Chinese Wok, Big Bowl owner Lenexis to focus on expansion in smaller cities

Chinese Wok Store

Lenexis Foodworks, the parent company of popular brands like Chinese Wok and Big Bowl, is ramping up its expansion into Tier II, Tier III cities, targeting the rising demand for Desi-Chinese cuisine in those cities,  Founder and Director Aayush Agrawal told Moneycontrol in an exclusive interview.

With plans to double its network to 500 outlets over the next three years, the company aims to strengthen its footprint beyond metropolitan hubs. The food service company, which currently operates 200 stores, plans to expand its presence to 52 cities by the end of FY26. "We wanted to first have a good density in urban areas in tier I cities, and now that we've achieved that,  we want to penetrate the  Tier II, Tier III cities nearby. This is to bring in efficiency for supply chain, to create a certain brand image," he added. Lenexis expects 85 per cent of its new stores will be in these cities. According to Agrawal, its new stores take about six to nine months to reach profitability or break even.

As part of its broader growth strategy,  Agrawal is also exploring opportunities to tap into the public markets.

"We are not actively looking, but we're open to it...probably listing would be on the cards around FY 27 or 28," said Agrawal adding that the company is currently witnessing interest from both domestic and international investors.

Lenexis plans to open 130 stores by March 2026, taking the total existing store count to 330, with revenue projected to cross Rs 1,000 crore. "Right now all our mature stores are profitable. But in FY26, we want our store operating level profitability as well," he added.

The company operates a diverse portfolio of brands, including Chinese Wok, Big Bowl Company, The Momo Co, and Rolls and Bowls. Notably, 85 percent of its revenue is generated from its mature stores, highlighting the strong performance of its established outlets. It expects margin improvement by 700 to 900 basis points in FY25 compared to last year.

"I'm very bullish on the India story. With a favourable demographic profile and rising disposable incomes, the culture of dining out and ordering in is growing rapidly. We've been experiencing strong tailwinds as a result," Agrawal said. The company plans to spend upto Rs 300 crore in the next two-three years to meet the expansion target and capex would be self-funded.

Established in 2015, Lenexis Foodworks specialises in Indian-style Chinese cuisine and other Indian cuisines, the company has expanded its footprint across multiple cities, including Mumbai, Pune, Chennai, Bengaluru, Hyderabad, Mysuru, Coimbatore, Delhi-NCR, Vadodara, Ahmedabad, Lucknow, Jaipur, and Kanpur. It's presence is evenly distributed, with 40 percent of its outlets located on high streets, another 40 percent operating through cloud kitchens, and the remaining 20 percent situated in shopping malls.

As of now, the major part of the company's revenue (75 percent) is generated through online channels, such as food delivery apps or their own website, while 25 per cent comes from dine-in customers at their physical retail outlets. However, Agrawal said the dine-in segment is currently growing at a faster rate than the online segment.