Papa Ron's Pizza goes int'l

Yuli Tri Suwarni, The Jakarta Post, Bandung

Indonesian-based Italian restaurant chain Papa Ron's Pizza will go international next year with the opening of three outlets in Singapore, China and the United Arab Emirates, a company executive said on Monday.

Publicly listed PT Eatertainment International, the franchiser of the restaurant chain, said three investors from the three countries had signed memorandums of understanding (MOUs) to purchase franchise rights and open outlets in the countries.

Company director Ronald Mullers said the three outlets were among 20 new restaurants expected to open across Indonesia and abroad next year.

"The investors showed interest when they visited our stand at a Franchise Expo in Singapore last year. We followed it up and it ended with the signing of the MOUs," he said in Bandung during the opening of Papa Ron's 43rd outlet in the country.

According to the company, Papa Ron's franchise fee is US$25,000 for 10 years, during which the franchisee has to pay a profit share of 5 percent of sales value.

Papa Ron's, which first opened in 2000 and began franchising in 2002, now has 43 outlets in 15 cities across Indonesia, including 17 in Greater Jakarta, Mullers said.

He estimated that Indonesians spent an average of Rp 10 billion ($1.1 million) every month for pizza sold by six major restaurant chains in the country.