Brumby’s Bakeries will have stores opening across the Middle East after announcing it has signed up a master franchise in the region.
The 10-year agreement with consortium IIC Group covers member countries of the Gulf Co-Operation Council (GCC) – Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE) – as well as Iran.
Managing director Michael Sherlock says he expects the first stores to open in the Middle East in the 2006/07 financial year.
“Since signing an initial memorandum of understanding late last year we have been finalising our business plan and conducting extensive market research,” he says.
“It is clear that there is a tremendous potential in the Middle East and we expect to see considerable store growth during the next decade.
“Populations in the Middle East are young, with two thirds of the population under 25, with increasing demand for convenience foods.”
Sherlock says Brumby’s – which has 317 stores across Australia and New Zealand – will continue to investigate suitable opportunities in other countries.