ETHIOPIA – A second group of franchised restaurants in Ethiopia will be established following an agreement signed between Spur Corporations, an internationally branded restaurant franchisor and a newly established Ethiopian company, Cucina Trading Plc.
The first was Chicken Hut Addis, a fast food franchise business with western exposure which opened in Addis Abeba. Each Chicken Hut Addis branch is independently owned and operated as its website indicates.
On April 14, 2015, at Hilton Hotel in Addis Abeba, Spur and Cucina signed the agreement which will bring three outlets with an initial start-up capital of 30 million Br.
Cucina Trading Plc. was established with a capital outlay of 15 million Br by Calibra Hospitality Business Plc. and Noah Real Estate.
“The agreement is to bring the branch standards and share their names, menu, and the market that they have built in the international market,” says Mulugeta Demissie, Cucina’s managing director.
“Their name will bring a market for us,” he added.
Cucina will manage the restaurants, according to Pierre van Tonder, chief executive officer (CEO) of Spur Corporations. Cucina plans to place the first restaurant – Spur Steak Ranches at Abyssinia Plaza, a new building owned by Noah Real Estate.
The second in the chain, which will be opened three months following the establishment of the first one, will be placed around Bole Medhanealem at the Abyssinia Building, which is also owned by Noah Real Estate,.
“We will bring our team and train the workers; we will also be here for a regular check up every six months to see the presentation, food, service and hospitality and recommend improvements,” Tonder told Fortune.
Before coming to this agreement, the Spur had conducted a market study which, according to Tonder, showed them that the Gross Domestic Product (GDP) growth and the growing consumer demand create a better market for them.
“Spur will give us the brands that they have and we will pay a royalty fee every year according to the agreement we signed,” said Yonas Moges, consultant at Calibra.
The royalty fee that Cucina is going to pay is five percent of its income and the restaurants are to be checked every time for their conformity with the standards, according to Tonder.
People from Spur will also be working with Cucina for three months to give support, according to Yonas.
Cucina plans to open seven outlets within the next seven years.
Spur has 506 outlets in Africa and Europe, of which 318 are Spur Steak Ranches, 79 Panarottis Pizza Pasta, 33 John Dory’s Fish, Grill and Sushi and 63 Captain DoRegos outlets, eight The Hussar Grill restaurants, and five Rocomamas restaurants.