PizzaExpress takes charge of UAE franchise operation as it plans expansion

PizzaExpress, the UK-based chain, has taken control of its franchise operation in the UAE in its bid to expand in the region.

At the moment, the pizzeria has six outlets across the country and will open a seventh this summer in Abu Dhabi’s World Trade Centre Mall.

The capital’s pizzeria will be a Jazz@PizzaExpress concept, building on its success in Dubai as a live music venue.

“This acquisition builds on our strategy to grow PizzaExpress into a truly global brand, and I’m delighted to bring our UAE operation into the core PizzaExpress estate,” said Luke Davies, the managing director of PizzaExpress International.

“We plan to invest further in the UAE over the next five years as we double the number of PizzaExpress sites across the region. ”

About 19,000 extra food and beverage (F&B) outlets are expected in the UAE by 2019, according to Euromonitor International.

Mall of the Emirates is planning to add 12 F&B outlets this summer as part of the second phase of its Dh1 billion redevelopment project.

Other pizza restaurants are also looking to grow their operations. Russo’s, the New York based-pizza company that has four outlets in the country, plans to open two more this year.

“We are exceptionally proud of our achievements since bringing this brand to the UAE,” said Layal Chemaitelly, the corporate marketing manager of Russo’s New York Pizzeria. “We have seen rapid expansion because there is such high demand for genuine Italian cuisine in the UAE. We are opening two new restaurants this year, one in The Greens in Dubai and the other is hush-hush for the moment.”

Another pizza franchise in the UAE recently altered its franchising arrangements when NKD Pizza became Freedom Pizza.

The franchise owners ended their agreement with NKD Pizza and took over the operation with more than 250 staff and 127 delivery workers.

The chain already has five outlets in Dubai with a sixth expected shortly in Abu Dhabi.

The new owners, Ian Ohan and Robbie Vitrano, said they have created a made in the UAE brand with an ambition to go global.

NKD Pizza said that since its had ended its agreement with its previous franchise operators, its pizzas would be unavailable for a short period. “We will be back very shortly with new authentic NKD Pizza outlets, and the dedicated service you have come to expect from us,” NKD Pizza said.

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The specs

Engine: 3.8-litre, twin-turbo V8

Transmission: seven-speed automatic

Power: 592bhp

Torque: 620Nm

Price: Dh980,000

On sale: now

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

THE SPECS

Engine: 4.4-litre V8

Transmission: Automatic

Power: 530bhp

Torque: 750Nm

Price: Dh535,000

On sale: Now

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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.

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The bio

Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district

Was a middle distance state athletics champion in school

Enjoys driving to Fujairah and Ras Al Khaimah with family

His dream is to continue working as a social worker and help people

Has seven diaries in which he has jotted down notes about his work and money he earned

Keeps the diaries in his car to remember his journey in the Emirates