CRO Signs Five Restaurant Expansion in Kingdom of Saudi Arabia

DALLAS, Aug. 4 /PRNewswire/ -- Consolidated Restaurant Operations, Inc., which operates and franchises 117 full-service restaurants encompassing seven different brands, announced the signing of a five restaurant franchise agreement for El Chico Restaurants in the Kingdom of Saudi Arabia.

The Riyadh-based Safari Group, a top-twenty conglomerate in KSA will operate the El Chico franchise, and expects to open the first of two locations within one year.

Safari has recently formed Unique Hospitality Company (UHC), as a fully owned subsidiary of its holding company to achieve the vision of the Group's founder, Mr. Saleh Al Sagri to attain a leadership position in the restaurant landscape of the Kingdom of Saudi Arabia. UHC will be led by Mr. Talal Azhari, a veteran with 33 years experience in the operation and development of restaurants. The business plan aims to develop five restaurants across the Kingdom under the El Chico casual dining restaurant brand.

Mr. Ali Al Sagri stated "UHC is the latest addition to the Safari group and is a result of the Chairman's strategic decision of diversifying into specialized retail businesses that will stand out for their quality operation and unique products."

CRO currently operates and franchises restaurants in 12 states, United Kingdom United Arab Emirates and Egypt. Its brands range across the gourmet Mexican, casual Mexican and Steakhouse segments and also include Cantina Laredo, III Forks, Silver Fox, Good Eats, Luckys Cafe and Cool River Cafe. CRO had system-wide sales of $214 million in 2009.

"This agreement represents further significant expansion of the footprint of our brands and solidifies our global appeal," said John D. Harkey, Jr., Chief Executive Officer for CRO. CRO previously opened international El Chico restaurants in Dubai and Cairo.

The Middle East franchising market is a multi-billion dollar sector with strong growth potential. The region's multicultural population is also growing and bringing with it a hearty appetite for varied cuisine.

Mr. Harkey said U.S. franchise concepts such as those under the CRO umbrella have attracted international franchise partners for three main reasons: strong brand identification, sophisticated distribution networks and well-defined, proven operating systems. CRO has development agreements in place to build 170 restaurants over the next seven years. Mr. Harkey said the company is now considering further expansion into the Asian market.

SOURCE Consolidated Restaurant Operations, Inc