Coffee Republic has signed a deal with a Turkish retail company to develop the chain in Turkey, the country that invented the coffee house, and said that it was also looking at markets in the Middle East and Central and Eastern Europe.

The coffee and deli bar operator, which ousted its founder, Bobby Hashemi, last year, said that the agreement with Ada Kahve Gida Sanayi ve Ticaret Limited Sirketi gives it the right to develop Coffee Republic delis and recruit franchisees to operate the delis in Turkey.

Britain's first coffee house was founded in the 17th century by members of London's Levant Company after seeing them in Turkey.

The first Turkish Coffee Republic is expected to open in Istanbul in July and up to five could be rolled out over the next two years, Simon Drysdale, the finance director said.

"It will start relatively slowly," he told Times Online. "We don't want to rush it through. I think it will be a handful over the next couple of years, around five."

He added that the chain planned to expand further internationally.

"We are talking to many different overseas partners," Mr Drysdale said. "We are looking at Middle Eastern markets and Central and Eastern European markets."

Hakan Tangulu, the co-founder of Ada, which has run several wholesale and retail businesses in Turkey for the past 20 years, said: "Even at this early stage we have identified a number of potential sites and anticipate that our first site will be opened in Istanbul in early July.

"This site will act as our flagship store and we anticipate it will be followed by more sites in the near future."

The agreement is Coffee Republic's second international franchise deal after Bulgaria.

Steven Bartlett, the new chief executive, who led a shareholder revolt to force out Mr Hashemi in October, said: "We have now completed two international franchise deals and continue to be impressed with the level of franchise interest for both domestic and international franchises.

"Accordingly, we anticipate further announcements over the coming months."

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