Smart moveOCT 18, 2003
BreadTalk enters Mid-East market
By Nicholas Fang
TRANSPORT REPORTER
SINGAPORE-LISTED BreadTalk has made its first foray into the region where bread was invented and is a staple food - the Middle East.
The bakery chain announced yesterday the signing of a new master franchise agreement with Kuwait-based Al-Mejhem Global Group and said it plans to open about 30 outlets in six countries.
BreadTalk did not say how much the franchise agreement is worth but said that the deal will see its first outlet open in Kuwait next January.
The 30 outlets are expected to be opened in Kuwait, Bahrain, Qatar, Oman, Saudi Arabia and the United Arab Emirates in two to three years.
Al-Mejhem, a family-owned diversified food and beverage and real estate company, also owns the Singapore-based Coffee Club XPress franchise for Kuwait.
BreadTalk managing director George Quek said yesterday: 'After rigorous selection, Al-Mejhem was selected based on its proven track record of managing high-profile brands such as Coffee Club XPress in the Middle East market.
'Al-Mejhem satisfies our stringent qualification criteria, including having a strong network of contacts, firm financial standing and a sound marketing plan for growing the BreadTalk brand in the Middle East.'
BreadTalk launched its Indonesian master franchise in February and Mr Quek said that its first outlet in Jakarta had been very well received after it opened in April, with sales at least doubling those of the company's best Singapore outlet in Toa Payoh.
The company said that its latest deal in the Middle East is expected to make a positive contribution to its financial year ending Dec 31.
For the first half of the current financial year, the group said its franchising business contributed to 2.8 per cent of total revenue or 15.7 per cent of its revenue growth.
The company also said it is eyeing new markets such as Malaysia, the Philippines, Hong Kong, Taiwan, Thailand and Australia.
'Moreover, we are targeting to open two of our own BreadTalk outlets in Shanghai by the end of this year,' Mr Quek said.
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