Reds' cafés to kick off in Far East
MANCHESTER United is to harness its massive fan base in the Far East with a franchise deal that paves the way for at least 90 'Reds' branded cafés. Initially, restaurants are planned for Beijing and Singapore this summer, with further openings in Malaysia, Indonesia, Thailand, the Philippines, Hong Kong, Japan and India.
Man U has franchised the rights to FJ Benjamin Holdings, which already runs shops in the Far East selling Reds' products and memorabilia, and the Rowsley Company, which is owned by entrepreneur Peter Lim. The club has an option to buy 8% of the operating company, Manchester United Food & Beverage Concepts (MUFB). Man U chief executive Peter Kenyon said: 'Asia is a very important market for us as it offers us many growth opportunities. MUFB has developed a viable family dining concept.'
Man U is squeezing every last drop of income from its brand. Last month it signed up sportswear retailer JJB, which is to set up a Man U section in every JJB sportswear store in the country.
The cafés deal is for an initial ten years, during which 'a minimum of 90 restaurants will be opened'. There will be an option to renew when this target is met. MUFB is investing an initial S$2m (£750,000) in the concept.
