Export success: Beirut finds itself the flavour of the monthBy Lina Saigol in Beirut

Published: June 7 2011 16:49 | Last updated: June 7 2011 16:49

Brand Lebanon has become a hot commodity in the United Arab Emirates.Bored with old, established western brands such as McDonald’s and Kentucky Fried Chicken, the Gulf is hungry for newer, trendier products to fill both local stomachs and the proliferation of mallsopening in the region.

Demand for Lebanese concepts has surged, and the country has been exporting its coffee shops, restaurants and quick-service outlets to other parts of the Arab world.Popular homegrown franchises being transported include, Kababji, which serves fresh, authentic Lebanese cuisine; Zaatar w Zeit, which serves manou’shehs – the Lebanese wrap with a twist; Casper & Gambini’s, which specialises in healthy gourmet food; Crepaway, a casual, quick-service eatery, and Dip’n Crunch, an American-style diner.

“The market is booming in the Gulf and there is a strong affinity with Lebanese food,” says Nagi Morkos, co-founder and managing partner of Hodema consulting services.“These brands aim to cater for all nationalities; whether Emiratis, Arabs, Lebanese, Europeans or Indians,” says Mahmoud Harb, multi-brands manager at Cravia, which owns the franchises for Zaatar w Zeit and Roadster diner in the UAE.Unlike in Lebanon, the most liberal country in the Middle East, in countries such as Saudi Arabia and Kuwait, food is often one of the few permitted forms of entertainment.

Jade Mamarbachi, 32, a public relations consultant based in Dubai and a regular visitor to the emirate’s Kababji outlet, says it has filled a hole for an affluent crowd of diners happy to pay less for good food without alcohol.“What Kababji also does well is home delivery and it offers a ‘home’ menu, so young Arabs who live away from their parents can order food they would usually have at home,” Mr Mamarbachi says.

Caper & Gambini’s was one of the first Lebanese brands to transport its concept to the UAE. It opened in Kuwait in 2002, followed by Saudi Arabia a year later, which is its largest outlet to date.Franchising appears to be the preferred model for these brands looking to expand.

“The old ways which prevailed for more than 30 years such as partnership, or joint venture, with the Lebanese providing the knowhow and management and the UAE counterpart the finances, are long gone as a result of some misbehaviour on the part of one or both parties,” says Khaled Taki, president of the Arab Franchise Association.Perhaps more importantly, franchising does not involve risking large amounts of capital. 

Franchisers are paid fees and royalties, typically about 5 per cent of the outlet’s profits, while thefranchisees absorb most of the opening and operating costs.But there can be serious pitfalls for companies looking to take their formulas into new markets.Opening in Saudi Arabia, for instance, poses cultural and religious obstacles. Franchisees have to make provisions for a population that prays five times a day, will not sit at tables placed too close to one another, and does not eat pork.

A prosciutto and funghi pizza, for example, would not go down well in the kingdom.“When brands change their pricing strategy and positioning, it becomes distorted and they can quickly fail,” Mr Morkos warns. “Some low to mid-end restaurants can suddenly decide to add a marble floor instead of say, tiles, and if they change the concept, they need to sell more of the product which doesn’t work,” he says.The secret to success, says Mr Harb at Cravia, is consistency.“We are leaders in our domain, taking a traditional item to a whole new level of high standards. We offer quality food, great friendly service and we have something for everyone,” he says.

Training staff to the same standards as they have at home can also be a problem, as can outsourcing food suppliers, as this can quickly change the quality of a brand.Focusing too much on a mother company can also create risk. To mitigate the chances of that happening, Casper & Gambini, for instance, chose to reduce the number of outlets it had in Lebanon so that it could expand more outside the country.

This may explain why, aside from Kababji, the popular casual grill which has opened in Washington DC, few chains appear willing to spread their wings beyond the Arab world.There is also little brand recognition outside the region, deterring some Lebanese companies from taking their concepts further afield.But Lebanese food will always remain popular with Arabs, and, despite years of war, the country has proved capable of reconstructing, innovating, and creating time and time again. That alone is a highly exportable concept.

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