. And on behalf of Ambit Capital, that concludes this conference. Thank you for joining with us, and you may now disconnect your lines.