CRO Signs 75 Restaurant Expansion in Middle East
Agreement Includes El Chico Cafe, Cantina Laredo and III Forks Steakhouse Brands
Consolidated Restaurant Operations, Inc., which operates and franchises 140 full-service and casual dining restaurants encompassing eight different brands, has executed a 75 restaurant franchise agreement spanning 13 countries.
The United Arab Emirates-based Saleh Bin Lahej Group of companies, which has a strong track record and solid reputation in the food and restaurant industry, will operate CRO's El Chico Cafe, Cantina Laredo and III Forks Steakhouse brands.
Headquartered in Dubai, the Saleh Bin Lahej Group will open 37 El Chico Cafe locations, 20 Cantina Laredo restaurants and 18 III Forks Steakhouses in countries such as UAE, Bahrain, Qatar, Oman, Saudi Arabia, Egypt, Brunei and Kuwait.
CRO operates restaurants in 18 states and Canada. Its brands range across the Mexican, Italian, American Grill and Steakhouse segments and also include The Spaghetti Warehouse, Good Eats, Luckys Cafe, Silver Fox Steakhouse and Cool River Cafe. CRO had system-wide sales of $265 million in 2005.
"This agreement represents the beginning of significant global expansion of the footprint of our brands. It validates our global appeal," said John D. Harkey, Jr., Chief Executive Officer for CRO. In June CRO will open a Cantina Laredo in Cairo, Egypt, the first of a previously executed five-unit franchise development agreement.
El Chico Cafe is CRO's largest brand with 81 locations and 2005 sales of $124 million. Founded in 1940, it was one of the first Tex-Mex chains in the United States. Cantina Laredo, which features gourmet Mexican cuisine in an upscale atmosphere, has 14 U.S. locations, primarily in Texas.
The Middle East franchising market is a multi-billion sector with strong growth potential. The region's multicultural population is also growing and bringing with it a hearty appetite for varied cuisine.
"Both CRO and the Saleh Bin Lahej Group believe our Mexican cuisine will be extremely popular in these countries," said Gene Street, CRO's Chairman.
III Forks represents the ultimate in Texas French cuisine. With a flagship location in North Dallas, III Forks features 25,000 square feet of elegant spaces and features a dining experience like no other. It is Texas's best-known, highest-grossing USDA Prime beef steakhouse. Two additional U.S. locations will open in 2006 in Austin, Texas and Palm Beach Gardens, Fla.
"The fact that the III Forks brand was included in our relationship with the Saleh Bin Lahej Group certainly speaks to our global appeal," said CRO Vice Chairman John Cracken. "The appetite for quality beef, especially USDA Prime Beef, is extremely high in the Middle East."
Harkey said U.S. franchise concepts such as those under the CRO umbrella have attracted international investors for three main reasons: strong brand identification, sophisticated distribution networks and well-defined, proven operating systems. Harkey said the company is considering further expansion in the Middle East and entry into the Asian market.
El Chico Cafe and Cantina Laredo have a distinct appeal because they offer investors the opportunity to own and operate two different concepts in the Mexican food market with both drawing on the same resources and expertise of CRO.
The United Arab Emirates-based Saleh Bin Lahej Group of companies, which has a strong track record and solid reputation in the food and restaurant industry, will operate CRO's El Chico Cafe, Cantina Laredo and III Forks Steakhouse brands.
Headquartered in Dubai, the Saleh Bin Lahej Group will open 37 El Chico Cafe locations, 20 Cantina Laredo restaurants and 18 III Forks Steakhouses in countries such as UAE, Bahrain, Qatar, Oman, Saudi Arabia, Egypt, Brunei and Kuwait.
CRO operates restaurants in 18 states and Canada. Its brands range across the Mexican, Italian, American Grill and Steakhouse segments and also include The Spaghetti Warehouse, Good Eats, Luckys Cafe, Silver Fox Steakhouse and Cool River Cafe. CRO had system-wide sales of $265 million in 2005.
"This agreement represents the beginning of significant global expansion of the footprint of our brands. It validates our global appeal," said John D. Harkey, Jr., Chief Executive Officer for CRO. In June CRO will open a Cantina Laredo in Cairo, Egypt, the first of a previously executed five-unit franchise development agreement.
El Chico Cafe is CRO's largest brand with 81 locations and 2005 sales of $124 million. Founded in 1940, it was one of the first Tex-Mex chains in the United States. Cantina Laredo, which features gourmet Mexican cuisine in an upscale atmosphere, has 14 U.S. locations, primarily in Texas.
The Middle East franchising market is a multi-billion sector with strong growth potential. The region's multicultural population is also growing and bringing with it a hearty appetite for varied cuisine.
"Both CRO and the Saleh Bin Lahej Group believe our Mexican cuisine will be extremely popular in these countries," said Gene Street, CRO's Chairman.
III Forks represents the ultimate in Texas French cuisine. With a flagship location in North Dallas, III Forks features 25,000 square feet of elegant spaces and features a dining experience like no other. It is Texas's best-known, highest-grossing USDA Prime beef steakhouse. Two additional U.S. locations will open in 2006 in Austin, Texas and Palm Beach Gardens, Fla.
"The fact that the III Forks brand was included in our relationship with the Saleh Bin Lahej Group certainly speaks to our global appeal," said CRO Vice Chairman John Cracken. "The appetite for quality beef, especially USDA Prime Beef, is extremely high in the Middle East."
Harkey said U.S. franchise concepts such as those under the CRO umbrella have attracted international investors for three main reasons: strong brand identification, sophisticated distribution networks and well-defined, proven operating systems. Harkey said the company is considering further expansion in the Middle East and entry into the Asian market.
El Chico Cafe and Cantina Laredo have a distinct appeal because they offer investors the opportunity to own and operate two different concepts in the Mexican food market with both drawing on the same resources and expertise of CRO.
