Mukesh Ambani’s Reliance may acquire the Indian business of the world’s largest single-brand restaurant chain Subway. The company is in talks to buy Subway’s Indian business for Rs 1,488 to 1,860 crore.
Reliance Industries Limited, India’s largest company by market capitalization, may soon buy the Indian franchisee of the world’s largest single-brand restaurant chain Subway Inc. Reliance’s owner Mukesh Ambani is eyeing the Quick Service Restaurant (QSR) business. It is known that Subway is headquartered in Connecticut, USA, and India, the company does its business through several local master franchisees. It is now restructuring around the world.
After this deal, Reliance Retail will compete directly with Domino’s Pizza, Burger King, Pizza Hut, Starbucks, and their local partners Tata Group and Jubilant Group. At the same time, some private equity companies are also trying to buy local franchise operations of Subway. After this deal, the retail arm of Reliance Industries will get around 600 Subway stores across India. Subway wants to expand its business in India through a single partner.
Presently Subway is owned by Doctors Associates. This company takes eight percent of revenue from each franchisee.
Delhi-based Chetan Arora, Sachin Arora, Manpreet Gulari, Rishi Bajoria Gulpreet Gulari, and Rahul Bhalla are the principal development agents for Subway in India. The US-based restaurant operates stores through sub-franchisees, appointed by master franchisees.