Smart move
OCT 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.
Copyright @ 2003 Singapore Press Holdings. All rights reserved.