International Brands Are Coming To Georgia

International Brands Are Coming To Georgia

Over 30 franchise brands will be presented at the First International Franchise Exhibition BUYBRAND Transcaucasia, which will take place on 2-3 June 2017 in Tbilisi, Georgia.

Such catering brands as Shokoladnitsa, Baskin Robbins, Coffee House, Shikari, Il Patio, Papa John’s, as well as fitness-center chains FIT powered by X-BODY and Fit’n’Go, medical laboratory chains INVITRO and Gemotest, international hotel chain Best Western and others have already declared their interest in Transcaucasian market. The investments range of business concepts varies from 5 000$ to 600 000$.

Taking into consideration growing tourist’s flow to Georgia (the flow from Russia and EU into the region increases by 6-8% per year), it may be expected that in the nearest future the HoReCa franchising sector will be in the highest demand. The turnover in Georia’s catering segment is approximately $512 mln. Investments in the HoReCa sector may increase the income in Georgia by 20% per year.

According to the International Development Department Director of American hotel chain Best Western Karl de Lacy, the company is planning to open another 12-15 hotels in Georgia by franchising. The largest Russian private medical company INVITRO, having in operation more than 900 units in Russia, Ukraine, Kazakhstan and Belarus, is intended to open at least 17 medical centers in Georgia by 2020.

One of the world’s largest pizzeria chains Papa John’s is also interested in entering the Transcaucasian markets. Company’s representatives note that they are searching for partners willing to open at least 12 pizza restaurants in Georgia. World-wide known chain of ice-cream parlor Baskin Robbins is planning to develop a local chain in Georgia and to open about 20 cafés in Tbilisi, Batumi and Kobuleti.

According to Maksim Trubnikov, Area Manager at Shokoladnitsa Group, the capacity of the restaurant market in Armenia, Georgia and Azerbaijan allows for opening of 8-10 Coffee House and Shokoladnitsa cafes per year during the next 5-7 years. Cafes of such format with an average bill of $10 are extremely popular.

“Much attention is payed to small and medium-sized business in the Transcaucasian countries recently. At the same time, the idea of franchising business is quite new for the region. That is why an educational business forum is going to take place simultaneously with the Expo. It will help the entrepreneurs to understand ins and outs of franchising business», – notes Ekaterina Soyak, EMTG CEO, organizer of BUYBRAND Transcaucasia.

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