RIL in talks to takeover: If fructified, it will gain a network of about 600 Subway stores…
Those who are fans of Subway sandwiches can soon see Reliance Industries (RIL) monogram on Subway stores. If media reports are to be believed, Reliance industries owned by Mukesh Ambani have set their eyes on the single-brand restaurant chain’S India franchise.
Media reports cited, if the talks are successful then RIL will gain the network of approximately 600 Subway stores across the country. The retail company is in talks to buy Subway India for $200-250 million or Rs 1,488-1,860 crore. This comes as the restaurant chain is undergoing a restructuring process under chief executive John Chidsey and is looking to cut costs and global headcount as sales take a hit.
It may be noted that RIL is known to expand its wings in new avenues which were untapped by others. Reliance Retail is making its mark present in various segments. Earlier Reliance Retail has already forayed into a range of segments that includes grocery, e-pharmacy, payments to fashion and furniture. Quick service eateries now seem to be right up its alley.
It also may be noted that the food chain also appointed a master franchise of ‘development agents’, who directly run clusters of stores or sub-franchise stores to smaller partners. It is similar to Dabur promoter Amit Burman’s food Retail Company has their presence in Lite Bite Foods.
As per media reports, Subway global chain has been looking to streamline their India business with a local partner as against the current model of regional master franchisees and individual networks. In 2017 too, several Indian franchisees of Subway had tried to create a platform and were in talks with investors for a buy-in.
Editor in Chief : Mewati SItaram
