Growing demand
“We have seven to 10 requests every day through online channels and through the PR campaign that we’re running,” explains Mohamed Bitar of the interest shown in the Just Falafel brand.
Positioning the franchise opportunity as an affordable business venture could well explain the number of enquiries, and at approximately US$120,000 to $140,000 to take on your own store, it’s not a venture that is capital intensive.
However, Bitar is not resting on his laurels, and will also be exhibiting at the Franchising Middle East Exhibition 2011, in order to attract more potential partners to Just Falafel.
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Similarly, Jumeirah Restaurants will be exhibiting at both The Franchise Show in London and The Franchise Expo in Paris as part of its major business development strategy for entering key European markets, especially the UK.
“We have a lot of interest already in people taking the franchise from us. I think it’s really important for such a key strategic market that we build a relationship with the right operator who has food and beverage experience and who has an ability to do a roll out programme across the UK market, because it is a 150-store potential market on its own and the British consumer is already fascinated by Asian cuisine — I think that The Noodle House will fit very well,” reports Broad.
Growth is also predicted for the brands that have entered the region from overseas via franchising. Tiffinbites has two outlets successfully operating in Dubai and an expansion plan to open 11 outlets by 2014.
“We made sure to implement the franchise model to the fullest. The reason we chose to buy a master franchise in the first place is because the systems, manuals and procedures are already set in place. They have proven successful and therefore we followed those winning formulas,” explains CEO Radwan Masri of the success so far.
Ultimate goal
While having the right business development strategy in place will help to develop brand awareness and attract potential partners, getting the right partner is the ultimate goal.
Like any business within hospitality, relationships take centre stage and play a major role in successful franchising. Finding the right partner can be a challenging and drawn out process, but is ultimately rewarding.
Investment capability and F&B experience are important when deciding business partner criteria but aspects such as sharing the same values and aspirations and ensuring the same sense of commitment are also paramount.
“Don’t go for the first person that comes and says ‘I want your
franchise’. It should be a partnership. It should be a company that you can relate to and knows where you want to go rather than someone who just wants to invest. It has to be a partner who understands your brand and moves it forward,” advises More’s Marike Lap.
There is no doubt that the food and beverage franchise market is incredibly active. The influx of new brands to the region is continuous with a substantial amount of room for growth not just in the more sizable markets such as Saudi Arabia but across the GCC.
Tapan Vaidya of Jawad Business Group says: “In terms of volume, one must accept that UAE, Saudi Arabia, Kuwait and to an extent Qatar have market-sizes which are far more appealing than say, Bahrain and Oman. However, going by just the size of the market is not enough — it is what the operator does with the potential of a market that counts.
“For example, we at Jawad Business Group operate Chili’s in Bahrain with 10 restaurants and each restaurant is a profitable one. Quite a feat when there is only one other country in the GCC with more outlets.
Having said that, the cosmopolitan culture and the tourist attraction value of Dubai, along with the similar strength of Abu Dhabi, does make the UAE a lucrative market in spite of the downturn of the last couple of years. I believe the potential of this market will only grow going forward.”
Ruchdi Abou Haka, vice president F&B at Azadea, one of the largest franchising companies in the region with a portfolio including favourites such as Paul’s and The Butcher Shop and Grill, also cites Abu Dhabi, commenting: “The GCC countries are all attractive in general.
However, the markets which come to mind are Qatar and Abu Dhabi. The growth of those two areas is especially supported by the local governments with growth in many areas, from tourist trading to expanding businesses.”
With the Middle East being a hive of potential, the prospect of going global will appeal to the spirit of any passionate entrepreneur and, in a part of the world that is not yet ‘saturated’ and is still open to new ideas and concepts, it’s an exciting time to be in the F&B franchise industry.
While the region has proven that it can successfully import some of the biggest brands to cater to the market, it’s encouraging to witness the development of locally developed brands gaining momentum in the international arena.
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