Why Kunal Shah, Vijay Shekhar Sharma Are Comparing IndiGo With Barbeque Nation

Paytm founder Vijay Shekhar Sharma and Cred founder Kunal Shah took to social media platform X to discuss airline operator IndiGo’s massive in-flight food and beverage sales, which exceeded the total annual revenue of Barbeque Nation.

What Happened: Sharma took to Twitter on Tuesday to provide an insightful breakdown of the revenue of Indigo, an Indian airline, based on data shared by Manu Grover. He noted that Indigo’s in-flight food and beverage sales for FY23 reached ₹762 crore, surpassing Barbeque Nation’s entire revenue for FY22.

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Sharma further noted that around 30% of passengers consume F&B items in a flight, contributing to an average F&B revenue of ₹760 crore. Sharma estimated the profit from the F&B sales at ₹532 Cr, which is higher than Domino’s India operator Jubilant FoodWorks’ total profit of ₹356 crore for FY23.

“While many airlines face survival challenges, Indigo thrives with over Rs 500 Cr profit solely from F&B sales,” Sharma concluded.

Kunal Shah also chimed in with his thoughts on the figures, noting that the airline had a dominating position in its industry and could easily cross-sell to customers.

“Cross sell of high gross margin products is relatively easy when you have engaged affluent customers. Even more easier when they are captive with no other options be it Airport or Indigo,” Shah said.

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Posted In: Social MediaOpinionGeneralBarbeque NationDomino'sIndigoJubilant FoodWorksKunal ShahVijay Shekhar Sharma