**Daryaganj Hospitality Plans Major Expansion Amid Legal Dispute**
Daryaganj Hospitality Pvt. Ltd, a North Indian restaurant chain currently embroiled in a legal dispute with rival Moti Mahal over the origins of the beloved butter chicken dish, is set to expand its footprint from 15 to 50 outlets within the next three to five years. Co-founder and CEO Amit Bagga announced that the company has allocated ₹60 crore for this ambitious growth, which will be financed through a combination of internal funds and private investments from family offices.
Since the pandemic, Daryaganj has been profitable, allowing it to consider self-funding its expansion. Bagga stated that the company will initially focus on the top eight cities in India, aiming to enhance its presence in key markets. In FY25, Daryaganj reported a gross revenue of ₹100 crore and anticipates reaching ₹120 crore by the end of FY26, driven by both same-store sales growth and the addition of new locations.
Bagga emphasized that North Indian cuisine is the most popular dining choice in the country, and Daryaganj aims to cater to families with a mid-range price point of ₹800-900 per person, a segment with limited competition. Currently, the company operates all its restaurants directly, without franchising, and plans to increase its total restaurant count to 20 by FY26, including several delivery kitchens.
The expansion comes as Daryaganj continues to navigate a legal battle with Moti Mahal over the rights to iconic dishes like butter chicken and dal makhani. Daryaganj claims that its ancestor, Kundan Lal Jaggi, played a pivotal role in establishing the original Moti Mahal in Peshawar in 1947 and contributed to the creation of the butter chicken recipe. In contrast, Moti Mahal asserts that its founder, Kundan Lal Gujral, invented the dish and brought it to India after Partition, leading to a lawsuit against Daryaganj for trademark infringement and other allegations.
Daryaganj has countered that the photograph in question, which Moti Mahal claims is proprietary, is a joint asset, as both founders were involved in the establishment of the original restaurant. In 2023, Daryaganj registered the tagline “Inventors of Butter Chicken & Dal Makhani” as a trademark without facing objections. The ongoing legal matter is currently under review by the Delhi High Court.
As Daryaganj Hospitality embarks on this significant expansion, it remains to be seen how the legal proceedings will unfold and impact the brand’s growth trajectory.
**FAQ**
**Q: What is the current status of Daryaganj’s legal battle with Moti Mahal?**
A: Daryaganj is currently involved in a legal dispute with Moti Mahal over the origins of butter chicken and dal makhani, with the case under review by the Delhi High Court.