Americana Restaurants International PLC, the largest quick-service restaurant operator in the Middle East and North Africa, announced a major strategic move by adding the popular "Malik Al Taouk" (MAT) brand to its growing portfolio. This was achieved through two complementary transactions aimed at strengthening Americana's presence in the Arab quick-service restaurant sector and expanding MAT's regional reach.
Background on the main parties involved in the deal
Americana Restaurants, established in Kuwait in 1964, is a key player in the region's food and beverage sector, operating a vast network of over 2,000 restaurants for prestigious international brands such as KFC, Pizza Hut, Hardee's, and Krispy Kreme. With its extensive operational experience and robust supply chain, the company has successfully established itself as a market leader in 12 countries. Meanwhile, King of Taouk, a Lebanese restaurant chain founded in 1996, quickly gained popularity for its signature taouk sandwiches, becoming a leading name in the Lebanese fast-food sector. It has successfully expanded beyond Lebanon to key markets such as the UAE and Saudi Arabia.
Details of the strategic agreement
The deal includes two main parts; the first is the signing of a long-term exclusive franchise agreement extending for 75 years. Under this agreement, Americana Restaurants will have the exclusive rights to develop and operate King of Taouk restaurants in 13 strategic markets including the GCC countries, the Levant (Jordan and Lebanon), North Africa (Egypt and Morocco), as well as Kazakhstan in Central Asia.
The second part of the deal involves Americana acquiring 100% of the existing franchise rights for the "King of Shawarma" brand in both the United Arab Emirates (7 restaurants) and the Kingdom of Saudi Arabia (3 restaurants), for a total value of US$20.8 million. These branches generated annual revenues of approximately US$21.1 million and EBITDA of around US$2.3 million.
Importance and expected impact of the deal
This deal is of paramount strategic importance to both parties. For Americana Restaurants, this acquisition diversifies its portfolio, currently dominated by Western brands, by adding a strong, popular, and high-growth Arab brand, enabling it to target a new customer segment and better cater to local tastes. For Malak Al Tawouk, this partnership provides a significant boost to its rapid regional expansion, leveraging the infrastructure, operational expertise, and financial strength of a giant like Americana.
Regionally, this deal is expected to intensify competition in the quick-service restaurant market and encourage more successful local brands to expand beyond their borders. The completion of the transaction is currently subject to obtaining the necessary regulatory approvals and fulfilling the preconditions stipulated in the agreements.
