News analysis April 2010
run for more than 25 years and is now in tical within each chain, there are unable the process of franchising the brand further to adapt fully to the local market, often reafield — noted there was “an element of un- maining foreign to the culture and colour of certainty” in expanding an unknown brand. the people,” he claimed. “If the franchise is not deMore Café and Intelligent veloped with total diligence Foods managing partner It’s pretty much Marijke Lap agreed that the and adequate resources, the chance of failure is very a no-brainer for influx of global chains had high,” he conceded. resulted in “a uniformity of someone who So expanding is not easy for brands offering very similar small, home-grown brands; wants to start an fare, most of whom have not but is the fact that the Middle F&B brand, but adapted their menu to suit the East market consists of prelocal palate”. dominantly foreign franchis- has no experience However there are excepand no time to tions: established chain opes a problem? According to Abdul Rah- develop his own” erator BinHendi Enterprises’ man Falaknaz, president of not only franchises western International Expo Consults brands, but also develops its — organiser of Franchise Middle East own unique F&B offerings. (FME) — the presence of successful chain The group’s president Mohi-Din Binhenoutlets ensures the consumer more choice. di commented: “My loyalty is really to our “Further advantages come from their ex- own concepts. pertise and established franchise systems, “We don’t really need western brands which help this region to learn,” he noted. as such; we have them so we can compete Similarly Sami Daud, chief executive of in the market with others who have such Gourmet Gulf — the lcoal franchisee for chains in their portfolio. YO! Sushi, Gourmet Burger Kitchen (GBK), “But we are focusing on developing our California Pizza Kitchen (CPK) and Morel- own brands, making our own ventures and li’s Gelato — noted that the introduction of really making our original concepts sucestablished players increased competition cessful in the area,” he explained. and standards across the market. “We are in the process of franchising our “Choosing to import an existing western home-grown Japengo concept and we will franchise is similar to buying a successful be launching three new original concepts business model with an efficient learning later this year,” he revealed. curve,” he added. BinHendi’s effort may tell a success stoDaud said the company took “meticu- ry, but other local brands — particularly lous measures” to ensure the international single-outlet operators looking to expand brands would fit into the regional market. — do face challenges; primarily convincing “This is reflected in every aspect of our landlords to accept them in prime locations, restaurants, from the seating area to the according to During. greetings and service to our menus. Plus we “Big groups are able to negotiate better adapt our menu offerings to local and re- leasing rates with landlords than newcomgional preferences without jeopardising the ers, making it increasingly difficult for new essence of the brand,” he asserted. concepts to be profitable,” he noted. However Thomas Klein’s During said cerInternational Expo Consults’ Falaknaz tain limitations necessarily applied to most added that such brands also faced a fight international franchises. to be accepted by the region’s population of “As foreign franchises are all managed diverse nationalities. under a set of corporate guidelines, all iden“Everyone is familiar with brands like Mc-
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www.hoteliermiddleeast.com/f&b
IEC’s Abdul Rahman Falaknaz.
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visitors attended this year’s Franchise Middle East exhibition, which took place last month in Dubai
BinHendi Enterprises’ Mohi-Din BinHendi.
April 2010 Caterer Middle East
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