Reliance Retail, the retail venture of Reliance Industries, is in talks with UK’s premium coffee and sandwich chain, Pret a Manger, for an exclusive franchise partnership, two people directly aware of the matter said. If formalised, this will pave the way for Reliance Retail’s entry to the fast-growing cafe and restaurant sector in India.
“This will be Reliance Retail’s second attempt to strike a deal with a large cafe-restaurant business. They want to rapidly escalate their presence across multiple consumer-facing sectors, amid a quick revival of the hospitality and travel sectors,” one of the people said.
Mukesh Ambani-owned Reliance had held talks last year to buy out sandwich chain Subway Inc’s India franchise rights, but those did not work out. Subway’s franchise rights were acquired by private equity group Everstone in late 2021.
In an emailed response to ET’s queries, a Reliance Retail spokesperson said: “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.”
An email sent to Pret A Manger’s media contact remained unanswered at press time on Thursday. Pret A Manger, which serves premium coffees, sandwiches, desserts, salads and breakfast meals, operates 550 stores globally, most of which are in the UK. The chain also operates stores in the US, France, Hong Kong and Dubai. In a statement posted on its website in September last year, Pret A Manger said its “next phase of transformation strategy is underway, including the goal of expanding into five new markets by the end of 2023”.
The company had said its expansion plans included doubling the size of its business within the next five years, backed by a new 100-million net investment.
The chain, which debuted in 1986, also said it was recovering from significant challenges of Covid-19. Its 2020 revenue had dropped 58% from the year-earlier to 299 million.
Reliance Retail has a standalone team to identify potential buyouts and tie-ups in the food and beverage spaces across various customer-facing segments including retail, hospitality and health. Last year, it roped in former Coca-Cola India chairman T Krishnakumar to lead the group’s consumer business.
Large players include homegrown Cafe Coffee Day, Tata group-operated Starbucks India, Costa Coffee operated by Devyani International, Barista and Canada-based premium chain Tim Hortons, operated by Restaurant Brands International Inc which also runs Burger King and Firehouse Subs globally.
