Reliance Retail is in talks to buy the India franchise of single-brand restaurant chain Subway in a deal that could be valued around Rs 1,488-1,860 crore, according to a report by The Economic Times.
If the deal goes through, Reliance Retail will get an intensive network of over 600 Subway stores across India, taking on tough competition from other quick-service restaurants including Domino's Pizza, Burger King, Starbucks and McDonald's among others.
Mukesh Ambani's Reliance Retail has ventured into many segments including grocery, consumer electronics, fashion and lifestyle. Reliance Fresh, SMART, Reliance Digital, Trends, Reliance Jewels, Project Eve, Hamleys are some of its brands.
Subway is going through an overhaul under Chief Executive John Chidsey as he looks to cut costs in view of the dipping global sales. The company is looking for local companies to partner with to run their India business as against their system of regional master franchises, the report said.