Healthy food route to wealth
Realising the saturation in the market with Burger, Pizza, and Chicken concept, Al Madani Group entered into a master franchise agreement with Charley's Grilled Subs, a popular QSR concept. In an interaction, Mohammed Al Madani, Chairman and CEO, Al Madani Group shares brand’s expansion plans in the region.
Namita Bhagat (NB): Brief us on the concept of ‘Charley's Grilled Subs’. What kind of agreement Al Madani Group of Companies has with the brand?
Mohammed Al Madani (MAM): Founded in 1986, Charley's Grilled Subs – The Phillycheese Steak Concept from Columbus, Ohio, USA is one of the world’s fastest growing quick service restaurant (QSR) concepts with presence in the US, UK, Canada, Germany, Japan, Korea and now the UAE. The brand entered into a master franchise agreement with Al Madani Group in the UAE. Further, we also have brand’s exclusive master franchisee rights for Saudi Arabia and Oman. As you all know that Charley's concept was built on grilling fresh meat right in front of the eyes of the customers. We use high end raw materials and maintain exceptional operation standards. Thus, the USP of Charley's Grilled Subs is ‘Eat Fresh, Eat Healthy’.
NB: What inspired you to team up with Charley’s? How did you decide on sub-franchising?
MAM: We were looking for a unique product that can be different from others. The market is saturated with Burger, Pizza, and Chicken concept and we wanted to introduce a new line of sandwich that suits the taste of our customers in the Middle East region. Well, before we started with the sub franchise models, we wanted to convince our parent company in US that we are capable of running, coaching, and supporting our sub franchisee's partners. Success does not come easy and needs a lot of following up and supports. Therefore, we first started with opening our own locations in order to prove that we are capable of running Charley's with high standards of service. We invested highly in the infrastructure and human resources in order to have a solid organisation.
NB: How many owned stores and franchisees do you have at present?
MAM: We currently have eight outlets that we own and operate. We also have two sub-franchised locations in Dubai, three sub-franchised in Abu Dhabi and two more in Al-Ain. We also have five outlets under construction in Dubai, Fujaira, and Abu Dhabi.
NB: Could you share the investment outlay required in terms of space and money from the franchisees’ end to partner with for both the brand in Middle East?
MAM: Charley's required a minimum of 50sq. m. space in a food court type and up to 80sq. m. with a dine-in area. The average investment varies between a location to another based on size and location. Therefore, total investment averages between 650,000 - 900,000 dhs. It usually takes around three month to open an outlet and get it ready for operation.
NB: What kind of training and support will be provided to the franchisees?
MAM: We provide our franchisees a complete support. From site selection, lease negotiation, design and construction, recruitment, equipment and products purchasing, marketing, comprehensive training, store opening, to a full support and follow up after opening as well.
NB: Could you share the expansion plans for Charley’s in the Middle East?
MAM: We have already signed with a group to develop Charley's brand in Oman. We also currently work with potential clients / partners to start the operation in KSA, Qatar, Jordan and Tunisia.
NB: How would you tackle the issue of competition from other international/local brands operating from your business space?
MAM: We strive to offer quality products that are valued for money. I also would like to mention that our products are always fresh and cooked upon order. That is one of the major difference among us and other fast food chains in the market. We also are in the hospitality industry therefore, on regular basis, we keep training our staff on how to provide our valued customers a good ‘customer service’.
