Hotbrands International sets out strategy for Saudi Arabia

Dubai-based Hotbrands International has signed a joint venture with Saudi Arabia-based Al Sawani Group to open 50 new outlets in the Kingdom within the next 18 months.

Hotbrands Saudi Arabia will hold the franchise rights to operate the company's restaurant concepts, rolling them out in Riyadh, Jeddah, Madinnah, Dammam, Khobar, Al Ehsa and Al Rabwa, with 12 expected to open by November this year.

Avinash Bal, vice chairman and CEO of Hotbrands International, said the partnership would enable the quick service and casual dining operator to be "more responsive to the changing dynamics and needs of a massive market like Saudi Arabia."

Al Sawani Group currently holds the exclusive distribution rights to brands including Esprit, United Colours of Benetton, Replay and G2000 across 14 countries in the Middle East.

Bal said Hotbrands International - which currently sells approximately four million meals annually - is targeting the middle mass market with its price ranges, with its quick service meals typically costing AED 40 (US $11), and casual dining meals around AED 70 ($19).

He also revealed that the company has received a plethora of enquiries from the UK, while expansion of all of its concepts into China is definitely on the cards. Staff shortages currently ranks as the greatest challenge, he said, predicting that Burma and Indonesia would emerge as the most lucrative source markets for employees in the next three years.

He also emphasised the need for local employees in regional markets, having undertaken a strong recruitment drive in Oman.

"The attitude in society has to match that drive, particularly as staff from India and the Philippines will no longer be attracted to relocate here for positions in the coming years," he said.

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