Herfy Food Services Company which is one of renowned Saudi Arabia’s largest fast-food chains has decided to expand its operations. The company has signed an agreement with EatRite Food Services, giving it franchise rights to open up to 50 outlets in Nigeria.
“This agreement comes as a continuation to Herfy’s approach to becoming international, which is one of the pillars of the 2030 Vision announced by HRH The Crown Prince, Mohammed bin Salman, as the company is looking forward and working on being present in the Far East, GCC countries, and Africa,” the company stated on Sunday.
The two companies initially started a conversation in February this year. As per the Tadawul announcement, the franchise agreement will last for 10 years, with an average of 5 branches opening a year, commencing from 2021.
Herfy Food Services Company was established during 1981, and the first Herfy restaurant was inaugurated in Riyadh in 1981 itself. As of September 2020, the company owns around 40 restaurants and leases 345.
It is striving to improve the number of outlets it owns and leases in the Kingdom to 400 by the year-end.
In December 2017, Herfy initiated its first franchised branch outside of the Middle East in Bangladesh.
Herfy also aims to open 30 outlets within “a few years” as per an agreement signed with Bangladeshi private-sector company Greenland Services Ltd. in 2016,
The Food Service company reported net profit after Zakat and tax of SR25.5 million ($6.8 million) for the first fraction of 2021, an increase of 2 percent year-on-year, as per the Argaam website.
Its restaurant segment earned a gain of SR500,000 in the initial 3 months of this year, compared to declines in Q1 2020 and Q4 2020. The rebound was estimated to an 8 percent year-on-year jump in sales to SR252 million.