Cinnabon Showing The Way
While Tripoli might not be the obvious market for an American bakery chain seeking strong growth, the success of Cinnabon in Libya demonstrates that companies can enter high-risk markets and do extremely well.
Cinnabon, which has one store operating under franchise in Tripoli, has been able to look past elevated political and security risk s to recognise the opportunities on offer in Libya . Indeed, while there is great inequality , there is also great spending power in relation to the wider region. In areas such as fast - food and baker y chains , the landscape is extremely fertile.
|Wealth Reflects Oil Strength|
|Libya - GDP Per Capita (US$) & Population (mn)|
Cinnabon has done really well in Tripoli with its one store. According to Randy Mercer, one of the international vice presidents of Focus Brands - the owner of Cinnabon - the chain's average unit volumes in Tripoli are three times the company's average. A few factors are behind the success of Cinnabon. First , it has a strong international presence , with about 900 stores worldwide , including in Algeria and Egypt. This give s it great experience in terms of serving countries with elevated risk factors . Second , its core focus on cinnamon rolls has proven very popular in North Africa , where sugary foods are very popular. F inally, in large Middle East and North African cities, such as Cairo , there is great demand for convenience and clean places for people to spend time and meet up. Shopping malls also are very popular , and once investment into development is kick - start ed , we are likely to see a lot more Cinnabons opening.