UK-based specialty coffee chain Black Sheep Coffee has reportedly signed a franchise agreement to launch in the Middle East market, starting with a store in Dubai, UAE, by the end of 2022.
According to Propel, Black Sheep plans to open 250 stores across the Middle East within 15 years as part of the 30-year franchise deal.
Black Sheep Coffee currently operates 66 stores, including two outlets in the Philippines and one in France. The coffee chain is also set to open its first store in the US with an outlet in Dallas.
According to the specialty chain’s website, a further 16 stores are slated to open in the UK soon.
Black Sheep recently posted 89.7% first quarter sales growth to £8.27m ($10.4m), up from £4.36m ($5.5m) for the same period in 2022.
In a statement, Black Sheep Coffee said it was pressing ahead with ‘unique opportunities’ and would ‘double down for growth’ despite record inflation in the UK, high energy prices and the price of coffee and milk rising 16% and 50% respectively.
Middle East expansion could prove a savvy move for Black Sheep. World Coffee Portal data shows the market grew 10.5% by outlets in 2022, with international brands and domestic operators alike expanding apace and specialty coffee gaining significant traction, particularly in the UAE, Saudi Arabia and Kuwait.