Darden inks deal with Kuwait’s Americana for Mid-East restaurant chain

Darden Restaurants, the US-based owner of the Red Lobster and Olive Garden brands, is to move into the Middle East market after inking a deal with Kuwait’s Americana Group to run 60 restaurants there. Under the terms of the deal, Americana Group will establish and operate Darden's Red Lobster, Olive Garden and LongHorn Steakhouse brands in the region. The Kuwait firm, whose franchise portfolio includes fast food brands Pizza Hut, Krispy Kreme and Hardee’s, will initially create at least 60 restaurants over the next five years in Bahrain, Egypt, Kuwait, Lebanon, Qatar, Saudi Arabia and the UAE. Terms of the multiunit deal were not disclosed. "The Middle East is an attractive, growing market that has shown a strong affinity for American brands, especially American dining brands," Darden chairman and CEO Clarence Otis said in a statement. Marzouk Al Kharafi, chairman of Americana Group, said the deal was a response to increasing demand for casual dining brands across the Middle East. The publicly traded firm currently operates more than 1,200 restaurants across the region. Headquartered in Orlando, Darden operates 1,800 restaurants in the United States and Canada and claims to generate more than $7bn in annual sales. In September, the company reported that its first-quarter net income climbed 19 percent as revenue rose at its restaurants.

United States of America · 19 Oct 2010

Linked: Red Lobster · LongHorn Steakhouse