Egypt’s Supply Ministry Opens Carry On Outlets to Franchise Partnerships

Dr Sherif Farouk, Egypt’s Minister of Supply and Internal Trade, has invited private companies to help develop the ministry’s goods distribution network through arrangements including profit-sharing and franchising. The announcement came at the opening of the Egypt Retail Summit 2026, in remarks published by Al-Dawla portal and Dar Al-Hilal on 26 October 2026. The proposed partnerships would allow private-sector brands to appear alongside Carry On within the outlets.

An existing network of around 40,000 outlets

Farouk said the goods distribution network comprises around 40,000 outlets nationwide, including 1,060 operated by the Food Industries Holding Company and more than 30,000 grocers authorised to sell subsidised goods. He stressed that the ministry was open to various forms of collaboration with companies and brands to help develop this network.

These figures place the announcement in the context of making use of existing outlets, rather than simply opening new branches. The approach outlined by the minister would give brands access to consumers through consumer co-operatives and grocers selling subsidised goods, introducing partnership models within the goods distribution system.

The figure of 40,000 outlets describes the size of the network cited by the minister; it does not mean that all these outlets have already become franchised units. The announcement concerns opening up opportunities for collaboration and outlet development through several models, with franchising one of the options available.

This distinction matters for those assessing Egypt’s franchise market: the opportunity announced is the potential to expand across a large network. It is not an announcement that tens of thousands of branches of a single private-sector brand have opened, or that agreements covering the entire network have been signed.

Carry On alongside private-sector brands

The minister explained that the ministry is developing outlets belonging to the Food Industries Holding Company under the Carry On brand, as part of efforts to modernise goods distribution and improve services for the public. Alongside this, the partnership approach would allow private companies’ brands to appear within outlets alongside Carry On.

According to Farouk, this approach gives companies an opportunity to expand from dozens of branches to thousands of outlets, without limiting growth to new locations. This refers to the potential reach across the network described by the minister, not a confirmed number of branches already opened by any particular company.

The arrangements outlined by the minister include profit-sharing or applying a franchise model to grocers selling subsidised goods and consumer co-operatives. The proposed forms of collaboration should therefore not all be treated as identical franchise agreements: the remarks set out alternative partnership models rather than restricting company participation to a single structure.

For interested brands, the starting point highlighted by the announcement is the possibility of operating within existing distribution outlets where Carry On is also present. This differs from expansion based solely on adding standalone branded branches. The focus here is on helping to develop the ministry’s network and making products more widely available through it.

Traditional grocers remain part of the expansion equation

Farouk offered an estimate of the market breakdown, stating that major chains and brands account for around 25%, while traditional grocers account for roughly 75%. He linked this to the importance of broadening partnerships to include different retail operators, rather than limiting collaboration to large chains.

As presented by the minister, these proportions explain why traditional grocers feature in the proposed development approach. The announcement does not consider large brands in isolation from the existing shop network; instead, it links their expansion opportunities to collaboration with outlets that consumers already use for everyday purchases.

The 25% and 75% figures are not a measure of franchising’s share of the Egyptian market. The minister cited them to describe the split between major chains and brands on one side and traditional grocers on the other. For the franchise sector, their significance lies in explaining the context behind the ministry’s invitation to broaden its partnership base.

Farouk stressed that working with grocers and consumer co-operatives offers opportunities to improve service quality, provide products at affordable prices and make goods more readily available to the public. These are the objectives the ministry linked to involving private companies in developing the distribution system and supporting efforts to keep markets stable.

What does the announcement mean for the franchise sector?

The announcement offers an expansion route that brings together a ministry-run distribution network and private-sector brands, with more than one form of collaboration permitted. Its significance lies in the possibility of using existing outlets to reach a wider customer base while developing Carry On and improving service. It is not an announcement of a new private-sector brand entering Egypt.

Anyone considering participation should distinguish between the network’s total size and the scope of the opportunity available under a specific agreement, as well as between profit-sharing and franchising. How a brand would appear within an outlet alongside Carry On also deserves close attention when assessing whether the partnership suits its products and the way they are presented to consumers.

Practical takeaway: The announcement opens the door for the franchise sector to explore expansion through existing Ministry of Supply outlets. For interested brands, the priority is to confirm the partnership structure, the outlets covered and the operating responsibilities before building an expansion plan around the network’s total size.