Daily Newsletter

28 November 2023

Daily Newsletter

28 November 2023

Subway India ends partnership with PepsiCo

The company will now sell Coca Cola’s products in its more than 570 outlets across the country.

Umesh Ellichipuram November 27 2023

Fast food restaurant company Subway has ended its partnership with PepsiCo India and partnered with Coca-Cola, ET Retail.com has reported.

Citing executives aware of the development, the news agency reported that Subway will now sell Coca-Cola’s soft drinks, juices, coffee, tea and water in its more than 570 outlets across India.

Subway India has initiated updating its online ordering app with Coca-Cola drinks on aggregator platforms such as Swiggy and Zomato.

A Coca-Cola spokesperson has confirmed the deal with Subway in an emailed response to ET's queries, stating, “We constantly join forces with different brands.”

Subway India and PepsiCo began their partnership in 2018.

Coca-Cola is currently partnered with restaurant brands such as McDonald's, Yum Brands-owned KFC, Pizza Hut and Taco Bell, which are operated in India by Devyani International, Sapphire Foods, and Burman Hospitality respectively.

PepsiCo India has partnered with Jubilant Foodworks, the master franchisee of Domino's Pizza in the country.

PepsiCo India vice-president George Kovoor stated in an emailed response to ET: “We continue to work with industry leaders in critical channels.”

In India, the Subway sandwich chain is operated by Culinary Brands, part of the private equity company Everstone Group.

Everstone Group also holds Indian operating franchise rights for Lavazza coffee and Fresh & Honest Cafés.

In July 2023, Subway stopped using tomatoes in its salads and sandwiches across some outlets in India following a sudden 400% price rise. The Indian government attributed the increase to a lean production season as monsoon rains disrupted transport and distribution networks.

Adoption of robotics in foodservice is at a nascent stage

The role of robotics is less sure-footed in the foodservice sector. Automating kitchens and meal service is less easily done with robots than automating warehouses and production lines, although this hasn’t deterred start-ups’ efforts to automate burger flipping and meal delivery with robots and drones. Robots improve profitability in the long term but have high up-front costs, so investing in robotics is not without risks.

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