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Johannesburg - JSE-listed retailer Famous Brands [JSE:FBR] on Wednesday admitted that its footmark in North Africa and the Middle East is tiny but its growth prospects there are huge.
Famous Brands Africa managing executive Mark Hedderwick made these comments as the South African retailer signed a master licence agreement with Xcelium, a Lebanon-based food services business.
The agreement gave Xcelium the right to be Famous Brands’ agent in Saudi Arabia, Lebanon, Morocco, Iran and Egypt.
Xcelium would also manage these operations for a fee in place of Famous Brands and use Famous Brands’ human capital and business systems.
A master licence agreement allows parties to negotiate future deals because they can rely on the terms of the initial master agreement.
Famous Brands said the agreement applied to its eateries, which include Steers, Wimpy and Debonairs Pizza in all these countries. Mugg & Bean applied only to Morocco and Egypt.
The agreement also includes a rapid roll-out strategy which will pay more attention to opening 38 eateries in Saudi Arabia, Lebanon, Egypt, Morocco, Iran and Egypt in the next five years.
The agreement would also launch a robust platform for Famous Brands’ businesses to grow in the Middle East and North Africa.
"Our current footprint in the Middle East and North Africa is small, comprising three Debonairs Pizza restaurants in Dubai, four in Sudan, as well as one Steers restaurant," Hedderwick said.
He added that prospects to increase outlets in these regions were greatly boosted by the company’s partnership with Xcelium.
- Fin24
Famous Brands Africa managing executive Mark Hedderwick made these comments as the South African retailer signed a master licence agreement with Xcelium, a Lebanon-based food services business.
The agreement gave Xcelium the right to be Famous Brands’ agent in Saudi Arabia, Lebanon, Morocco, Iran and Egypt.
Xcelium would also manage these operations for a fee in place of Famous Brands and use Famous Brands’ human capital and business systems.
A master licence agreement allows parties to negotiate future deals because they can rely on the terms of the initial master agreement.
Famous Brands said the agreement applied to its eateries, which include Steers, Wimpy and Debonairs Pizza in all these countries. Mugg & Bean applied only to Morocco and Egypt.
The agreement also includes a rapid roll-out strategy which will pay more attention to opening 38 eateries in Saudi Arabia, Lebanon, Egypt, Morocco, Iran and Egypt in the next five years.
The agreement would also launch a robust platform for Famous Brands’ businesses to grow in the Middle East and North Africa.
"Our current footprint in the Middle East and North Africa is small, comprising three Debonairs Pizza restaurants in Dubai, four in Sudan, as well as one Steers restaurant," Hedderwick said.
He added that prospects to increase outlets in these regions were greatly boosted by the company’s partnership with Xcelium.
- Fin24
