Reliance may buy Subway India franchise for $200-250 million
According to a report in ET, Subway has been looking to streamline its India business by collaborating with local partners to do away with the current regional master franchisees and individual networks.
Currently, the food chain takes on a master franchise of ‘development agents’ who run these clusters of stores but do not directly own these stores.
On being contacted to few DA of Subway, Restaurant India couldn’t get a proper revert and the spokesperson from different subway franchise unit regretted to comment anything on it and directed to speak to the Subway India team.
Ranjit Talwar, Country Director, South Asia who also manages India operation of the sandwich chain declined to comment on the buyout.
“We are not authorized to share any information regarding our franchisee or any franchise deal,” said Talwar by adding that we don’t share it with anyone and that’s something which is against brand’s policy.
Globally, Subway is going through a massive transformation under chief executive John Chidsey and is trying to cut costs and reduce headcount as sales have taken hit, added reports.
In May, it was in news that Subway is focusing on US market and is hiring 40,000 employees in 30 days across the country.
Subway is also focusing a lot on digital transformation and has appointed Donagh Herlihy as new Global Chief Digital and Information Officer. In this role, Herlihy is responsible for overseeing the company’s global technology teams and initiatives to deliver modern, timely and effective platforms for Subway franchisees and guests.
On the other hand, Reliance Retail had reported Rs 962 net profit for the first quarter (Q1) of FY22, a jump of 123 percent year-on-year (YoY) as compared to Rs 431 crore reported in the corresponding period of the previous fiscal.
Today, it is present across multiple verticals including; grocery, consumer electronics, fashion and lifestyle and luxury. Reliance Fresh, SMART, Reliance Digital, Trends, Reliance Jewels, Project Eve, Hamleys are some of the brands in its portfolio.
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