Lebanon Businessnews News

Wooden Bakery franchise
extends to UAE and Qatar
$1.5 million franchise deal
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Wooden Bakery is planning to open two factories in the United Arab Emirates (UAE) and Qatar through franchise deals. Ghassan Bou Habib, Managing Partner at Wooden Bakery, said the company is preparing to sign contracts with two reputable firms in those countries.

The UAE plant will be located in Jabal Ali, with a total area over 10,000 square meters. Bou Habib said: “This location was chosen as a middle ground to cater for increasing demand in Abu Dhabi and Dubai.”

The cost of the UAE factory ranges between $7 million and $12 million. It will process between 70 and 100 tons of flour per day. Around ten points of sales will gradually be established across the UAE, supported by a distribution network. The branches will apply the Wooden Bakery concept, selling Lebanese pita bread, baguettes, and dairy products. They will also serve breakfast, lunch, and dinner.

Wooden Bakery sold the UAE franchise for $1.5 million. It will earn around four percent of yearly profits in royalty fees and another 2.5 percent in management fees.

The Wooden Bakery franchise in Qatar will have a relatively smaller factory and less distribution outlets, according to Bou Habib.

The Wooden Bakery brand and facilities are owned by founders Edouard Bou Habib and his two sons Ghassan and Assaad. The owners have also sold franchise rights to local partners, which will bring the total number of its local branches to 30 during 2013. Wooden Bakery seeks to expand its production capacity with a new factory in Chekka, scheduled to be up and running around end-2014.
Reported by Rania Ghanem
Date Posted: Jul 10, 2013
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