Herfy Food Services Company signed a deal with EatRite Food Services Company for the commercial franchise rights to open 50 Herfy restaurants in Nigeria. Herfy Food Services Company (official website) is the Saudi Arabia’s largest fast-food chain.
The agreement holds a duration of 10 years from the date of signing the contract on 24 November 2021, according to a bourse filing on Wednesday.
The contract value is $300,000 in addition to the annual franchise revenue and opening fees of the facilities. Herfy plans to launch five restaurants every year.
The listed Saudi company is expected to witness a positive financial impact on the income statements of the fourth quarter (Q4) of 2021.
On Feb. 28, 2021, the company signed a MoU with Eat Rite Food Services, granting it franchise rights to open 50 Herfy restaurant branches in Nigeria.
Later on, the company extended its non-binding memorandum of understanding (MoU) with EatRite, last March.
The company was co-founded in 1981. In partnership with Panda United, the first Herfy restaurant opened in Riyadh, Saudi Arabia that same year. Looking to have better control over quality, the company decided to start making its own bread. Thus, Herfy Bakery came to life in 1982.
In 1994, Kingdom Holding took control of Panda United’s stake in the company. In 1998, Al Azizia Panda United was incorporated with the Savola Group. Since then, it has been operating in partnership with the Savola Group.
A series of administrative measures have transformed the company into a lean yet powerful organization. This has allowed it to pursue an aggressive expansion program and compete with the largest international brands operating in the fast food and food production market.
Through it all, the company has grown into the Saudi’s biggest fast food brand and the first fully-integrated food services company.
As of 2020, the company owns 40 restaurants and leases 345.