In the single brand restaurant business, Reliance is planning to expand through its retail segment. At present, Reliance Retail is doing good business in the grocery business, consumer electronics, fashion and lifestyle.
Now preparing to enter another new business
After petrochemical, chemical, digital, grocery, fashion, furniture, retail, now Mukesh Ambani is preparing to enter the business of service restaurant. For this, Mukesh Ambani’s company Reliance Industries is preparing to buy the Indian franchise of the world’s largest restaurant chain company Subway Inc. It is believed that this deal can be done for Rs.1488 crore to Rs.1860 crore.
If this deal of Reliance is finalized, then it will be from Tata Group’s Starbucks and Jubilant Group. At the same time, players like Domino’s Pizza, Burger King, already present in the market in this segment, are also likely to get a tough competition.
Works on franchise business model
Actually Subway Inc. is America’s largest single brand restaurant chain company. This company works on the franchise model in India. According to the Times of India report, after the completion of this deal, the retail unit of Reliance Industries will get about 600 Subway stores across India. The company is planning to expand its footprint in this segment under its retail business. Subway started its operations in India in the year 2001. Talking about QSR revenue, Subway had a market share of around 6 per cent in this segment.
Expansion through Reliance Retail
In the single brand restaurant business, Reliance is planning to expand through its retail segment. At present, Reliance Retail is doing good business in the grocery business, consumer electronics, fashion and lifestyle. Now in this episode, under the next expansion, the plan to buy Subway’s franchise is being worked out.
Now they have subway franchise
As a Subway franchisee, Light Bite Foods, a company owned by Amit Burman of Dabur, currently manages Subway. However, it is owned by Doctors Associations, which takes around 8 per cent revenue on each franchisee. The business of this segment in India is around Rs 18000 crore. Domino’s is currently the market leader in this segment with a 21 per cent share. On the other hand, McDonald’s remains at number two with an 11 percent stake.
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