Insta
Source: Restaurant India
Reliance Retail is likely to purchase the Subway Inc India franchise for a total cost of about Rs 1488-1860 crore, reports ET.
Under the leadership of chief executive John Chidsey, Subway Inc is going through a total restructuring process. Accordingly, the food chain is looking to cut its expenditures and workforce as its sales have reportedly deteriorated in recent times.
Subway has been pursuing tie-ups with single dominant local player in India in order to discontinue its present system of regional master franchises and individual networks.
As of now, the fast-food restaurant company acquires a master franchise of development agents. These agents are not the direct owners of these stores but are in-charge of their operations.
Subway’s parent association Doctor’s Associate does not own a single location but instead collects about 8 per cent of revenue from each franchisee.
Provided that the negotiations turn out to be successful, Reliance Retail will take over the entire network of around 600 Subway stores across the country.
Meanwhile, private equity players that have earlier delved into the food and beverages market have also been apprised of the opportunity to obtain the operations of Subway’s local franchisees.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest