Olive Cafes South, a subsidiary of Olive Bar and Kitchen, is setting up three new outlets this year, including its established gastropub Monkey Bar and Asian gastro bar
Olive Cafes South, a subsidiary of Olive Bar and Kitchen, is setting up three new outlets this year, including its established gastropub Monkey Bar and Asian gastro bar The Fatty Bao and possibly a third new concept restaurant. The company will be spending approximately Rs 9 crore on the expansion.
This month, Delhi will see the third The Fatty Bao opening after Bengaluru and Mumbai and will be followed by three launches by the end of the year in Kolkata, Hyderabad and Bengaluru.
Earlier this year, the company, which is coowned by Olive Bar and Kitchen along with chef Manu Chandra and his partner Chetan Rampal, had opened Monkey Bar and The Fatty Bao outlets in Mumbai. "With the launch of Delhi's The Fatty Bao, the company will concentrate on opening more Monkey Bars and The Fatty Baos across the three cities," Chandra told ET. This will also include a new concept bar, the details of which aren't finalised yet.
Chandra and his partner Rampal own a minority stake in Monkey Bar and The Fatty Bao (20 per cent each) while Olive Bar and Kitchen owns 60 per cent of the stake in Olive Cafes South. In 2012, Aditya Birla Private Equity had invested $10 million in Olive Bar & Kitchen, which runs fine dining restaurants such as Olive, LAP, Ai, Soul Fry and Monkey Bar.
Monkey Bar aims for EBITDA (earnings before interest, taxes, depreciation, and amortization) of 15-20 per cent and requires Rs 2.75 to Rs 3 crore per unit. Chandra said the restaurants break even in 24-30 months. The duo told ET they have plans to expand to Singapore, Dubai and London in the coming year. "The funding will be through the parent company and we will be raising debt internally," Rampal said.
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