Saudi Arabia’s fast food chain Herfy delays franchise agreement with Nigeria’s Eat Rite
Saudi Arabia’s Herfy has delayed signing its agreement with Eat Rite Food Services to open branches in Nigeria.
The foodservice company said in a regulatory filing on Sunday (May 30) it is extending the 90-day non-binding memorandum of understanding it signed with Eat Rite on March 1 by another three months “for further studying”.
The agreement was to grant Eat Rite franchise rights to open 50 branches of Herfy restaurants in Nigeria over ten years at an average of five per year starting 2021.
The Saudi Arabian company aims to be present in the “Far East, GCC countries and Africa”.
The company operates its halal fast food restaurants as well as bakeries. It also has a meat processing business.
The fast food business operates in its home market as well as in Kuwait, and the company opened its first branch outside the Middle East in 2017 in Bangladesh.
It owns and operates around 350 restaurants.
The foodservice company posted a 1.46% year-on-year growth in net profit for January through March to reach 25.5 million riyals ($6.8 million).
Herfy is 49% owned by Saudi conglomerate Savola.
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