Speciality Restaurants, which operates brands including Mainland China and Walter’s Burgers, plans to focus on fewer brands and expand them more deliberately under chief executive Avik Chatterjee, who took charge in June 2026, betting on profitable growth rather than the rapid rollout of outlets.
“We want to focus on building fewer brands and expanding them,” Chatterjee, said in an interview with Mint.
“We feel that profitable growth is the only good growth a company should have, and we're not believers of opening 10 restaurants just to add in revenue at all, because we've done that in the past, and that's not something we want to continue,” he said.
As of 31 March 2026, Speciality Restaurants operated 121 restaurants, confectioneries and franchise units. Its portfolio is led by Chinese cuisine brands Mainland China and Asia Kitchen by Mainland China, along with premium brand GONG. Other brands include Oh! Calcutta, Sweet Bengal, Sigree, Siciliana and Walter’s Burgers, besides cloud kitchens.
The company plans to open 10-12 restaurants a year across its existing portfolio, with another 10-15 Walter’s Burgers outlets, Chatterjee said.
Profitable growth
Speciality Restaurants’ strategy comes as the broader quick-service restaurant (QSR) industry grapples with weaker discretionary spending and higher raw-material costs. In Q1FY27, the company’s consolidated income rose 16.7% from a year earlier to ₹127 crore, while net profit increased 38% to ₹7.11 crore. It was the company’s 20th consecutive profitable quarter.
The company also reported same-store sales growth of 11.35% in Q1FY27. Peer Restaurant Brands Asia, which operates Burger King in India, reported higher SSSG of 12.6% in the quarter, but reported a ₹28 crore loss.
The contrast highlights the trade-off facing restaurant companies: driving sales through aggressive expansion can come at the expense of profitability.
Speciality Restaurants’ largest brand, Mainland China, has an average ticket size of ₹1,250 per person, making its positioning different from QSR chains that have increasingly leaned on value meals to drive volumes.
The company is also reducing restaurant sizes to lower costs, including occupancy expenses.
“We thought that having too many brands sometimes becomes unmanageable because every brand needs to be nurtured as good as a company,” Chatterjee said.
Fewer, bigger bets
The approach is a departure from the strategy followed by several restaurant operators that have built larger portfolios through acquisitions, new launches and international partnerships.
Jubilant FoodWorks, for instance, launched Popeyes in India in 2022, adding to brands such as Domino’s Pizza and Hong’s Kitchen. Devyani International operates KFC, Pizza Hut and Costa Coffee, besides Indian brands such as Vaango and Biryani by Kilo.
Cloud-kitchen companies such as Curefoods have also built portfolios spanning multiple cuisines and formats, including EatFit, Sharief Bhai Biryani, Olio Pizza, Arambham, Krispy Kreme Doughnuts, Cake Zone and Frozen Bottle.
Among these listed QSR operators, Jubilant FoodWorks has been the more consistent profit generator, while several peers have struggled to sustain profitability amid slower discretionary spending and elevated costs.
“Following an aggressive expansion phase over the last four years (FY22-FY26), most listed QSR players’ network expansion as a percentage of total stores has been moderating now,” analysts at Motilal Oswal Financial Services said in an August 4 report. “Besides, companies have been shifting their focus to improving ADS, SSSG and restaurant-level profitability. It should support a gradual recovery in unit economics and earnings over the medium term.”
Shares of Speciality Restaurants have risen 33.23% on the National Stock Exchange since January, compared with a 7.58% decline in the benchmark Nifty 50.