Speciality Restaurants is implementing a fundamental shift in its expansion strategy under new CEO Avik Chatterjee, who took charge in June 2026. According to reports from Mint, the company is prioritizing profitable growth over rapid expansion, focusing on building fewer brands and expanding them more deliberately. Chatterjee emphasized that the company is not believers of opening 10 restaurants just to add revenue, as they've done in the past and don't want to continue this approach.
The company's strategic approach is yielding strong financial results, with consolidated income rising 16.7% to ₹127 crore in Q1FY27 compared to the previous year. As reported by Mint, net profit increased 38% to ₹7.11 crore, marking the company's 20th consecutive profitable quarter. The company also achieved same-store sales growth of 11.35% in Q1FY27, demonstrating strong operational performance across its existing portfolio.
According to Mint reports, Speciality Restaurants currently operates 121 restaurants, confectioneries and franchise units as of March 31, 2026. The portfolio is led by Chinese cuisine brands Mainland China and Asia Kitchen by Mainland China, along with premium brand GONG. The company plans to open 10-12 restaurants annually across its existing portfolio, with an additional 10-15 Walter's Burgers outlets. Chatterjee noted that having too many brands can become unmanageable, requiring each brand to be nurtured as well as a company.
As reported by Mint, the company's strategy comes as the broader quick-service restaurant industry faces challenges with weaker discretionary spending and higher raw-material costs. Peer Restaurant Brands Asia, which operates Burger King in India, reported higher same-store sales growth of 12.6% but posted a ₹28 crore loss in the quarter. This contrast highlights the trade-off facing restaurant companies between driving sales through aggressive expansion and maintaining profitability.
According to Mint reports, Speciality Restaurants' largest brand, Mainland China, maintains an average ticket size of ₹1,250 per person, positioning it differently from QSR chains that have increasingly leaned on value meals. The company is also reducing restaurant sizes to lower costs, including occupancy expenses. Analysts at Motilal Oswal Financial Services noted that most listed QSR players' network expansion as a percentage of total stores has been moderating, with companies shifting focus to improving average daily sales and same-store sales growth. Shares of Speciality Restaurants have risen 33.23% on the National Stock Exchange since January, outperforming the 7.58% decline in the benchmark Nifty 50.
