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. 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.
