First international franchise agreement calls for up to 50 units
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The parent to the Habit Burger Grill has signed its first international franchise agreement that will bring the fast-casual chain to the Middle East, the company said Wednesday.
The Habit Restaurants Inc. has signed an agreement with Food Quest Restaurant Management LLC for up to 50 Habit Burger units in six Middle Eastern countries over the next decade, including the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait and Oman. The first Middle Eastern location is expected to open in the UAE during the latter half of 2015.
Russ Bendel, The Habit’s chief executive, said the Irvine, Calif.-based chain will continue to grow primarily as a company-operated chain, but it will consider certain franchise and licensing partnerships for nontraditional locations, such as college campuses and airports.
An international push wasn’t necessarily in The Habit’s plans, but Food Quest proved to be a partner with the “right resources and the right commitment to the brand,” Bendel said.
Food Quest is the master franchise investor and operator of other non-U.S.-based food-and-beverage brands, including Gourmet Burger Kitchen, Zambar, Punjab Grill and Asia7. The company also provides management support to Advance Investment LLC to develop Denny’s restaurants across the Middle East.
Habit Burger joins a growing number of U.S.-based burger brands operating in or moving into the Middle East, including Shake Shack; Mooyah Burgers, Fries & Shakes; Steak ’n Shake; and Fatburger.
Bendel said he wasn’t concerned about the competition.
“Good companies are never afraid of competition,” he said. “We feel we stack up pretty nicely against other players. Obviously Food Quest is confident we’ll be a great partner for them there.”
Habit Burger, which has more than 100 units, expects to add 26 to 28 new company-operated restaurants in the U.S. in 2015, including its second unit in Northern New Jersey and locations in the Washington, D.C., area and Florida.
“For the next few years, we hope to see about 20 to 25 percent of new restaurants being in new markets, meaning the East Coast, and 75 to 80 percent of development in existing markets in the West, including California, Utah and Arizona,” Bendel said.
Habit Restaurants raised $90 million in an initial public offering in November, more than doubling its share price in opening day trading.
Contact Lisa Jennings at [email protected].
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