Restaurant franchise management company Yellow Tie Hospitality Management, has acquired casual dining brand Bombay Blue from Everstone Equity-owned Blue Foods for an undisclosed amount.
Yellow Tie Hospitality operates over 10 brands under exclusive licensing agreements for Genuine Broaster Chicken, UK’s Wrapchic and Just Falafel from Dubai. Everstone runs 130-plus outlets under the brands Spaghetti Kitchen, Copper Chimney, The Coffee Bean & Tea Leaf and Gelato Italiano.
Yellow Tie Hospitality has acquired intellectual property rights for Bombay Blue, founder Karan Tanna said.
“We will focus on tier-two and tier-three cities and hope to be operating 100 outlets of Bombay Blue by 2025 on a per-store investment of Rs 1.5 crore on backend infrastructure,” he said. He declined to comment on the size of the acquisition, which has been funded through internal accruals.
“Smaller markets are more profitable and scalable, with easier real estate costs; these markets will be our core focus areas,” Tanna said. The company will consider diluting stake to a private equity partner at a later stage, riding on a positive consumption outlook for the eating-out sector.
Yellow Tie Hospitality acquired controlling stakes in mid-tier QSR Umraan, Wok This Way and Health Juice Centre in mid-2018 under its incubator programme, for which it had allocated capital expenditure of Rs 25 crore.
Source: Economic Times