Reliance Retail, owned by Mukesh Ambani, appears to be eyeing the India franchise of the world’s largest single-brand restaurant chain, Subway. The retail giant is buying subway India for $200-250 million, or Rs 1,488-1,860 crore. This comes as the restaurant business, led by Chief Executive John Chidsey, is undergoing reorganization, intending to reduce expenses and worldwide staff as revenues decline.
Reliance Retail has ventured into a variety of industries, including groceries, e-pharmacy, payments, apparel, and furniture. Quick service restaurants, on the other hand, appear to be right in their wheelhouse.
According to a story in The Economic Times, if the discussions are successful, RIL will obtain a network of 600-plus Subway restaurants across the country. RIL-Subway would ratchet up the rivalry, including Domino’s Pizza, Pizza Hut, Burger King, and Starbucks.
In contrast to the present arrangement of regional master franchisees and individual networks, the global chain has been trying to simplify its India operation with a local partner. Several Indian Subway franchisees attempted to build a platform in 2017 and were in negotiations with investors for a buy-in.