Audacia Capital, a newly established investment bank in Dubai, has acquired a 30% stake in Al Safadi, a popular chain of casual dining restaurants specializing in traditional Lebanese food, with ambitious plans to further expansion in the UAE and the GCC region.
The food and beverage sector in the region has witnessed one of the fastest growth rates over the last few years and is projected to continue this growth driven by rising population and higher consumer spending. Changing consumer habits, a young population and growing tourism has fueled the food service and retail segment in the GCC to experience a double-digit growth rates that led major homegrown brands and food concepts to capitalize on the growing appetite for dining out.
Al Safadi brand started in 1994 in Beirut and during the year 2000 decided to develop a casual dining concept in Dubai. Al Safadi Restaurants has grown to include two restaurants and one café in Dubai in addition to a restaurant in Erbil, Iraq, which opened for business in October 2013. Capitalizing on the booming food service sector in the region and specifically in Dubai, the company has an ambitious strategy for growth. Over the next three years, it plans to open further restaurants in Dubai and Abu Dhabi and to venture into the Kingdom of Saudi Arabia.
Emad Mansour, Founder and CEO, Audacia Capital said: “The acquisition of Al Safadi marks our first investment in the burgeoning food and beverage sector. Rapid urbanization, increase of a multicultural young population and rising incomes have led to a change in consumer consumption habits. Eating out has become a major attraction and food service outlets have become preferred destinations for business meetings and family gathering. As the MENA economies continue to boom there is a significant opportunity in the food service segment for further growth and innovation. Al Safadi is a well-established brand that has managed to capture a significant market share of the Lebanese casual dining segment in the UAE. The brand is well positioned to capitalize on the opportunities of the lucrative food service sector in the MENA region. Our aim is to drive the growth of Al Safadi and expand its geographical footprint.
Fadi Al-Safadi, CEO of Al Safadi Restaurants Company commented: “We welcome Audacia Capital as an equity partner. Our partnership with Audacia Capital comes at an opportune time as the foodservice sector in the MENA region, and specifically in UAE, is undergoing unprecedented growth. We have an ambitious growth strategy and are confident that in cooperation with Audacia Capital we will be able to successfully expand into the region and reinforce the Al Safadi brand.”
World Bank statistics indicate that the GCC population is likely to reach 52.8 million by 2020 whilst PWC projects that the GCC food service sector will grow by 50% to reach US 25bn by 2018. The food and beverage sector in the GCC will continue to be a lucrative market, and Audacia Capital intends to invest in well-managed and promising companies within this segment.