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.