Foodhall is shut, but Biyani sisters are not done with gourmet food yet

New Delhi: Retailing veteran Kishore Biyani’s daughters are returning to food retail with Food Stories, a gourmet food and experiential retail format on the lines of their previous Foodhall venture.

The new venture will begin at New Delhi’s Ambience Mall later this week, two people aware of the matter said. The Biyani sisters—Avni Biyani Jhunjhunwala and Ashni Biyani—had begun their Foodhall premium food chain from Mumbai’s Palladium Mall in 2011.

The Biyani sisters’ return to food retail comes on the back of rising demand for specialized foods and wellness products as well as a general uptick in premium foods. The venture is funded by a Mumbai-based family office, the people cited above said on condition of anonymity.

Founded in 2011, the Foodhall chain operated under 10 stores in India, selling a variety of imported produce such as cheese and condiments, according to Future Retail’s annual report for FY21. By 2023, all stores were shuttered, following insolvency proceedings against parent Future Retail initiated by its creditors.

Food Stories will sell gourmet foods such as cheese, condiments, fresh produce, packaged foods such as spices, oils, snacks and meats from both imported as well as homegrown brands. It will also start e-commerce operations in Delhi later this year, said another person aware of the development.

Avni Biyani declined to comment when contacted. Kishore Biyani did not respond to queries sent by Mint.

Increasingly, companies and brands are chasing affluent Indian consumers who are driving up sales of expensive cars, real estate and bags among others.

In premium foods, too, more companies are stepping in, increasing the competitive landscape for the Biyani sisters.

For instance, last year, Spencer’s Retail Ltd, an RP-Sanjiv Goenka Group subsidiary, announced its foray into upmarket grocery retail under the Nature’s Basket Artisan Pantry brand, citing demand for pricey truffle, caviar, and exotic mushrooms. The chain planned to open several stores in Mumbai and Kolkata, Shashwat Goenka, chairman, Spencer’s Retail, had said in November.

Nature’s Basket Pantry aside, several metros also house local premium gourmet chains that appeal to upmarket shoppers. These include chains such as Le Marche and Modern Bazaar.

Additionally, the Biyani sisters have set up Think9 Consumer Technologies, which promotes and develops digitally native brands. Think9 works with brands across consumption categories like fashion, food and wellness, beauty, and home and decor. Its portfolio comprises brands such as apparel brand Kingdom of White, Italian snacking brand Sorrentina, wellness brand The Good Bug, and personal care brand Beauty in Everything (BIE).

The sisters are also set to launch another retail concept under Broadway—to “empower digital-first” brands with stores in prime malls. These experiential stores will introduce shoppers to more than 100 new-age brands and 1,000 products and trends via events and experiences, according to a job description floated by the company and a copy of which has been seen by Mint.

Meanwhile, Food Stories is being set up via a separate entity. The store in Delhi, a 10,000-sq ft. retail format, will also house a 30-seater all-day dining café that showcases an organic estate-to-cup coffee programme, a luxurious single-origin chocolate experience, bespoke cheese, single-origin spices and dry fruits, farm-sourced fruits and vegetables, according to a person aware of the company’s plans.

The move marks the re-entry of the family in the food retail business, after it failed to sell its debt-laden retail and consumer businesses that were adversely impacted by the pandemic.

In 2020, Mukesh Ambani's Reliance Industries Ltd announced the acquisition of Future Group’s retail, wholesale business and the logistics and warehousing business for ₹24,713 crore. However, in 2022, after a prolonged battle for ownership, Reliance Industries called off the deal. In the same year, Reliance Retail took over leases of hundreds of Future Retail stores.

Meanwhile, an application for Future Retail Limited’s liquidation is still pending before the National Company Law Tribunal. FRL owes its creditors led by Bank of India over ₹19,000 crore, according to claims submitted and approved under the insolvency process.

India’s food and grocery retail market is pegged $600 billion in 2022—occupying the largest chunk of retail in India. The market is set touch $1,230 billion by 2023, according to a 2023 report by Deloitte.