MANAMA: Bahrain's competitive coffee shop market is braced for another entrant after the UK-based Coffee Republic franchise announced its plans to open several outlets in the kingdom next year. Head of international business development Khurram Begg told GDN yesterday the firm was looking for suitable locations in Bahrain after signing a deal with the Sharjah-based franchising firm Paris Group.
He revealed that there could be up to 30 Coffee Republic outlets in the Middle East within the next year, as the company embarks on its largest international expansion plan.
Mr Begg revealed the firm was something of a late entrant to a growing market for international coffee chains in the Gulf.
"All of our major competitors are already here so we felt it was about time we got into the market.
"The reason for entering the Middle East is because research has shown that strategically that would be the place we would like to go first and then move on from there," he explained.
The deal with Paris Group - which already handles franchises for firms such as Armani and other international brands - covers Bahrain, Oman, Qatar and the UAE - and Mr Begg said more may follow as the firm makes a strong push into the region.
"We have very big plans. Bahrain, Oman, Qatar, and the UAE to start with, and then we have more countries in the process of signing up in the Middle East - so it is not the case we are just testing the ground, we are very certain.
"Certain other countries aren't onboard as we speak - but they could be onboard tomorrow.
"We have already tested the ground. We are very confident of our success, as we have a deli side to our business that sets us apart from our competitors," he explained.
Mr Begg said he did not anticipate having to change any of the company's existing business as it enters the Middle East market - but said certain products could be adapted as with other large international franchises.
He added that the region's "coffee culture" made it a natural choice for competing franchises.
"Even before any of our competitors or ourselves got there I think there is a culture of coffee. There are two main types of coffee beans and one is the Arabian coffee bean. So there is very much a coffee culture there already, and we are just part of the global coffee revolution really," he said.
He revealed the first Coffee Republic in the region would open in November in Muscat with other premises in Dubai and Bahrain following in the new year.
"Once the project is off the ground you will see rapid development and it will be right across the board," he said.
In the meantime the only problem thus far encountered by the company is finding suitable venues for its outlets.
"The problem is there are only so many good sites and it takes a while," Mr Begg said.
Once that challenge is solved the firm plans to expand at pace, he added.
"We have schedules that we hope to keep. Once we are up and running and things progress as we would like them I think within the next year we should have 20-30 coffee shops. It is quite ambitious, but I think the market is there."
msummers@gdn.com.bh
