Saudi gourmet chain Bateel plans US, Europe expansions

After strengthening its presence throughout the GCC, Saudi-based gourmet food chain Bateel International is planning to tap into growing demand abroad and open its first boutique in the United States, as well as two new locations in Europe before the end of this year.

The new boutiques will be launched in Detroit, Michigan, and two unnamed European cities within the fourth quarter, Tina Memic, chief operating officer and general manager of retail at Bateel, told Argaam.

“We are entering with our gourmet boutique first, to develop the market and will then explore the opportunity for Café Bateel in the given markets,” Memic explained.

The new locations will add to Bateel’s network serving 14 countries across Africa, Europe, Asia and the Middle East.

It has been a busy year so far for Bateel International, which began its journey 25 years ago in the small Saudi village of Al Ghat.  The chain will open four new cafes and five new boutiques across Dammam, Jeddah and Madinah in 2016, followed by another five boutiques and cafes in the kingdom next year.

“The demand in KSA for Bateel is huge, our two cafes in Riyadh are the best performing cafes for Bateel International worldwide,” she said.

Bateel made its debut in Kuwait in April, and opened another boutique and café in the emirate of Ras Al Khaimah a few months later.

The company wrapped up a successful Ramadan and Eid season, a time when consumer spending increases and demand rises significantly for its dates.

“Ramadan is crucial for us, our sales during this period of the year quadruples, as we are the only retailer of gourmet dates in the region that can offer organic, halal dates,” Memic said.

Bateel, however, has broadened its offerings beyond date-products to include pastries, gourmet honey, and a Mediterranean-themed menu that Memic says have accounted for a much larger share of its sales in recent years.

The chain also witnessed a gradual increase in traffic and orders to its online store, as its name became more known.

“This is fundamental for clients abroad, who have visited us as tourists and wish to purchase in their home country, as we offer the service to ship our goods internationally,” she explained.

Yet, this rapid growth has also created a number of new challenges, including the need to open multiple locations at the same time, and maintain the same standards across branches.

As its brand expands globally, Bateel will also have to market itself and cater to new consumer groups abroad.

“Our expansion plans outside the GCC are very challenging, especially due to the fact that most consumers will for the first time be exposed to Bateel, while in the Middle East our brand recognition is quite high,” Memic said. “We are on a mission to make the date tomorrow’s banana.”

Write to Joumana Saad at joumana.saad@argaamplus.com