Kuwait’s Alghanim Industries will add more Wendy’s hamburger outlets across the Middle East and North Africa after acquiring all the chain’s restaurants in the UAE from the master franchise operator Alamar Foods.
Alghanim will take over the 18 outlets in the Emirates from Saudi-based Alamar then build and expand across the region, including in its home market of Kuwait, over the next decade, its chief executive said.
Alamar held the master franchise for Wendy’s for the Mena region except Saudi Arabia. Together with its franchises of Domino’s Pizza it operated 185 restaurants, according to the website of the Carlyle Group, one of Alamar’s investors.
Omar Alghanim said the Wendy’s deal represents a “significant step” in “its journey towards dominating” the F&B sector.
“We’re No 1 or 2 in the majority of the industries we operate in,” he said. “The F&B sector is one we haven’t dominated yet. But we want to build stronger ties at the consumer level.”
Alghanim already operates 30 businesses across sectors including industry, retail, logistics and oil & gas.
Mr Alghanim did not give further detail on the company’s growth plans for the chain. However, Wendy’s recently said that it and its franchise owners would open 80 new restaurants globally in 2015.
Darrell van Ligten, president, international at The Wendy’s Company said: “Alghanim Industries’ leadership, resources and experience with leading consumer-focused brands will be a tremendous asset as we work to build Wendy’s presence in key markets around the world.”
The Wendy’s Company has said it plans to sell 500 restaurants to franchisees this year as it looks to cut costs to support a long-term company makeover.
The maker of the square-patty burger has announced it will reduce its ownership of restaurants to just 5 per cent by 2016.
Globally, the challenge for Wendy’s, and other fast-food competitors like McDonald’s, has been the recent emergence of so-called “better-burger” brands.
Restaurants with a slightly higher price point, but a more sophisticated image, have been enjoying increasing popularity, while lower priced-point restaurants have been struggling.
Brands such as Shake Shack, FiveGuys and In-And-Out are fast becoming the go-to brands for burger hunters wanting a little more in the way of quality.
“Dining out has become a true social event for the people of the region. That’s something we want to focus on now,” Mr Alghanim said.
The Wendy’s deal will boost Alghanim’s 14,000 headcount in the Mena region.
business@thenational.ae
Follow The National's Business section on Twitter
