Franchising MIDDLE EAST

When we hear the word franchise, the first thing that comes to mind is food and beverage (F&B) operations, since the most famous franchise concepts are food-related. In fact, the franchise sector in the Middle East is valued at USD 30 billion and growing at a rate of 27 percent annually, while around 23 percent of the world’s franchises are food-related. In 2016, the portfolios of top food-franchise companies were focused on specific concepts such as Lebanese, café-bistros and Italian, while new trends were introduced to the supply base, like food trucks and street food. Leaders of these franchises put their success down to factors such as transparency, responsibility and sustainability.

As you peruse this list, please bear in mind that it’s not intended to be an endorsement of a company. Before investing in a franchise opportunity, always read the company’s legal documents, consult with an attorney and an accountant and talk to existing and former franchisees.

FRANCHISE LEADERS

Founded in Kuwait in 1964, Americana Group has expanded to become one of the largest and most successful corporations in the Middle East and North Africa region (MENA). The company went public with an IPO and is publicly traded on the Kuwait Stock Exchange under FOOD.KW. The group activities span across 13 countries, with a network of over 1,700 outlets and a manning chart of over 63,000 employees from 21 nationalities. The group is not only the largest operator of restaurant chains in the MENA region, but also one of the most successful franchise operators in the world. It operates 12 of the world’s most recognized brands in the Quick Service Restaurants (QSR), Casual Dining and Fine Dining categories, such as: KFC; Pizza Hut; Hardee’s; TGI Friday’s; Red Lobster; Olive Garden; Longhorn; Costa Coffee; Krispy Kreme; and, most recently, The Counter. The group remains bullish, with more deals and openings underway. “We are delighted to welcome Red Lobster, Olive Garden and Longhorn Steakhouse to our family,” said Americana Chairman and Managing Director, Marzouk Al Kharafi. “Consumer demand for casual dining brands in the Middle East market has grown over the past decade, and we expect that growth to continue in the future. The addition of these three highly regarded brands to our portfolio enables Americana to build on its long legacy as the leading restaurant operator in the region.”

As one of the most dynamic and successful groups in the region, Alshaya franchises some of the world's best known brands, from the Middle East and North Africa to Russia, Turkey and Europe. Alshaya operates across a uniquely wide range of sectors, offering consumers the latest and best recognized names in F&B, such as: Starbucks; P.F. Chang’s; The Cheesecake Factory; Pinkberry; Dean & Deluca; Le Pain Quotidien; Texas Roadhouse; Shake Shack; IHOP; Potbelly; Raising Cane’s; Pei Wei; Teavana; Asha’s; Babel; Veranda; Bridgewater; Brasserie de L’etoile; Sprinkles Cupcakes; Al Forno; and Café Coco. The group’s multibrand, multi-market franchise follows an aggressive expansion plan, while bringing leading food concepts to local malls and high streets, delivering a truly sophisticated experience.

Chadi Chidiac, managing partner of hospitality management consultancy PROTOCOL, takes us through the top F&B companies in the region and what they’re serving up in terms of successful franchising