Food and beverage franchise management company Yellow Tie Hospitality has acquired casual dining brand Bombay Blue in an all-cash deal from private equity group Everstone Capital, Yellow Tie founder and CEO Karan Tanna told FE Online. Everstone Capital was the majority owner of Bombay Blue's Mumbai-based parent and organized retail restaurant company Pan India Food Solutions. Tanna, however, didn't disclose the deal value. "We have acquired Bombay Blue because of its intellectual property, standard operating procedures, great brand recall and brand image, and a good presence almost across India," said Tanna. We thought of leveraging all that as an opportunity to take the brand ahead, he added. Yellow Tie, said Tanna, will revamp the brand to make it more relevant to the competition and customers experience\u00a0and\u00a0then relaunch\u00a0it in a\u00a0fast-casual family dining format. The company also won't have to bear the risk of high customer acquisition cost since there is already\u00a0a great brand recall and reputation. The revamped Bombay Blue will be part of Yellow Tie's\u00a0incubation program, launched last year, that house quick-service restaurant brands\u00a0including\u00a0Umraan and Wok This Way. "Through the incubator, we acquired a majority stake in Wok\u00a0This Way and Umraan," said Tanna. The company would be looking at more such deals to promote concepts that have category leading potential, largely startups that can be governed through a franchising model. Tanna said that the expansion would be primarily in tier 2 and 3 cities because "We feel that the profitability aspect is better there with lower real estate cost and lesser competition than tier one markets." Yellow Tie also has fundraising raising plans for the year even\u00a0as it is looking to invest growth capital in the portfolio companies. "We want to be India's biggest incubator for scalable restaurants," said Tanna. The company would retain the existing employee strength at Bombay Blue. Yellow Tie current revenue stands at around $2.2 million excluding sales from its franchisee stores. The gross merchandise value from company-owned stores, said Tanna, is expected to scale from Rs 22 crore in FY18 to around Rs 35 crore for FY19.