Golden Chick Restaurants preparing to land in Pakistan

Published: August 11, 2015
Email
PHOTO: RESTAURANTNEWS

PHOTO: RESTAURANTNEWS

PHOTO: RESTAURANTNEWS The first outlet is expected to be operational by December 2015. PHOTO: AFP

KARACHI: An upcoming Pakistani food company has formally signed a franchise agreement with Texas-based Golden Chick Restaurants, a fast-food chain with a global presence.

Crescent Star Insurance, which is the 100% owner of the recently established Crescent Star Foods, said in a notice on Monday that its food subsidiary signed the agreement with the American company on August 7.

In its annual report, Crescent Star Insurance had hinted at making a long-term investment of Rs70 million in Crescent Star Foods.

Read: Crackdown on eateries

The company will roll out as many as 30 food outlets in the next 10 years in different cities of Pakistan. The first outlet is expected to be operational by December 2015.

While the project is likely to be commercially viable from the second year of operation, it is expected to start paying returns from the third year.

The board of directors of Crescent Star Insurance has also decided to make an investment into the subsidiary in the form of loans or advances of up to an aggregate sum of Rs10 million.

The objective is to earn income on the loans to be provided to Crescent Star Foods from time to time for working capital requirements. This will be paid back within three years from the date of disbursement. Crescent Star Insurance will receive mark up at the rate of 1.5% above its average borrowing cost.

Read: Eating out: The fault in our food

With an expanding middle class, the country’s fast-food market has grown in recent years. Many new entrants, like Burger King, Hardee’s, Johnny Rockets and Fat Burger, have grabbed a share from KFC and McDonald’s, two multinational players that have long dominated the fast-food segment in Pakistan.

Published in The Express Tribune, August 11th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

Reader Comments (8)

  • Rollin & Trollin
    Aug 11, 2015 - 7:59AM

    Who cares ! We have enuf chicken places already. More Mexican fare like Taco Bell, etc would be preferableRecommend

  • Karachite
    Aug 11, 2015 - 12:36PM

    Fast food is not healthy and is the main cause of obesity, diabetes and many other diseases. In the west it is called the junk food and mostly poor people who cannot afford a meal in restaurants eat at these places. Google search about it.
    Government should stop the mushrooming of these unhealthy places. Recommend

  • Mohammad Ali Siddiqui
    Aug 11, 2015 - 2:00PM

    Pakistani food dishes are most delicious dishes for majority of Pakistanis living in Pakistan and there is no comparison with any foreign food franchise.

    This is one of the reasons that all restaurants serving Pakistani dishes are seen full mostly during dinner time whereas there are hardly few guests seen seen in foreign food outlets.Recommend

  • Parvez
    Aug 11, 2015 - 3:23PM

    Is this part of the Sapphire Textiles Group ?Recommend

  • Khan
    Aug 11, 2015 - 10:47PM

    If the market can support it, then welcome! But I think the field is already quite crowded with all the other American fast food chains here. Recommend

  • Fawad
    Aug 12, 2015 - 3:36AM

    Just bring Al-Baik chicken to Karachi…thats good enuough for us. We don’t need KFC or Golden chicken franchises here.Recommend

  • Aug 12, 2015 - 6:38AM

    Who needs fried chicken when beautifully charcoal tandoor grilled Pakistani chicken is available. Even I go to Pakistani restaurants when I want good chicken.Recommend

  • Iqbal Aftab
    Aug 12, 2015 - 7:20AM

    Welcome to Pakistan & especially to Sialkot; We (Pakistanis) have very Big Hearts for everyone and again very Welcome.Recommend

More in Business