Soup n Salad looking to raise up to Rs 10 cr

Soup n Salad, a Chennai-based restaurant is planning to raise money from a private equity (PE) or venture capital (VC) for its proposed expansion. The food and beverage chain was promoted by Bharath T Rameash, is also planning entry into retail products.

Speaking to Business Standard, Rameash said that in the next two years, around Rs 30 crore will be invested in its three business verticals of Soup n Salad, Snack Jack and and in the bakery business.

“We already invested around Rs 7.5 crore in the business, of which a major chunk went into research and development, and can invest another Rs 10-12 crore. The rest of the Rs 30 crore has to come from the investor,” said Rameash.

The company is looking at raising money, mainly to support its expansion of Soups n Salad chain and to support its bakery business. The bakery business alone would require around Rs 10 crore investment. “There is a huge space in the B2B segment for pastries and confectionery items,” he said.

The company supplies bakery products to 35 major clients, including Java Green, several cafes, hotels, multiplexes and companies in Chennai, through Grand Mathway Bread House, which was acquired a year ago by Soup n Salad. Soups n Salad cafes will be increased to 15 across Chennai, Bangalore, Hyderabad, Pune, Mumbai and Delhi. At present, the company has three cafes in Chennai.

Each Cafe will spread across in 1,000-1,500 sq.ft and would require an investment to the tune of around 75-80 lakh, in a prime location and around Rs 50-60 lakh in suburbs.

The company is planning to take up both company-owned and franchise run outlets. Atleast two cafes in each will be owned by the company, he noted breakeven would be around 2-2.5 years”. The cafes will come in prime locations and cater to niche and up-market customers. The company is planning to come out with its own branded sauce, ketchups, oils, powders and packed food beverages. The company is planning to test the products for the next two months in Chennai, before marketing them over the the next 5-6 months.