Chennai: In order grow its specialised restaurant chain Barbeque Nation, Indore-based Sayaji Hotels Limited will hive off the business into a separate entity.

As per the current plans, the company wants to increase the number of outlets under this brand to 100 across the major cities in India by the fiscal 2009-10.

Says Sajid Dhanani, managing director, "The restaurant business needs around Rs250 crore by the end of financial year 2008-09. We are interested in raising around Rs50 crore from private equity funds."

On an average, each outlet would need an investment of Rs3.5 crore, and can payback around Rs5 crore per year.

Sayaji Hotels has opened six Barbeque Nation outlets so far, one each in Mumbai, Gurgaon, Hyderabad, and Chennai,  and two in Bangalore.

According to Prosenjit Roy Choudhury, CEO, Barbeque Nation, funds for opening 27 outlets have been tied up with State Bank of India. "Our idea is to set up around 20 pilot restaurants in major Indian cities-tier I and II- and go in for franchisee model after that," he added.

According to Choudhury, the franchisee outlets would be managed and run by the company, akin to hotel management contracts and the property owner would be paid a fixed fee or a mix of minimum guarantee and a share in the profits.

Barbeque Nation's unique selling proposition (USP) is that it is the first Indian restaurant chain to have a hot charcoal grill provided at each guest table. Customers can try out their skills in marinating the barbeques, and grilling them on their personal grills.

The choice of grills is drawn from Pan Asian, Oriental, Mediterranean and Continental cuisines. The offer on the menu list is five vegetarian and non-vegetarian barbeque starters, with unlimited helpings. The main course will be vegetarian and non-vegetarian buffet.

The restaurant also has a liquor bar.

Speaking about the revenue mix Choudhury says, 75 per cent of the revenue will be from food while the balance will be contributed by liquor.

"Barbequed food and liquor goes well together. Every Barbeque Nation outlet will have a bar. In states like Gujarat where prohibition is there the bar will serve only non-alcoholic drinks."

In Chennai where private bars are not allowed, Sayaji Hotels has overcome the problem by housing the restaurant inside the premises of Sri Devi Hotel. As per regulations, only hotels with more than 20 rooms can have a bar, he explained.

Meanwhile Sayaji Hotel's 200 plus room hotel project in Pune is progressing smoothly and expected to be ready by December 2008.

As a test case, Sayaji Hotels has agreed to run the 'Buffet Junction' restaurant at the Ginger Hotel in Baroda. "Depending on our experience we will look at expanding this line of business," Dhanani remarks.

Recently Clearwater Capital Partners (Cyprus) Limited acquired around 8 per cent stake in Sayaji Hotels. "Clearwater's stakes would go up to 28 per cent when the company converts its foreign currency convertible bonds (FCCB)," says Dhanani.

For the current fiscal he says the company would post revenue of Rs68 crore.

Meanwhile, in a filing with the Bombay Stock Exchange (BSE), Sayaji Hotels Ltd has said that the company's sixth restaurant is opening on 21 February, 2008 at T. Nagar, Chennai.  The first restaurant is being opened by the wholly-owned subsidiary Company Barbeque Nation Hospitality P Ltd.