Homegrown coffee chain Figaro is set to expand to more countries in the Middle East after finalizing a deal with a Qatar-based international franchisee, which has committed to invest up to P480 million to develop a 40-store network across the Arabian region.
Figaro Coffee Systems Inc. recently signed a master franchise agreement with FBA Group, which targets to open 40 stores within 10 years in Qatar, Saudi Arabia, Kuwait, Bahrain and Oman.
FBA Group is a company based in Doha, Qatar, which is involved in real estate, construction, travel and tours, furniture, industrial products and trading businesses. The group is diversifying into the food and beverage business beginning with the Figaro franchise.
“For Qatar, we are considering three potential locations in the central business district. Area is between 100 to 200 square meters. The usual Figaro store design will be followed but we will also inject Arabic design influence,” Figaro’s franchise manager Mike Barret said.
Barret added that the Qatar franchisee was planning to open its first store in the first quarter of 2015. The target is to set up the first two stores in the first six months.
The international franchisee is estimated to invest around P10 to P12 million per store, including franchisee fees, construction and equipment. This suggests that the 40-store network planned for the next 10 years will require capital outlays of P400 to P480 million.
“This new addition to the increasing number of franchisees overseas is definitely in line with Figaro’s expansion and growth plans to penetrate the international market and the Middle East is one of the key areas prioritized by the company,” said Figaro spokesperson Annesy del Mundo.