Alghanim Industries has signed a master franchise deal with the US-based hamburger chain Wendy’s to expand the brand in the Middle East.
Kuwait-based Alghanim acquired the rights to develop Wendy’s restaurants across the Middle East and Africa (MENA) region from Saudi-based Alamar Foods, a company owned by Al Jammaz Group and Carlyle Group.
The company did not disclose the value of the deal.
As part of the transaction, Alghanim has acquired all operational outlets in the UAE with plans to open additional stores in the MENA region over the next 10 years.
Part of the expansion will also include opening a number of Wendy’s stores in the company’s home market Kuwait, which has the highest consumption of fast food per capita in the MENA region.
“Alghanim Industries has a strong track-record of developing successful businesses with huge growth potential that meet the needs of the region’s expanding consumer base,” said Kutayba Yusuf Alghanim, chairman, Alghanim Industries.
“We remain committed to continued growth, by introducing leading food and beverage offerings, and enhancing the consumer experience in this attractive sector.”
Alghanim’s portfolio includes brands such as American Express, British Petroleum, Colgate-Palmolive, General Motors, Honda, Mars, Mondelez, Philips, Toshiba, Hitachi, and Whirlpool.
Among food and beverage brands, it clinched the deal to franchise Costa Coffee stores in Kuwait in 2013.
The GCC’s food retailing market is estimated to be worth more than Dhs560 billion by 2018, according to research firm Frost and Sullivan.
In line with such growth, many local firms have snapped up franchise agreements with international brands that are either looking to enter the market or are successfully established in the region.
Dubai-based Marka, which is planning to launch 50 new food and beverage brands to the UAE, recently said that it will open the region’s first Harper Bazaar Café in Dubai.
Another F&B firm Gourmet Gulf launched four new brands in the region last year including Brazilian fine dining restaurant Texas De Brazil, Asian restaurant chain Panda Express, Paris-based café Dalloyau and Azkadenya, a restaurant founded in Jordan.