Mukesh Ambani’s Reliance seems to have set its eyes on the single-brand restaurant chain, Subway’s India franchise, suggest media reports. 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 now seem to be right up its alley. Media reports cited, if the talks are successful then RIL will gain the network of approximately 600 Subway stores across the country.
Reportedly, 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.
The food chain also appointed a 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.