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Atlanta Fast-Food Chains Make Inroads in Middle East
Monday, February 02, 2009 5:56 PM


(Source: The Atlanta Journal and Constitution)trackingBy Joe Guy Collier, The Atlanta Journal-Constitution

Feb. 2--While a recession has slowed overall U.S. restaurant growth, Atlanta food franchises are finding ample room for expansion in the Middle East.

Several Atlanta-based restaurant groups, such as AFC Enterprises, Church's Chicken and Focus Brands, continue to add outlets in the Middle East. Raving Brands and Petrus Brands, also based in Atlanta, see opportunity as they enter the region.

Although the United States has political tensions with some Mideast nations, the Atlanta franchises say their brands have been embraced by business partners and consumers.

U.S. fast-food chains -- known for consistently and quickly preparing meals -- are a good fit for the rapidly developing region, said Church's Chicken President and CEO Harsha Agadi.

Church's has 18 restaurants in four countries there. In 10 years, the chain could have 150 to 200 outlets in the region, Agadi said.

"What works in the Middle East is very easy: Be American," Agadi said. "What you're selling is 'Made in the USA.' The best thing America makes, in my opinion, is not cars, it's not planes, it's not computers. It's fast food."

Church's does have ties to the region. It's owned by Arcapita, a Bahrain investment bank that bought the brand in 2004 from Atlanta-based AFC Enterprises.

Church's, though, is far from alone in opening outlets in the region. A global slowdown and drop in gas prices has affected the Middle East, but the long-term projections remain favorable and businesses are still trying to catch up to what's been a phenomenal pace of growth.

The franchising industry in the Gulf Cooperation Council, a six-nation group, is growing at 25 percent a year, according to International Expo Consultants, organizers of the Franchising Middle East Exhibition trade show in Dubai.

Franchising is booming because it offers a quick and efficient way for local entrepreneurs to set up businesses, said Abdul Rehman Falaknaz, president of International Expo Consults. U.S. brands are appealing because nations in the region, such as the United Arab Emirates, have attracted transplants.

"The Middle East is home to a large number of expatriates, many of whom are familiar with American brands," Falaknaz said via e-mail. "Franchises such as Popeyes have instant appeal. Time is saved on establishing a brand identity and the business can expect to flourish once open."

Several well-known Atlanta-based brands have seen their numbers grow quickly after setting up their first outlets in the region.




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