Azure Hospitality, the parent company of Mamagoto and Dhaba Estd. 1986, is preparing for its next growth phase with plans to double the presence of its flagship brands over the next four to five years, said Rahul Khanna, co-founder of Azure Hospitality.
The group currently runs around 25 outlets each of Mamagoto and Dhaba across 14 cities in 12 states, with nearly 60% of its locations concentrated in the NCR region.
“We want to open between six to ten outlets every year, so we can hopefully double our footprint in the next four to five years,” he asserted.
The company plans to fund its expansion through a combination of internal accruals, debt financing, and new capital investments.
“We are going to be looking at a fundraise in the next two to three quarters. We would like to raise between Rs 150 to 200 crore,” Khanna shared.
In addition, the company employs a commissary-based model to maintain consistency across all its outlets.
“All the proprietary sauces, dips, curry pastes, and marinades of Mamagoto and Dhaba are centralized and freshly distributed to outlets daily. That’s our hub-and-spoke backbone,” Khanna explained.
Currently, approximately 80% of the group’s outlets are located in malls or mixed-use developments, with high streets making up the remaining 20%. While Mamagoto and Dhaba continue to serve as the primary growth drivers, Azure Hospitality also operates other concepts, including Sly Granny, Maalgadi by Dhaba, and Speedy Chow.
“Sly Granny is not a brand we are looking to expand aggressively, though 45 per cent of its revenue comes from alcohol. We might add one or two outlets a year,” Khanna said.
The company is also planning to launch a new liquor-led concept in tier II and III cities.
Azure Hospitality aims to achieve a topline of Rs 200 crore by the end of this fiscal year, up from approximately Rs 140 crore in the previous fiscal. Both Mamagoto and Dhaba deliver EBITDA margins of 20–23% and experience year-on-year same-store sales growth of 6–8%.
“Our average spend per person hovers between Rs 850–1,100, and liquor only contributes about 10 per cent of revenue, which makes these concepts strongly food-driven,” Khanna concluded.
Azure Hospitality aims to drive sustainable growth in the Indian casual dining and premium QSR segment over the coming years by doubling the footprint of Mamagoto and Dhaba, leveraging a commissary-led model, and targeting a Rs 200 crore topline.
