Spice Lounge Food Works Announces Acquisition of Rightfest Hospitality LLP & Plans Majority Investment in Blackstone Management LLC

On Wednesday, shares of Spice Lounge Food Works Limited were locked in a 5 per cent Upper Circuit to Rs 49.89 per share from its previous closing of Rs 47.52 per share. The stock’s 52-week high is Rs 50.94 per share and its 52-week low is Rs 4.83 per share.

Spice Lounge Food Works Limited (BSE: 539895), an organisation already boasting over 75 years of combined hospitality expertise and a robust portfolio of global and homegrown food service brands, including Buffalo Wild Wings, Wing Zone, and TekSoft Systems Inc., announced a transformative acquisition. The Board of Directors approved the 100% acquisition of Rightfest Hospitality LLP ("Rightfest"). This move signals a deliberate and strategic expansion beyond SLFW's culinary roots, positioning the company as an all-encompassing lifestyle powerhouse in India's rapidly evolving experiential market. By horizontally expanding into high-growth experiential segments, SLFW aims to capitalise on rising demand from affluent millennials and tourists across major metros and leisure destinations, delivering curated experiences across dining, nightlife, and entertainment.

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The acquisition of Rightfest provides immediate entry into the premium hospitality and entertainment sector through established, high-value assets. Founded in 2022 and headquartered in Hyderabad, Rightfest has rapidly become a trendsetter, operating dynamic and design-forward lifestyle destinations such as XORA Bar & Kitchen and the SALUD beach club concept in Goa. Beyond its venues, Rightfest is renowned for its high-energy, multi-crore turnover live music and entertainment events, having successfully organised major shows for artists like B Praak and Mika Singh, and with upcoming events featuring A.R. Rahman. By integrating these assets, Spice Lounge Food Works Limited expects to unlock higher growth and asset-light revenue opportunities, leveraging Rightfest's brand appeal and successful event calendar to solidify its new footing.

Simultaneously, the Board of Directors took another decisive step toward global expansion by authorising Chairman and Director, Mr Mohan Babu Karjela, to analyse, evaluate, and take an appropriate decision on behalf of the Company regarding the potential acquisition of a majority stake in Blackstone Management LLC. Mr Karjela has been granted broad empowerment to negotiate investment terms and conclude the transaction, in consultation with the company's legal, financial, and strategic advisors. This mandate underscores SLFW's aggressive growth strategy, which seeks to not only dominate the domestic market but also secure international platforms for future scalability and operational excellence through experienced management partnerships.

The potential target, Blackstone Management LLC, is an international hospitality group established in 2019, specialising in Development, Management, Franchise, and Consulting services for the luxury dining and lifestyle sector. Operating with a 360° hospitality experience model, the group has developed and managed innovative restaurant concepts across Europe and the Middle East. Acquiring a majority stake in Blackstone would provide SLFW with critical global expertise, comprehensive training programs, and rigorous service protocols. Crucially, leveraging Blackstone’s proven franchise model and its commitment to global quality benchmarks would further empower Spice Lounge Food Works Limited’s international expansion, instantly providing strong branding and operational support to accelerate its transformation into a globalised food and lifestyle service leader.

About the Company

Spice Lounge Food Works Limited is a publicly listed food service company driving India's next generation of dining innovation, built on over 75 years of combined hospitality expertise. The company currently manages and scales more than 13 outlets across two states under a portfolio of leading global and homegrown brands. Formerly known as Shalimar Agencies Limited, Spice Lounge utilises operational excellence, strategic brand partnerships, and technology to deliver consistent, high-quality experiences in casual, quick-service, and fast-casual formats, aspiring to become a preferred choice for diverse dining across India.

In Q1FY25, the company reported net sales of Rs 32.29 crore and net loss of Rs 1.18 crore while in FY25, the company reported net sales of Rs 105 crore and net profit of Rs 6 crore. The company has a market cap of over Rs 3,400 crore. The stock has given multibagger returns of 933 per cent from its 52-week low of Rs 4.83 per share and a whopping 4,165 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.