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Reliance Retail in talks to buy Subway India for $200-250 mn

Reliance Retail in talks to buy Subway India for $200-250 mn

The 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

Reliance Retail aims for restaurant chain Subway Reliance Retail aims for restaurant chain Subway

Mukesh Ambani’s Reliance Retail seems to have set its eyes on the world’s largest single-brand restaurant chain Subway’s India franchise. 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.

Reliance Retail has forayed into a range of segments from grocery, e-pharmacy, payments to fashion and furniture. Quick service restaurants then seem to be right up its alley.

If the talks are successful then RIL will gain the network of 600-something Subway stores across the country, said a report in The Economic Times. RIL-Subway would intensify the competition that has players like Domino’s Pizza, Pizza Hut, Burger King, Starbucks etc.

The 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.

Subway appoints master franchise of ‘development agents’ who directly run clusters of stores or sub-franchise stores to smaller partners. Dabur promoter Amit Burman’s food retail company Lite Bite Foods is one such.

Subway is operated by Doctor’s Associates that does not own a single location but collects 8 per cent revenue from every franchise.

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