Investors usually find food and beverage (F&B) franchise as the most lucrative start up venture opportunity. The large and varied demography of the Middle East offers huge scope to local/global F&B players launch innovative food concepts.
Inarguably, food ventures are one of the most interesting and familiar business ideas with immense potential for franchising in UAE. The food concepts provide lot of flexibility in terms of investment and business formats. An investor can choose from options like quick-service restaurants to full-service concepts. In the current economic scenario in the Middle East, many people in the region are interested to start their food businesses as f&b sector is one of the most popular sectors for people seeking avenues for self-employment and self-reliance. The franchising environment in the region is conducive enough for the international as well as local f&b players for launching their franchise concepts. Gauging the vast scope of f&b market in the region, Middle East is witnessing huge influx of f&b brands. And both the global and local franchises are offering lucrative business opportunities in the Middle East.
Despite f&b being the most acceptable franchise concept, every f&b franchise is not a hit even though it is the most sought after sector to launch or seek franchise business.
For franchise success
Every f&b franchisor launching their business in the Middle East would want to emulate the success of leading food brands namely McDonalds, Pizza Hut, Dominos, Subway, Starbucks and KFC. People recognise these brand names world over and also they are well established in the Middle East. For f&b business, it is important that a franchisor is able to offer a distinctive brand and also understands value proposition of its targeted clientele. The franchisor needs to scan the market to find the demand gap for its kind of concept, its consumer segment and prepare its business plan accordingly.
Starting out
Increasing trend of eating out owing to the busy life style and work culture has led to the growing acceptability and popularity of f&b brands. The rising food cost inflation and health awareness, world over people have become more aware and want only good and tasty food which is nutritional as well as pocket friendly. Middle East market and its consumers are no exception. Therefore, the franchisor’s requires rolling out a ground breaking and trendy concept that combines good food with the basic standards of the brand. The concept should be appealing enough to strike an immediate chord with its consumers. The franchisors should be able to understand the market dynamics of the region, its primary risk factors. The Middle East region is a melting pot of ethnic diversity and also world’s major travel (business and leisure) destination. Therefore, the region’s f&b market is very vibrant and offers wide array of consumer preferences in terms of taste and cuisine. Therefore, there is a scope for number of food concepts in the region.
Critical factors:
Ideation to implementation: The franchisor has to undertake a challenging journey form ideation to implementation. The plan needs to be analysed thoroughly in light of prevalent practices and franchise models in the Middle Eastern f&b industry. This will help in generating a sound business plan and also give an insight to the competition in the market and aid in positioning the brand right.
Structural and operational aspects: franchisor need to pay attention to matters related to the structural and operational aspects of the franchise concept. Doing enough research and taking professional help for formulating business plan is advisable.
Sound business plan: The sound business plan would incorporate aspects such as budgeting decisions for branding, outlet design, furniture and fixtures, menus, sellers, staff, advertising and promotions. Other budgetary decisions would include factors like whether to buy or hire the requisite equipment and storage facilities.
Marketing: On the marketing front, franchisor would require to understand the market demand and take care of advertisement and promotional activities for enhanced brand visibility. The franchisor should offer best services to its clients by emphasising on the quality of food products, prices, customer service level including behavior of the service staff, over all ambience of the location etc.
Training and support services: The franchisor must provide training and support services to its partners to maintain its brand image through efficient operational execution.
Maintaining the standards of quality: The franchisor needs to maintain highest standards of food quality, hygiene and safety along with obtaining necessary halal certification, if offering non-vegetarian products in the Middle East market.
Innovation: To maintain the interest of the consumers, innovation is the key.
Handling competition: Franchisor would require to consistently offering more products to attract clients and also maintain and grow its market share and stay ahead of competition. Finally, the faith in ones brand is very important for ensuring success.
All these factors are vital for a successful franchise business as more it is easier to ideate and launch food and beverage venture, it takes lot of work to make success out of it.
Conclusion: In nut shell, one can say that although, there is no secret recipe for success of f&b franchise business but the winning formula for ideating, launching food business and remaining in this sector requires combination of effective strategies and practices for conceptualisation, franchising, operations, marketing, legal issues, health and nutrition, cultural aspects and also appraisal of latest trends in the Middle East f&b industry.
