Al Masah Capital’s F&B unit buys Johnny Rockets franchisee
The private equity firm acquired Al Faris Restaurant, which operates the Johnny Rockets franchise in the UAE and Oman.
Diamond Lifestyle Limited, the food and beverage private equity unit of Al Masah Capital has acquired the UAE-based Al Faris Restaurant for an undisclosed sum.
Al Faris Restaurant is the company that owns and operates the franchise of California brand Johnny Rockets in Oman and the UAE.
The company launched the first Johnny Rockets restaurant in the UAE in 1996 in Jumeirah.
Currently, Al Faris operates about 14 Johnny Rockets restaurants in the UAE, of which eight are in Dubai, four are in Abu Dhabi and two are in Ras Al Khaimah.
“Owning a global and reputable brand such as Johnny Rockets enhances our strategic profile and provides our company with a concrete foundation to reap the benefits of the lucrative hamburger market in the region,” said Al Masah Capital founder and CEO Shailesh Dash.
The company did not specify if it will be further expanding the franchise in the UAE or moving to new locations.
According to a report from KPMG, the UAE’s F&B sector grew 5 per cent from 10.8bn in 2013 to $11.3bn in 2014. The market is estimated to reach $11.7bn this year and $13.2bn by 2018. Meanwhile the number of F&B outlets will increase by around 1,600 by 2019, KPMG noted.
A growing and relatively young population, high levels of affluence and increasing tourism are all boosting the industry, making it attractive to private equity investors.
Recently, Dubai-based retail and hospitality group Marka acquired Reem Al Bawadi restaurant chain for Dhs315m. Post the sale, Marka is planning to expand the brand across the GCC and MENA region.
In 2014, retail giant LuLu International Group’s F&B arm Tablez Food Company announced plans to invest Dhs55m in expanding South African restaurant chain Galito’s in the UAE as part of a franchise agreement.
The franchise agreement also mandates TFC to develop the Galito’s brand across the Middle East, India and Sri Lanka.
