Herfy’s restaurants sales hit historical high in March, overseas franchise talks ongoing: CEO

Herfy Food Services Co.’s restaurants segment reported the highest historical sales in 40 years in March, reaching SAR 124 million, CEO Ahmed Hamad Al-Said told Argaam in an exclusive. 

The Saudi-listed firm was able to achieve these results despite the precautionary measures, which included closing restaurants in commercial malls and limiting service in some restaurants to home delivery. 

Herfy has 70 restaurants across the commercial malls, he highlighted. 

On the bakery and meat industries segment, the company registered record sales in March, as well as Q1 2021, which contributed in boosting the financial results.

Al-Said pointed out that Herfy is in talks with investors from Qatar, Uzbekistan and Iraq to grant them franchises to open Herfy restaurants and sell their meat and baked products.

The expansion activities outside the Kingdom through franchises will have a remarkable impact on the company’s financials, the CEO said.

“We recently opened the fifth branch of Herfy restaurants in Bangladesh and expect to reach 10 branches within two years.”

Furthermore, Herfy signed a memorandum of understanding (MoU) to open 50 restaurants in Nigeria. The company is significantly increasing exports of baked goods and meat to Yemen and Jordan, Al-Said concluded.

According to data compiled by Argaam, Herfy Food reported a net profit after Zakat and tax of SAR 25.5 million for the first quarter of 2021, an increase of 2%, from SAR 25.1 million in the same period last year.