India Hospitality takes control of Mars group

LONDON/MUMBAI: India Hospitality Corp, a London-listed firm with interest in the consumer and hospitality space in India, has taken operating control of its Indian subsidiary Mars Restaurants, the hotel and restaurant company that manages Not Just Jazz By The Bay and Pizzeria chains, from high-profile restaurateur and current president Sanjay Narang.

India Hospitality has also taken operating control of airline catering business SkyGourmet Pvt Ltd and Mars Catering Services from Mr Narang, the company said in a statement.

���Sanjay Narang and Arvind Ghei have now ceased to act as president and chief financial officer of the operating companies, respectively, following the disengagement of the operational agreements,��� said India Hospitality CEO Ravi Deol, who played a key role in the development of organised retail in India, including founding the country���s first coffee chain, Barista.

India Hospitality acquired Mars Restaurants in 2007, buying 26% from Mr Narang and 74% from Malaysia-based private equity fund Navis Capital. At that time, it asked Mr Narang to handle the operations for at least two years to ensure ���a smooth transition and business continuity���.

Mars manages a number of popular chains such as Just Around The Corner, Birdy���s, Dosa Diner, Roti, All Stir Fry and Gordon House.

As part of the disengagement, Mr Narang is restricted from entering the airline catering business for two years.
Mars Restaurants has also entered into a licence agreement with Mr Narang to use the Gordon House brand for Mumbai-based Hotel Sahar for two years. The India Hospitality management believes Gordon House will be a key driver to its growth as it develops a pan-India presence.

Mr Narang will continue to run three restaurants in Mumbai���Not Just Jazz By The Bay and Pizzeria at Churchgate and Just Around The Corner in Bandra���by paying a franchise fee to India Hospitality. ���While we own the three brands, the properties belong to Mr Narang,��� explained Sandeep Vyas, chief operating officer of India Hospitality. He refused to divulge the fee for the franchise deal.

SkyGourmet bucks recession

SkyGourmet, one of the largest domestic airline caterers, serving more than 72,000 meals every day, is building its presence in the international routes and domestic premium routes. It has managed to buck the recessionary trend in the aviation industry due to its lower cost of production and a younger workforce , a company executive said. SkyGourmet���s rivals in the Rs 600-crore airline catering business in India include hoteliers Oberoi and the Taj Group.

Mars Restaurants has also entered into a licence agreement with Mr Narang to use the Gordon House brand for Mumbai-based Hotel Sahar for two years. The India Hospitality management believes Gordon House will be a key driver to its growth as it develops a pan-India presence.

Mr Narang will continue to run three restaurants in Mumbai���Not Just Jazz By The Bay and Pizzeria at Churchgate and Just Around The Corner in Bandra���by paying a franchise fee to India Hospitality.

���While we own the three brands, the properties belong to Mr Narang,��� explained Sandeep Vyas, chief operating officer of India Hospitality. He refused to divulge the fee for the franchise deal for one year.

With most restaurants run by individuals, the organised restaurant market is still small. But with middle class consumers spending more than 13% of their income on food, branded restaurants are expected to see a double digit growth in the current year, an industry expert said.