Chains vs independents

TKI's Daniel During.

Thomas Klein International’s Daniel During explains why chain outlets that mindlessly tow the corporate line are doing so at the expense of the region’s restaurant reputation…

It’s my opinion that Dubai has yet to establish itself as a true food-destination city — and one major factor hampering its progress is the fact that independent restaurants have been run with too much emphasis on making a rapid return on investment, at the expense of that essential passion for food.

One business model that seems to thrive in Dubai is that of the chain or franchised restaurant.

Think of your favourite restaurant outside of a hotel; chances are it has several branches across town, quite possibly one in every shopping mall.

The franchise model does have several advantages for the investor and operator. It basically offers a ‘restaurant in a box’: everything from the interiors, menus and uniforms to operational guidelines has already been set out in a series of corporate manuals.

This model allows new outlets to be opened relatively quickly and with relatively low start-up costs — something that has been a prime consideration for many investors looking to cash in on the boom years.

From the consumer point of view, this model gives the comfort of knowing what to expect, in appearance and service as well as on the menu.

But the franchise model also has its drawbacks.

Precisely because everything has been predetermined and standardised, there is little scope for individuality. Chains and franchises have, by definition, something inherently systematic, distant and corporate, with a lack of creativity innovation and passion.

A chain or franchise’s key strength is that very ‘sameness’, with relatively reliable quality.

However it is flexibility and creativity, along with the ability to tailor to guest whims, is precisely what allows an outlet to evolve from just serving good food to surpassing customer expectations — and that applied passion and creativity is what makes consumers travel kilometers to try out an unfamiliar restaurant.

So it seems the strength of large chains and franchises is also their weakness.

Here are a few other points that need addressing at such outlets:

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Chains target the largest market, so individuality or anything beyond the confines of the operational manual is discouraged.

Employees are trained to follow strict procedures, but in the process, they are discouraged from catering to individual customers’ needs, as it would disrupt the flow.

It can seem tiresome to cater to individuals, but it is actually hugely rewarding for the employee, the client and ultimately the business to provide a service and product that is truly appreciated.

Because everything is standardised, the staff and management employed are not allowed to contribute any form of personal input, and they cannot change anything or add the personal touch.

This can be frustrating for an employee with the motivation and the skill to excel, and it may increase employee dissent and turnover.

Word-of-mouth is the most important marketing component of an independent restaurant; happy customers talk.

Plus happy employees will hone their skills to learn and grow.