The US donut and coffee chain generated $90m revenues for the Kuwaiti multi-brand restaurant operator in 2022, but remains a relatively minor contributor to Americana Restaurant’s strong full-year sales
Krispy Kreme achieved 22% sales growth in 2022 to reach $90m | Photo credit: Americana Restaurants
Americana Restaurants has posted strong growth for its Krispy Kreme franchise in the Middle East, following the chain’s 2022 debut in Jordan and expansion across Egypt.
The Kuwait-based franchise operator said Krispy Kreme achieved 22% sales growth in the 12 months ended 31 December 2022 to reach $90m
Americana Restaurants opened 68 net new Krispy Kreme stores during the period to reach approximately 250 across its seven Middle Eastern markets.
Krispy Kreme recorded the highest sales growth of Americana Restaurants’ four ‘power brands’ but remains a relatively small contributor to the group’s overall sales, generating 4% of its total $2.38bn 2022 sales.
In comparison, fast-food chain KFC contributed 61% of the company’s revenues last year ($1.5bn), Hardee’s 17% ($403m) and Pizza Hut 11% ($264m).
In its first financial results since its concurrent dual listing on the Abu Dhabi Securities Exchange (ADX) and the Saudi Stock Exchange (Tadawul), Americana Restaurants reported profits of $536m, a 15% increase over 2021.
The franchise operator expects to open 300 net new stores across its leading brands annually over “the medium-term", including the roll-out of US coffee chain Peet’s Coffee.
Americana Restaurants was named the Middle Eastern franchise partner for the specialty coffee chain in August 2022 and opened its first Peet’s Coffee store in the Dubai Shopping Mall in January 2023.
The Kuwaiti multi-brand restaurant operator said it will expand the brand to new Gulf Cooperation Council (GCC) markets this year.
Discussing its portfolio of brands, Americana Restaurants added that ‘strong macroeconomic tailwinds, a growing youth population and soaring urbanisation’ will enable it to enter new markets across the MENA region and Kazakhstan in 2023.
“Americana Restaurants’ near-term focus will be to leverage the strength of its platform to increase the penetration of existing brands, enter new categories and expand geographically both organically and inorganically by entering new markets,” said Mohamed Ali Rashed Alabbar, Chairman, Americana Restaurants.
Americana Restaurants also counts Costa Coffee, Baskin Robbins, Wimpy and TGI Friday’s among its food and beverage portfolio. Collectively the four brands achieved 7% sales growth in 2022 to generate $166m.
Although individual brand breakdowns were not disclosed, Americana Restaurants opened 36 net new stores across the four food and beverage chains during the last 12 months.
Americana Restaurants became Costa Coffee’s franchise partner in 2004 and operates more than 70 stores across Egypt, Kazakhstan and Jordan.