Esquires Coffee Houses NZ Signs Major Deal

Media Release

21 August 2008

Esquires Coffee Houses NZ Signs Major Middle East Deal

Middle Eastern coffee house habitués will soon be drinking beverages with New Zealand roots as the result of a deal struck between Esquires New Zealand Limited’s directors and Flamingo Restaurants and Catering Services LLC, a division of the Abu Dhabi-based Al Sayegh Brothers Group.

Around six months in the making, the deal provides Flamingo Restaurants and Catering Services LLC with the rights to operate Esquires Coffee Houses franchises in the Middle East and North Africa for ten years, with the right to renew.

With around 100 Esquires stores scheduled to open in the Middle East and North Africa Region over the next five years, the deal is the largest franchise agreement the Esquires brand has seen since it began operating in Canada in the early 1990’s and the fourth food and beverage franchise system for the progressive Al Sayegh Brothers Group.

Director, International Business Development, Esquires New Zealand’s, Stuart Deeks and his brother Lewis [the company’s operations director] brought Esquires to New Zealand in 2002. They have recently expanded the territory and now hold the exclusive rights to sell the Esquires franchise model throughout Africa, the Middle East and Asia.

Stuart Deeks said the deal is the next stage in the organisation’s strategy to become a major player in the competitive international cafe franchising market.

“The Middle East agreement follows on from our first international agreement in Fiji and is a major development in what will be a continuing focus on diversification into markets outside of the relatively small and highly competitive New Zealand market.”

“Clearly most markets around the world are suffering as a result of high oil prices, rising interest rates and inflationary pressures.

“The Middle East and Asia though while not untouched by a struggling global economy are still growing and developing at a spectacular rate in many cases, with billions of dollars of property, retail and infrastructure development currently underway.

“This impressive growth and the popularity of some Middle East cities, such as Dubai, make the market an excellent business proposition for our latest international expansion.”

The agreement will see Esquires supply the Middle East franchises with its New Zealand roasted Fairtrade organic coffee as well as New Zealand manufactured syrups, organic teas and a wide range of powders, providing the business with the opportunity to export and showcase New Zealand products across the region.

The first three Esquires stores are scheduled to open in Dubai this November.  There are currently approximately 100 Esquires Coffee Houses worldwide with 38 Esquires Coffee Houses in New Zealand and 4 in Fiji.

While continuing with a controlled local expansion strategy, the company is currently working to conclude five more substantial international agreements this financial year and hopes to make further announcements during the coming months.

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