Further expanding its footprint in the fast-growing food and beverage business, Softlogic Holdings Group has taken over the global brand Subway’s franchise in Sri Lanka.
The move is via diversified blue chip’s fully owned subsidiary Softlogic Restaurants Ltd.
It has entered into a joint venture and management agreement last week for the development and operation of outlets operated previously by Subway Development Ltd., (the Subway franchise in Sri Lanka) and has taken over the existing Subway operations in Sri Lanka.
Subway is a single brand restaurant chain based in America and is a multinational fast food restaurant franchise that primarily sells submarine, sandwiches, wraps, salads and beverages.
Softlogic Restaurants Ltd. which operates within the retail sector of the Softlogic Group manages and operates international franchises including Burger King (22 outlets), Basking- Robbins (9 outlets), Popeyes (1 outlet), Delifrance (2 outlets) and Crystal Jade (1 outlet).
The transaction marks Softlogic Restaurants Ltd.'s foray of bringing the best and most diverse culinary experiences and quick service restaurants to satisfy local test buds across a wide mix of international restaurant chains to Sri Lanka.
In FY22, Softlogic added Popeyes, the world’s 2nd largest chicken restaurant.
It said through a portfolio of five restaurant brands, the sector is now aptly positioned to drive penetration across customer segments. “Our partnerships with leading brands have also enabled us to cater to changing customer needs including increased health consciousness and preference for natural products,” the Company’s Annual Report said, adding it will seek to extend its footprint with the opening of several new outlets in 2021/22.
Softlogic's retail business which includes Odel, Cotton Collection (branded apparel and fashion), mobile phones, consumer electronics, supermarkets and Suzuki Motorcycles, spare parts and accessories, accounts for 53% of Group revenue.
It reported a Rs. 43.5 billion revenue in FY22 and a Rs. 2.9 billion EBITDA. It ended the year with Rs. 2.6 billion loss due to the prolonged business disruptions.