Detailed outletwise and group trend review | April–July FY26-27 versus prior year | Prepared for Chrome Hospitality Leadership and Outlet Operating Teams
Sales ₹784.4L vs ₹829.3L PY (-5.4%). Gross consumption ₹195.9L vs ₹228.2L PY (-14.1%). Net cost ₹165.4L vs ₹201.3L PY (-17.8%). Kitchen turns 31.3x vs 38.0x PY. Bar turns 4.1x vs 6.7x PY. Purchase/sales 22.6% vs 24.2% PY. Credits/sales 2.1% vs 1.9% PY.
Sales ₹474.0L vs ₹507.2L PY (-6.6%). Net cost rate 21.5% vs 22.6% PY (-4.8%). Kitchen turns 23.4x vs 29.9x PY. Bar turns 3.5x vs 6.2x PY (-44.2%). Revenue recovery and bar inventory ageing are the priority actions.
Sales ₹310.4L vs ₹322.0L PY (-3.6%). Net cost rate 20.4% vs 26.9% PY (-24.1%) — a strong structural improvement. Kitchen turns 48.3x vs 51.8x PY. Bar turns 6.9x vs 8.0x PY. July revenue grew +18.5% YoY — a positive signal to build on.
Group revenue closed the gap meaningfully after a weak April (-15.8% YoY). May saw a brief crossover (+1.0% YoY) before June and July settled at modest YoY deficits of -1.2% and -5.0% respectively. Total YTD Group sales: ₹784.4L vs ₹829.3L PY (-5.4%). The narrowing trend from April to June is encouraging; July's widening warrants outlet-level investigation.
After recovering in May (+6.4%) and holding near parity in June (-0.9%), Late Checkout saw a sharp July dip (-19.4% YoY, ₹101.4L). YTD: ₹474.0L vs ₹507.2L PY (-6.6%).
Lyla's trajectory is positive. After a weak April (-23.3%), Lyla recovered steadily and posted a strong July (+18.5% YoY, ₹91.7L). YTD: ₹310.4L vs ₹322.0L PY (-3.6%).
Gross consumption declined YTD by -14.1% vs PY. The consumption/sales ratio improved in three of four months. June's convergence at identical absolute values (₹50.3L both years) alongside a slightly higher rate (+1.2%) reflects the lower June revenue base and merits review.
LC's June consumption rate rose to 25.8% against a lower revenue base — the rate increase alongside higher absolute consumption warrants a closer look at purchasing discipline.
Lyla delivered consistent consumption rate improvement every month — a commendable and sustained discipline across the full period reviewed.
Group gross cost improved in every month YoY. The YTD gross cost rate of 23.2% versus 26.2% PY represents a -11.3% improvement, driven by tighter consumption control against revenue. Absolute gross cost fell ₹35.0L YTD.
LC's rate was adverse in April (+1.4%) and June (+8.3%) — both months where consumption rose relative to revenue. May and July showed meaningful improvement.
Lyla improved gross cost rate every single month, with April showing the most dramatic swing (-25.2% YoY). YTD gross cost rate: 22.8% vs 28.2% PY — an outstanding structural shift.
Group net cost improved in every month of the review period. The YTD net cost rate of 21.1% vs 24.3% PY (-13.1%) reflects ₹35.9L in absolute net cost savings. Net cost = gross cost less food, beverage and liquor credits returned to cost.
LC shows variability: April and June are adverse on rate. June's net cost rate of 22.0% vs PY 19.8% (+10.7%) alongside lower June revenue calls for a review of June purchasing and credit entries. July's strong improvement (-9.5%) restores the trend.
Lyla's net cost rate improved by more than 20% YoY in every single month — a consistent and significant achievement. The YTD net cost rate of 20.4% vs 26.9% PY represents a -24.1% improvement.
Methodology: Kitchen turnover = gross food consumption ÷ average food inventory (kitchen + food stores) × 365 ÷ period days. This is an annualised rate. Group turns combine outlet consumption and combined inventories — outlet ratios are never averaged. At 31.3x YTD vs 38.0x PY (-17.8%), food inventory is moving more slowly. A higher stock holding relative to consumption is the primary driver — review minimum par levels and ordering frequency.
Late Checkout's kitchen turns declined every month and are now at 21.3x in July — materially below PY's 31.5x (-32.4%). May (-35.1%) and July are the most pronounced months. A SKU-level ageing review of food stores is recommended.
Lyla recovered strongly from a weak April (34.6x vs PY 50.7x). By July, turns stood at 51.3x — nearly matching PY's 53.7x (-4.4%). The trend of consistent improvement each month reflects tighter stock management and is the model to replicate at LC.
Bar turnover (beverage, liquor and tobacco) is the Group's most significant balance-sheet risk. At a YTD average of 4.1x vs 6.7x PY (-39.2%), the Group is carrying considerably more inventory relative to consumption than last year. July's gap is the most acute: 3.8x vs 8.1x PY (-52.5%). High-value premium liquor inventory is the primary driver. A formal slow-moving SKU review and a reorder-point reset are required actions.
LC's bar turns are low across all months, with July the most concerning at 2.8x vs PY 7.8x (-64.1%). May also recorded just 2.8x vs PY 5.0x (-44.5%). Liquor stock ageing by SKU is the immediate priority.
Lyla's bar turn recovery is encouraging — from 4.9x in April (vs PY 9.3x) to near parity in July at 8.7x vs PY 8.9x (-1.7%). The June–July improvement reflects better beverage activation and tighter replenishment cadence.
Purchase / sales should be read alongside revenue: a lower ratio in a high-revenue month (May) reflects good buying discipline. April and June show elevated purchasing relative to revenue, suggesting purchasing was not fully aligned to a rolling sales forecast. YTD P/S: 22.6% vs 24.2% PY (-6.6%).
LC's April and June P/S ratios are materially above PY, suggesting purchases were not adequately matched to revenue in those months. Introducing a four-week rolling purchase plan versus sales and consumption is the recommended corrective action. YTD LC P/S: 21.9% vs 22.2% PY (-1.1%).
Lyla's purchasing discipline improved materially in May, June and July. The YTD P/S of 23.7% vs 27.4% PY (-13.6%) is the strongest YoY improvement of the two outlets — reflecting a structured shift in buying behaviour.
What credits are: Food, beverage and liquor credits represent items returned to cost — including guest recoveries, spoilage write-offs, complimentaries and inter-outlet transfers. A rising credits ratio does not automatically indicate waste; it may reflect authorised guest-recovery or programming activity. However, credits should be reviewed for composition, authorisation level and whether they generate demonstrable guest or revenue value. June and July show a rising trend relative to PY (+32.9% and +34.3% YoY respectively) and warrant a credit-composition review. YTD credits/sales: 2.1% vs 1.9% PY (+12.2%).
LC's credits ratio improved in the first three months but rose in July (+24.3% vs PY). The July uplift should be reviewed by credit type to ensure appropriate authorisation and guest value. YTD LC credits/sales: 2.0% vs 2.3% PY (-13.0%).
Lyla's credits ratio is substantially higher than PY in all four months — driven by a very low PY base. Given Lyla's strong net cost improvement, credits may reflect authorised activities. A credit-composition register with approval evidence is recommended for clarity and governance. YTD Lyla credits/sales: 2.3% vs 1.3% PY (+83.4%).
Liquor revenue is the largest YoY revenue gap at Group level (-₹33.5L, -10.1%). Beverage is the only category growing across the Group. Food is broadly stable. Liquor recovery is important both for revenue and for unlocking bar stock velocity improvements.
Both outlets improved net cost rates YTD. Lyla's structural improvement (-24.1% rate) is the standout result. LC improved by -4.8% on a larger revenue base. The Group benefit in absolute net cost savings is ₹35.9L — a meaningful contribution to operating profit.
Bar turnover is the most critical operational KPI requiring action across both outlets. Kitchen turns are declining at LC while Lyla has stabilised near PY. Purchase discipline improved at both outlets YTD. Credit ratios warrant a composition and authorisation review — particularly at Lyla — even where net cost rates are strong. Note: Group turns are calculated from combined outlet data, not averaged ratios.
Protect the improved net cost rate of 21.1%. Revenue recovery is the primary lever — purchasing cadence must remain aligned to consumption and rolling four-week sales expectations. Formal KPI benchmarks to be approved only after management sign-off.
Priority actions: investigate and recover July revenue gap (₹101.4L vs PY ₹125.8L). Conduct kitchen and bar inventory ageing by SKU. Reduce slow-moving liquor exposure. Set weekly min-max and reorder exceptions. Align purchase commitments to a four-week rolling forecast. Protect guest availability and service standards throughout.
Protect strong gross and net cost improvement (net cost rate -24.1% YoY). Identify and replicate the operating drivers behind July's revenue growth (+18.5%). Maintain faster food inventory turns. Strengthen beverage activation, upselling and programming — without increasing uncontrolled credits. Review credit composition and ensure a formal approval register is in place.
Implement: weekly outlet exception report; monthly Group/LC/Lyla KPI review with named owners and action dates; evidence register for credit approvals; separate kitchen and bar turnover tracking; follow-up status on all actions. Next review: end-August status against this plan.
Chrome Hospitality — Detailed FY26-27 Trend and Prior-Year Review