Hospitality News Middle East - Feb/Mar 2017 (Issue 110)

Inspiring your creations

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EDITOR'S VIEW

Editor-in-chief Nouhad Dammous Managing director Joumana Dammous-SalamĂŠ

Step by step our aim is to show the activity, success and solidarity of the hospitality family in the Middle East

Editor Annie Keropian-Dilsizian Publication manager Randa Dammous-Pharaon Features editor Rana Freifer Community manager Lisa Jerejian Publication coordinator Rita Ghantous Sub editor Miriam Dunn Graphic designers Elie Tufunkji Ibrahim Kastoun Contributing writer Miriam Dunn Gerard Saliba Sales executives Eugene Abella, Michel Ajjoub, Maha Hasbani, Josette Nohra, Elise Salem advertise@hospitalityservices.com.lb Subscription coordinators Houayda Haddad-Roumman Mirna Maroun subscribe@hospitalityservices.com.lb Circulation coordinator Karl Hitti News news@hospitalityservices.com.lb Production & printing Arab Printing Press

Hospitality News ME is distributed to trade professionals in the catering and lodging industry in the Middle East.

We welcome views on any subject relevant to the hospitality industry, but request that letters be short and to the point. The editor reserves the right to select and edit letters.

Published by Hospitality Services sarl Lebanon Borghol Building, Dekwaneh P.O.Box 90 155 Jdeidet el Metn 1202 2020 Tel: +961 1 480081 Fax: +961 1 482876 info@hospitalityservices.com.lb hospitalitynewsmag.com Dubai Tel: +971 0 503758001 zeina.chehayeb@ hospitalitynewsmag.com All the information disclosed in the magazine was provided by the parties concerned by each publication and checked to the highest possible extent by the editors. However, the magazine cannot ensure accuracy at all times of all information published and therefore could in no case be held responsible should any information reveal to be false or insufficient.

Franchising a restaurant or similar establishments For restaurants and other similar establishments, an increase in business and a change in numbers, trends and concepts signifies growth and expansion.

Entrepreneurial, dynamic and visionary young men and women may well wish to seek out a successful establishment to own and become a franchise.

However, franchising can be complicated and making the right decisions is not always clear cut. It is essential, therefore, to keep in mind some useful tips.

For the owner of an establishment, there are several advantages to franchising. Operating a successful franchise can quickly lead to a further opening, if the owner ensures that the franchisee is able to respond to and fulfill the necessary obligations.

Franchising your business is a proven route to rapid growth, but becoming a franchisor is not an automatic ticket to success. When the concept is franchised effectively it can be a great tool for expansion.

If you’re considering franchising your business, remember that the process of becoming a successful franchisor is usually long and involves considerable time and cost.

In order to be a successful franchise, a business needs to be replicable in new locations and easily systematized. Franchising does not require a personal touch, but rather a system that can be duplicated in newly-opened establishments.

Being a franchisor means you will be selling and supporting your franchises as a teacher and as a sales person.

Quality control is essential and good training programs and other support efforts will ensure that quality remains at the highest level in franchises.

Becoming a franchisee can be a shortcut to success when starting a business.

Both franchisor and franchisee have to learn the legal requirements of the new area and location.

Like any business model, franchising has its benefits and drawbacks; there is no way to know for sure whether franchising is right for you or not.

Good luck in deciding!

Nouhad Dammous Editor-in-Chief Docteur Honoris Causa FEB-MAR 2017 | HOSPITALITY NEWS ME

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In this issue Feb - Mar 2017

EDITOR’S VIEW

03

Franchising a restaurant or similar establishments

NEWS

08 INDUSTRY OVERVIEW 10 HOTELS 18 RESTAURANTS 26 CHEFS 28 SUPPLIERS

25

HORECA NETWORK

30 PREVIEW

4 reasons not to miss HORECA Lebanon

32 REVIEW

HORECA Kuwait 2017

EVENTS

36

Hospitality events on the horizon

38

Recap of Sirha, Sigep and Vinitech-Sifel

WHERE TO BE SEEN SEEN & HEARD

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MENA FRANCHISE OPPORTUNITY REPORT 2017 41 42 44 48 50 54 56 58 60

62 64 68

Opening: What it takes to be succesful The Hospitality News hundred The formula for franchising success Going global How to find the right partner Go small to go big!

Is your restaurant ready to franchise?

Franchisors’ dos & don’ts 4 marketing ingredients for a successful franchise recipe What went wrong?

Franchising Middle East Lead by example: Know your franchise 22 Lebanese F&B brands

HospitalityNewsME

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@Hospitality_Mag

BUSINESS TRENDS ‘Smart Cities’ The next standard in tourism?

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98

STRATEGY 88 OTAs: friend or foe?

92

EYE ON NYC The Big Apple of F&B

HOTELS 98 10 contractual issues for hotel owner-operators

100

MARKET UPDATE Morocco

SERVICE 102 Middle managers determine your success

SOLUTIONS

F&B 104 6 must-dos in fluctuating market conditions

106

TECHNOLOGY NFC & Bluetooth technology for hotels

PRODUCT ZONE

108

NEW PRODUCTS On the market

EQUIPMENT 112 Knives Cutting edge kitchen tools SPICES 116 Spice it up BEVERAGE 118 Milk The white stuff CHOCOMANIA 122 Sweet & savory sensations

WE WERE THERE

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Out and about with Hospitality News ME

Coming issue April - May 2017

• Special report Bakery and equipment • Eye on Beirut • Market update Iraq • Architecture & design Open kitchens • Hotels Mixed use schemes • F&B Chef entrepreneurs • Beverage Sparkling spirits

HospitalityNewsME

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NEWS

INDUSTRY OVERVIEW

TOURISM ON THE MOVE

TRENDING ON

HOSPITALITYNEWSMAG.COM Halal Tourism worth USD 238 billion by 2019

Several MENA countries are setting strategies to attract an increasing number of Chinese and Russian tourists. The Lebanese Ministry of Tourism is inviting Chinese travel agencies to visit the country to encourage them to set up periodic trips for their clients. The ministry has also given language classes to tour guides to be able to broaden appeal to an increasing number of Russian tourists.

Etihad Airways announced the ‘1,000 Chinese Visitors to Morocco’ campaign with Beijing Yougo World International Travel Service Co. Ltd. (Uniway), the largest Chinese tour operator specializing in outbound tourism to the Middle East and Africa. The airline is joining hands with the Moroccan National Tourist Office to attract 100,000 Chinese visitors each year by 2018. Dubai is witnessing a surge in Russian tourists due to a rebound in the value of the Russian Ruble.

Dubai Tourism said Russia is among the emirate’s top 20 source markets. Sharjah Investment and Development Authority (Shurooq) has been exploring business opportunities with Russian companies in extractive, primary, food and health industries.

USD 263 MILLION FUND TO DEVELOP TOURIST FACILITIES IN EGYPT

Research commissioned by the Government of Dubai and produced by Thomson Reuters in partnership with DinarStandard, found that halal tourism represents 11.6 percent of global tourism expenditure, with the industry expected to be worth USD 238 billion by 2019. Reed Travel Exhibitions, organizer of the Arabian Travel Market (ATM), will host the first ATM Global Halal Tourism Summit on April 26. arabiantravelmarket.com

Brighter days for tourism in Turkey?

The Turkish international tourism sector’s revenue dropped by over one third compared to the previous season, according to a report by the Turkish Hurriyet Daily News. The drop is driven by the travel ban imposed by Russia on Turkish holiday destinations, alongside other factors. The total number of Russian tourists visiting Turkey peaked in 2014 at 4.5 million, falling to 3.5 million in 2015 and plummeting further to 766,871 last year.

Four Seasons Private Jet makes Dubai debut

The hospitality industry's first fully branded jet touched down in Dubai at DC Aviation Al-Futtaim VVIP FBO and hangar facility at Dubai World Central. The private jet flew in from Moscow, with guests enjoying a three-day stopover in Dubai before traveling on to the Seychelles, Serengeti and Florence. The 52-seat, custom-designed Boeing 757 has 10 Four Seasons trained in-flight crew, including an executive chef, a sous chef, a four seasons concierge and a global guest services manager. fourseasons.com/aroundtheworld

The National Rural Tourism Forum 2016: Rural Lebanon in Motion

The governor of the Central Bank of Egypt (CBE) announced the launch of an USD 263 million (EGP 5 billion) fund to help investors develop and upgrade tourist facilities, including hotels, resorts and Nile boats, nationwide. The financing will be in the form of loans with a 10 percent interest rate. In order to be eligible, the applicant must own at least 30 percent of the property. Tourism in Egypt has been struggling since Russia and a number of European countries suspended passenger flights in late 2015. Egypt's tourism revenue dropped by 49 percent to USD 3.8 billion in 2015/16 from USD 7.4 billion in 2014/15, according to CBE. The challenging economic climate prompted the central bank to extend its initiative to support the tourism sector, including more flexible economic measures on payments. The bank is currently considering delaying loan payment deadlines for the sector to December 2018. cbe.org.eg

FOR UP-TO-THE-MINUTE DAILY NEWS FROM AROUND THE HOSPITALITY INDUSTRY GO TO

HOSPITALITYNEWSMAG.COM

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HOSPITALITY NEWS ME | FEB-MAR 2017

The forum focused on the Strategy for Rural Tourism Development for Lebanon, which was developed with the support of USAID and launched by the Ministry of Tourism in February 2015. Since 2012, the United States has invested USD 2.9 million to boost rural tourism by supporting local organizations and the private sector. usaid.gov

UNWTO World Forum on Gastronomy underway

The forum will be held in Donostia-San Sebastian, Spain, from May 8-9, 2017, dedicated to the link between gastronomy tourism and sustainability in the framework of the 2017 International Year of Sustainable Tourism for Development. unwto.org

Six Flags aiming to open first Saudi park by 2021

The expansion into Saudi Arabia will include three parks, with the first to open in 2020 or 2021. The parks, which cost between USD 300 and USD 500 million each, will likely be owned by the Saudi government. sixflags.com

NEWS

HOTELS

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15,000 HILTON ROOMS CURRENTLY UNDER DEVELOPMENT IN THE MIDDLE EAST

IN BRIEF

"The year 2016 has been one of strong, organic growth for Hilton in the Middle East, where we have over 15,000 rooms currently under construction,” Rudi Jagersbacher, p ‎ resident, Middle East, Africa and Turkey at Hilton Worldwide, told Hospitality News ME. He said that the chain has taken major strides into the mid-market segment, with a regional pipeline now boasting over 30 Hilton Garden Inn and Hampton by Hilton hotels, as the segment continues to exhibit strong growth potential.

Jagersbacher revealed the debut of Hampton by Hilton in Dubai’s Al Qusais and Curio, a Collection by Hilton’s Middle Eastern debut in the form of AlRayyan Hotel Doha. “The launch of this brand is a direct response to growth in demand for new travel experiences globally, and we look forward to continuing the development of The Rosemont Hotel & Residences in Dubai,” he explained.

“With the region benefitting from proximity and ease of access to rapidly emerging markets in Asia and Africa, hospitality companies which demonstrate a clear vision in terms of leadership, an ability to operate innovatively and efficiently under strong, distinct brands, will continue to attract developers, employees and guests in 2017 and beyond.” hilton.com

The Junior Arrival Experience is a VIP check-in scheme for guests, ages four to 10. Kids are given their own registration card to fill out and their own key card. hawthornsuitesdubai.com

LOUVRE HOTELS GROUP BUYS MAJORITY SHARES IN SAROVAR

Louvre Hotels Group, the second largest hotel group in Europe, acquired a majority stake in Sarovar Hotels, the largest independent Indian hotel chain in terms of hotels and presence. It has 75 hotels on the premium, mid-range and budget sectors, through three leading brands: Sarovar Premiere, Sarovar Portico, and Hometel.

Louvre Hotels Group continues to roll out its international expansion plans with this, its first investment of size in the Indian subcontinent. India, with its fast-growing economy, its global tourism potential and a significant under-penetration of branded hotel rooms, represents a new opportunity and a strategic market for the group. After launching a far-reaching scheme to strengthen its positions in China and South-East Asia, Louvre Hotels Group continues to boost its presence in South Asia, keeping up with the region’s constantly growing leisure and business tourism. In addition to the above three brands, Sarovar Hotels also has two F&B brands, The Geoffrey’s Pub and the Oriental Blossom, and manages the lodging and catering facilities of various institutions in India. Furthermore, the group manages 10 hotels under the Radisson, Park Plaza and Park Inn brands. louvrehotels.com

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Hawthorn Suites by Wyndham JBR unveils VIP check-in for kids

IHG Academy in Jordan

InterContinental Hotels Group has signed a new IHG Academy Program with Royal Academy of Culinary Arts - affiliate of Les Roches. The six month program involves both practical work experience and theory. A total of seven IHG hotels in Jordan are participating in the program with four to six students each. ihg.com New Les Clefs d’Or members in Lebanon

Lebanon’s Fadi Abi Ramia, concierge of Phoenicia Beirut and Chloé Chelala, head concierge and guest services manager of Le Gray Beirut are now members of the international Les Clefs d’Or association, growing the network to three members with Milad Francis, head concierge and government relations at Le Royal Beirut. The pinning ceremony took place at the Phoenicia Hotel Beirut Penthouse, in the presence of Dimitrios Liapis, Mediterranean zone director of Les Clefs d’Or. lesclefsdor.org

ROTANA TO ADD 4,360 KEYS IN UAE BY 2020 Rotana announced plans to open seven new hotels in Dubai, four hotels in Abu Dhabi and one in Ras Al Khaimah by the end of 2020. Six of the upcoming properties will be five-star hotels, with the remaining properties comprising a mix of four- and three-star hotels and hotel apartments. Upon completion, the new hotels will add 4,360 keys to Rotana’s existing inventory, taking its fast-expanding portfolio in the UAE to 44 properties, including 21 in Dubai and 17 in Abu Dhabi, with a room inventory of 11,782 (6,682 in Dubai alone and 5,100 in Abu Dhabi). The total value of the 12 upcoming properties managed by Rotana in the UAE is estimated at USD 1.7 billion. Omer Kaddouri, president & CEO of Rotana, said, “The UAE is our home market and even as we pursue our global ambitions and expand our footprint into new geographic regions, the country continues to remain the fulcrum around which Rotana’s business strategy is developed and implemented." rotana.com

NEWS

HOTELS

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JUST OPENED KSA

OMAN

TURKEY

Marriott International launches Aloft brand in Dhahran The hotel is the brand’s second property in the Kingdom and third in the Middle East.

As part of a growing portfolio of properties owned by FAS Hotels, a division of Fawaz Al Hokair group, the property offers 262 loftinspired guest rooms. marriott.com

Action Hotels opens Mercure Sohar The owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, Action Hotels, has opened Mercure Sohar, its third property.

The 151-bedroom hotel is Action's ninth collaboration with AccorHotels and the first Mercure-branded property in the portfolio. actionhotels.com

Conrad Istanbul Bosphorus re-launched after USD 70 million renovations Conrad Istanbul Bosphorus has completed its four-year renovation project. All 76 suites and 553 rooms, including the hotel’s restaurant, spa, swimming pool and lobby, have all been redesigned. Investment in the project is USD 70 million. conradhotels3.hilton.com

Dusit International continues global expansion Thailand-based hospitality company, Dusit International, debuted its dusitD2 brand in the UAE. Catering to business and leisure travelers, the dusitD2 Kenz Dubai comprises 237 rooms and suites, three meeting rooms and various leisure amenities and dining outlets. dusit.com

Nikki Beach Resort & Spa Dubai in Dubai Nikki Beach Resort & Spa Dubai, the fourth in the brand’s global series of beach and urban retreats, opened its doors during the festive season. Launched by Nikki Beach Hotels & Resorts Ltd. and developed

by Meraas, the resort features 132 keys, comprising 117 rooms and suites and 15 villas, alongside 63 private residences. nikkibeachhotels.com

UAE

The five-star DUKES Dubai opens The first international property for DUKES, which has been popular with GCC visitors in London, had a soft opening for its five-star property in Dubai. The project is owned and operated by Seven Tides.

Once completed, it will consist of 273 guestrooms, including 64 suites, as well as 227 fully-furnished hotel apartments. dukesdubai.com

The first hotel in Dubai Parks and Resorts, Lapita Autograph Collection Hotels The family-friendly hotel comprises 504 rooms, including 60 suites and three private villas.

It also has various F&B offerings, two outdoor pools and a lazy river, a fitness center and MICE facilities. marriott.com

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Fairmont Hotels & Resorts opens fifth property in Fujairah With this 180-room property, the chain’s outlets include Fairmont Dubai, Fairmont The Palm, Fairmont Bab Al Bahr in Abu Dhabi and Fairmont Ajman. fairmont.com

NEWS

HOTELS

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OPENING SOON KSA

MOROCCO

Fourth Langham Hospitality Group in the Middle East Langham Hospitality Group has announced an agreement with Advanced Hotels Company to manage a luxury urban hotel in Jeddah, KSA. The hotel is slated to open in summer 2018 with 238 rooms and 39 suites. langhamhotels.com

Eagle Hills launches Fairmont Residences La Marina Rabat-Salé Abu Dhabi-based Eagle Hills and Fairmont Hotels & Resorts have announced the sales launch of Fairmont Residences La Marina Rabat-Salé. Construction of the project, which will be the first Fairmont hotel in Morocco, commenced in September, with completion scheduled for 2019. eaglehills.com

TUNISIA Deutsche Hospitality expands into Tunisia Steigenberger Hotel Kantaoui Bay and the Jaz Hotel Tour Khalef in Sousse are slated to become operational by Q2 2017. The Steigenberger hotel will be a five-star property with 365 rooms and suites and six restaurants. The four-star Jaz Hotel Tour Khalef will offer 570 rooms and suites, as well as eight restaurants and bars. deutschehospitality.com

UAE

New Paramount Hotel Residences in Dubai

by Damac Paramount Residences at the Paramount Tower Hotel & Residences, is a 64-story project with 826-key luxury hotel and hotel residences. In addition to a plethora of amenities, it will offer a private Paramount Pictures screening room. Construction work is already underway, with completion scheduled for Q3 2019. damacproperties.com

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HOSPITALITY NEWS ME | FEB-MAR 2017

R Hotels to open the first Wyndham Garden in the UAE Wyndham Garden Ajman Corniche, a first in the UAE, with a total investment of USD 54.5 million, will open in Q4 2017. The 17-story, four-star hotel will feature 179 rooms, including 138 standard rooms and 41 suites, as well as an executive lounge on the top floor. rhotels.ae

Emaar signs agreement with RAK’s Al Marjan Island to build 186,000 m2 mixed-use project The high-end residential, hospitality and retail components will be located on Al Marjan Island in Ras Al Khaimah. Emaar will pilot the first phase of its project, which will feature a five-star luxury hotel and serviced residences and a world-class retail precinct. emaar.com

Lactalis Dairy Products and Trading (Middle East) LLC Email: info@ae.lactalis.com - Tel: +971 4 3623025

NEWS

HOTELS

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PEOPLE ON THE MOVE Two new senior appointments in Sommet Education Sommet Education, encompassing Glion Institute of Higher Education and Les Roches Global Hospitality Education, have appointed two new top echelon leaders.

Benoît-Etienne Domenget will act as CEO, while Dr. Fabien Fresnel, will be the new COO. Domenget has a long-established career with Accor Group, having overseen its development throughout

Europe, the Middle East and Africa. Dr. Fresnel has over 20 years of professional experience built up across the combined hotel, restaurant and higher education sectors. He started his career working for Michelin-starred restaurants and luxury hotel properties in France and abroad, where he also led F&B operations. Prior to joining Sommet Education, Dr. Fresnel conducted strategic development projects, including a hotel school in Jordan.

Leonardo Baiocchi is the new GM of Four Seasons Dubai. He was formerly the GM at two Four Seasons properties in Istanbul for five years.

Carlson Rezidor Hotel Group has appointed two new GMs for three of its Radisson Blu hotels in Dubai.

David Allan will take over Radisson Blu Hotel, Dubai Waterfront and Radisson Blu Dubai Canal View as cluster GM. Alfio Bernardini has been appointed GM of Radisson Blu Hotel, Dubai Media City.

David Allan

Benoît-Etienne Domenget

Dr. Fabien Fresnel

The Ritz-Carlton Hotel Company has appointed Amit Arora, a hospitality industry veteran with over 20 years of experience, as GM of The Ritz-Carlton Ras Al Khaimah, Al Wadi Desert and The Ritz-Carlton Ras Al Khaimah, Al Hamra Beach.

Alfio Bernardini

Emaar Properties PJSC has appointed Olivier Harnisch as the CEO of Emaar Hospitality Group, its hospitality and leisure business. He brings over 30 years of international experience in the hotel and tourism industry to the role.

Ignace Bauwens is Wyndham Hotel Group's new regional VP, Middle East and Africa.

Bauwens has acquired almost 30 years of experience in the hospitality industry, including senior operations roles at Accor and InterContinental Hotels Group.

The Al Habtoor City Hotel Collection has appointed Jason Harding as complex general manager, leading the teams at The St. Regis Dubai, W Dubai – Al Habtoor City and The Westin Dubai, Al Habtoor City.

Sanjeev Agarwala rejoins Al Habtoor Group from Meraas Holding, where he acted as chief strategy officer and vice presidentfunding, to become COO, Habtoor Hospitality and Al Habtoor Investment.

Marc Guenther has been appointed GM at The Regency Hotel Kuwait. He has over 20 years of experience across Europe, Asia and the Middle East, with a strong emphasis on F&B operations.

Stephen Meredith has taken on the role of GM at The Steigenberger Hotel Business Bay in Dubai. His most recent role was director of F&B at the Fairmont Bab Al Bahr in Abu Dhabi.

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HOSPITALITY NEWS ME | FEB-MAR 2017

NEWS

RESTAURANTS

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5 QUESTIONS TO

MERT ASKIN PRESIDENT F&B AZADEA GROUP

1. What opportunities do you seek in the MENA region?

The MENA is recognized for having a young population that is well-traveled and tech-savvy. This clientele follows the trends, appreciates and understands the brands. Additionally, the GCC’s tough and humid weather drives a major and interesting lifestyle happening in malls, where F&B is a key component. This is actually our main playground. We seek to bring casual dining experiences that appeal to a wide range of consumers.

2. What challenges have you faced throughout your operations?

We are fortunate enough to be able to state that challenges have been minimal.

Our development and management strategies are focused and straightforward.

We understand that picking the right location in the right city with the right rate is essential for the survival and the success of any brand. Since our business kicked-off, we have accumulated a lot of experience through optimizing our management skills and our partnership with our franchisees, which is producing mutual and joint success.

3. Which markets interest you more and what differentiates each of them?

The UAE, KSA, Qatar and Kuwait are our key markets. Bahrain, Oman and Egypt are also of growing importance. However, each market has its own specifications and characteristics. One cannot apply the same operation scheme. For instance, the UAE has a large tourist base, in addition to a broad western community and expats

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HOSPITALITY NEWS ME | FEB-MAR 2017

A look at Köşebaşı, an upscale Turkish steak house currently operated by Azadea Group in the Middle East.

that are already familiar with global brands.

This makes establishing such international concepts easier in the UAE. Other markets may rely on the local population. Therefore, we need to adapt in terms of marketing and sometimes, in terms of menu.

However, difference might not go beyond 10 percent in the menus and in the price point, as over the years, we managed to find a combining component.

4. What are your future plans?

Our aim is pursue our growth strategy with our existing brands, and add new ones to our portfolio. We have a clear-cut mapping related to where and with what to grow.

We will continue to monitor and sculpt customer demand in order to differentiate our offering.

5. Would you ever consider adding homegrown concepts to your portfolio of brands?

We are considering adding homegrown concepts as creativity and world-class standards already differentiate concepts made in the MENA.

ABOUT AZADEA GROUP Since its inception in 1978, Azadea Group has grown to be an established lifestyle retail company, owning and operating over 50 international franchise concepts across the Middle East and Africa, in various industries, including F&B and fashion. With over 12,000 employees, the company boasts a solid infrastructure overseeing over 650 stores across 13 countries, including Algeria, Bahrain, Egypt, Iraq, Jordan, KSA, Kuwait, Lebanon, Oman, Qatar and the UAE.

F&B PORTFOLIO BRANDS Argo tea café A Chicago-based tea café concept with healthy sandwiches, salads and freshly baked pastries.

Available in: Qatar, UAE. Columbus Café Offers a wide range of hot drinks, sandwiches, salads and desserts. Available in: Bahrain, Kuwait, Qatar, UAE. Eataly A chain of high-end Italian market/restaurants. Available in: KSA, Qatar, UAE. Köşebaşı A modern Turkish restaurant out of Istanbul, serving authentic grills out of the barbeque. Available in: Bahrain, KSA, Kuwait, Oman, Qatar, UAE. Peal Juice Bars Makes fresh juices and smoothies. Available in: Qatar.

Paul A renowned global brand famed for its selection of bread, viennoiseries, pâtisseries, sandwiches, soups and salads.

Pulp Juice Bars Make fresh juices and smoothies. Available in: UAE. Rosa Mexicano Serves up an innovative version of authentic Mexican cuisine.

Available in: UAE. The Butcher Shop and Grill A top-end South African grill-house, specialized in quality grills, as well as a fully-fledged retail butchery. Available in: Bahrain, KSA, Qatar, UAE. azadea.com

NEWS

RESTAURANTS

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SKY MANAGEMENT’S NEW F&B VENTURE, SAX, BRINGS FOOTFALL BACK TO DOWNTOWN BEIRUT Following La Crêperie and Liza Beirut, SAX is Sky Management’s third restaurant outlet to complete the company’s nightlife repertoire. In an exclusive interview with Hospitality News ME, Chafic El Khazen, founder and CEO of Sky Management said that as the company expands, it needs to grow its portfolio. “Sky Management has been present for the past 10 years, and the needs of our initial clientele have evolved. This is why we started getting more involved in the F&B sector, in order to complete our already well-established nightlife repertoire, and in order to cater to more people,” he said. El Khazen describes SAX as a “new dining experience”. The restaurant is located in Beirut Souks, which is still a prime touristic location. He said Solidere and Sky Management have been working alongside each other for a few years now. “We believe that Beirut Souks is an appealing destination.” Asked if it is the right time to invest in F&B in Beirut, El Khazen acknowledged that demand was currently not growing for existing concepts.

“However, we decided to take this challenge, since the SAX concept creates a totally new experience.”

Chafic El Khazen

Samaan Hilal

The restaurant offers international cuisine with a Mediterranean flair. “We wanted to focus on selecting fresh, simple and good food. Chef Samaan Hilal, from BRAINSTEAM, worked with Sky Management on the menu engineering.” Investment in the project is around USD 1.5 million. The restaurant’s

seating capacity is 120 people. Atelier2té, co-founded by the two architect sisters, Tessa and Tara Sakhi are behind the design.

El Khazen promises novelties in both nightlife and the food industry in 2017.

Founded in 2006, Sky Management is a pioneer in founding and exporting the Lebanese nightlife experience, with SKYBAR. saxbeirut.com

IN BRIEF Meraas launches Dubai Gourmet The new business, designed to deliver gourmet dining destinations will introduce innovative experiences to the city and elevate the concept of ‘experiential dining’. Drawing inspiration from some of the world’s eclectic cuisines, cultures and traditions, each destination will offer visitors a different authentic experience. Dubai Gourmet’s concepts will be located in both standalone venues and existing and upcoming Meraas destinations throughout the Emirate. The first concept, Qasr Al Sultan, is due to open in January 2017, close to Dubai Parks and Resorts in Jebel Ali. meraas.com

DONALD BATAL IS THE NEW THE CEO OF IRADA HOLDING Donald Batal, founder of Classic Burger Joint and Tomatomatic, has become the CEO of IRADA Holding, based between Lebanon, Qatar and Europe. The company is active in the F&B and retail industry in the Middle East and Europe. Following this major appointment, he will be at the helm of the group, leading

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its future development. The group owns Galler Chocolatier worldwide, Bonnet à Pompon, Du Liban, a gourmet Lebanese restaurant in Madrid, in addition to the master franchise rights for Cappuccino Grand Café in the Middle East, North Africa and Asia. In an exclusive interview with Hospitality News ME, Batal said, “Our upcoming

HOSPITALITY NEWS ME | FEB-MAR 2017

development plan over the coming five years involves expanding the whole group’s portfolio throughout the world.

We are currently in the phase of building the team that will be part of our new journey. We have just opened the Galler flagship store in Qatar and signed the Kuwait territory.” iradaholding.com

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NEWS

RESTAURANTS

AFKAR HOLDING LAUNCHING GAMIFICATION LEARNING Afkar Holding, the company behind Lebanese restaurant Babel, has embraced the digital era by developing an interactive mobile application game called ‘Berjak 3aleh’ (‘your tower’ in Arabic). The name was inspired by the tower at the entrance of Babel’s outlets.

The purpose of the game was to adopt the ‘edutainment’ approach to training and create a true learning experience.

In the game, players answer questions related to behavioral and technical competencies. They are also encouraged to compete against each other, after collecting a certain amount of points, by sending challenges to other players. As they increase their scores, players are able to play a new category called ‘Aweh Albak’ (‘strengthen your heart’ in Arabic), in which they answer questions on general knowledge and fun facts, such as: “In which year was Lebanon mentioned in the Guinness book for the biggest plate of hummus ever made?” Answering within a limited time earns participants coins and makes them eligible for stars and trophies. Winners were announced during Babel’s annual dinner in December. babelrestaurant.com

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GHIA HOLDING PLANNING USD 6 MILLION MARKET EXPANSION Beirut-based Ghia Holding, the company behind Abd El Wahab, Ahwak, Duo and Caribou Coffee, among others, is planning a USD 6 million expansion strategy for the Lebanese market, according to Operations Director, Maroun Daou. For 2017, the company is planning a new all-day café in Mar Mikhael called, El Denye Hek. The all-season destination can seat 250 people with investment around USD 1.6 million. “We are planning one outlet in Lebanon, but considering franchises in the Gulf region, where our bases are found. However, the concept cannot be replicated everywhere as a regular outlet, as it requires a specific climate,” Daou said. Additionally, Ghia Holding is opening another new concept called Med by Duo, which serves Mediterranean cuisine. The first outlet will be opening in Beirut City Center in 2017.

The company is also expanding on a regional level, opening its first franchised Ahwak in Muscat City Center, Oman, after signing a franchise agreement with Horizon Hospitality Holding - the franchisee for the same concept in Dubai. Daou also said that the company is planning the first Abd El Wahab in London, set to open in mid-2017 in a USD 1.2 million (£1 million) venture, without key money which is around USD 620,000 (£500,000). ghiaholding.com

INKED: A NEW F&B CONCEPT IN DUBAI Entrepreneurs, Kenza and Patrick Jarjour, have merged their diverse skills to launch INKED, a new food and events platform in Alserkal Avenue, Dubai, the region’s prime arts hub. “We are both firm believers in the power of food to connect people and we wanted it to be the backbone of our project,” they said. Conceptual dinners, guest-chef pop-ups, inventive cooking workshops and tastings, menu development, private events and creative collaborations are among the activities hosted in this repurposed warehouse premises, with fully-equipped kitchens and versatile event space. The founders believe Dubai is highly receptive to homegrown projects. “The challenges are the same as they can be for anyone wanting to start a new project, especially in our case, where there is no benchmark per se,” they said. According to the Jarjours, there is a strong interest in the Middle East for refined food experiences. “Food and the culinary world is very much in fashion these days. We do not consider ourselves as ‘gourmet’ and prefer to have the freedom to create all kinds of dining experiences that involve not just what is put on the table, but everything that surrounds it; the story, the setup, the visuals and all the senses.” inked.ae

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NEWS

RESTAURANTS

NEW OPENINGS RICETTA, UAE

Opened December 15 Owner Four Points by Sheraton Bur Dubai Total investment USD 40,000 Head chef Alex Sebastianutti Covers 66 indoors, 30-40 outdoors Average price/person Ala carte menu price starts from USD 7-35 per dish and average spent

BABEL KUWAIT

for two persons is USD 81 Typical dishes Home-cooked Italian meals. Classics such as gamberi piccanti or ossobucco alla Milanese, homemade ravioli featuring pumpkin and cheese (Provola Affumicata) or lamb and broccoli (Agnello e Broccoli) Address Four Points by Sheraton, Bur Dubai

LA MÔME DUBAI, UAE

The award-winning Lebanese brand Babel, known for its authenticity, exquisite culinary offering and dining experience, has opened its first outlet outside of Lebanon at a stunning custom-built location overlooking the Arabian Gulf in Kuwait.

Opened December 14 Covers 370 Typical dishes Babel takes centuries-old Lebanese ingredients and reinterprets them with a modern perspective, to create dishes like Fattet Shrimps (traditional eggplant fatteh topped with shrimp a la Provencale) and Tabboulet El Bahhar (shrimp mixed with wheat sprouts, tomatoes, onions and parsley). Mwarrade, (finely-shaped kibbeh stuffed with meat, cherries or with meat, onions, coriander and saffron). Maajoua, (a grilled kebab stuffed with cheese, sweet bell peppers, pistachio and mushrooms) Address Marina World, Salmiya, Gulf Road Street babelrestaurant.com

STEAKBARSUSHI, LEBANON Opened October Owner Olivier Loeb (owner and managing director) Executive chef Johann Dudemaine Covers 90 Average price/person USD 7590 (depending on alcohol) Typical dishes Full roasted

pigeon, the traditional beef bourguignon and the original steak tartar, toblerone chocolate mousse and crème brûlée Address 49th floor of Nassima Royal Hotel, Sheikh Zayed Road, Dubai LaMomeDubai.com

BARBIZON, LEBANON Opened November 23 Owner Tabet & C.O Executive chef Michel Abi Saad Covers 90 Average price/person USD 70

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Typical dishes Bouillabaisse, fresh crab salad, a variety of fresh lobster dishes and oysters Address Quartier Trabaud, Achrafieh, Beirut

HOSPITALITY NEWS ME | FEB-MAR 2017

Opened November 10 Owner(s) Charbel Elie Makhlouf and Cristel Charbel Makhlouf Head chef George Dakkak Covers 110 Average price/person USD 30

Typical dishes Steak and sushi coupled with different sauces Address Mar Mansour Street, Facing Pharmacy Braidi, Naccache steakbarsushi.com

READ MORE ONLINE HOSPITALITYNEWSMAG.COM

EL DENYE HEK, LEBANON

BAR DU PORT, LEBANON Opened December 15 Owner ADDMIND GROUP Executive chef Fady Hanna Head chef Ali Idriss Covers 170 Average price/person USD 50 with alcohol Typical dishes East-meets-

Opened December 1 Owner(s) Ghia holding and Chapter 2 Total investment USD 1.5 Million Executive chef Kamil Bouloot Covers 200

West fusion menu: Lamelles de boeuf infuses au thym, carpaccio de cerf, souris d’agneau confite et legumes croquantes Address Avenue Charles Helou, Saifi, Beirut barduportbeirut.com

Average price/person USD 15 Typical dishes Soujouk kabab, hommos with basil, Baalbakiyeh saj Address Armenia Street, Mar Mkhael, Beirut facebook.com/eldenyehek

CAFÉ CENTRE-VILLE, LEBANON Opened December Owner Boubess Group Concept branding and design WonderEight - Global Branding and Interactive Agency Covers 220 Typical dishes Shrimps wasabi mayo, beef stroganoff,

shawarma platter, banana & caramel dessert, in addition to live coffee roasting with different coffee blends and single origins Address Khan Antoun Bey Square, Beirut Souks boubess.com

CELCIUS LOUNGE AND RARE CUTS, LEBANON

Opened December 17 Owner(s) KH Development, I Group and SP Holding Covers 180 including the outdoor terrace and bars Average price/person USD 55

Typical dishes Steak/ international cuisines Address Petro Paoli Street, Minet El Hosn, Downtown Beirut celciusrestaurant.com

DOOBARA LEBANESE CAFÉ, LEBANON Opened December 2016 Owner(s) Charles Frem, Antoine Rached Total investment USD 850,000 Head chef Mohammed Ahmad

Covers 120 Average price/person USD 25 Typical dishes Lebanese cuisine Address Makdessi Street, Hamra facebook.com/doobaracafe

FEB-MAR 2017 | HOSPITALITY NEWS ME

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NEWS

CHEFS

MEET THE CHEF: TARA KHATTAR

Photo credit: Live True campaign for Dewars

Born and raised in Lebanon before moving to France and earning a Bachelor’s degree in Gastronomy and Restaurant Management from Institut Paul Bocuse, the young Tara Khattar is building her legacy in the US market on solid ground.

Trained in Michelin-starred restaurants, including L'Atelier de JoĂŤl Robuchon in Paris, Khattar is currently a food consultant and a caterer, specializing in personalized high-end dinners and parties.

1. How has being a woman influenced your career?

Being a woman in the professional culinary world is very hard. You have to work harder than men to earn respect. I think this hard work helped me become a better chef; I became faster, perfected my skills quickly and could not afford to make mistakes. I would not want to be anything else. I think being a woman in this industry is awesome; you get to 'kick ass' and look amazing doing it!

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2. How did being Lebanese affect your career?

I think it plays an enormous part in the person and chef I am today. Being Lebanese made me a fighter and very resourceful, both of which are qualities that help me tremendously in the cooking environment. The Lebanese culture is largely present in my style of cooking. I enjoy using the spices in my recipes and love reinventing classic recipes into modern and daring delicate dishes.

3. You ventured into the US because...

Although I love both Lebanon and France, I felt like I needed to be in a more open environment that welcomed experimentation and fueled my crazy, curious personality, in order to achieve my full potential, both as a chef and on a personal level. New York is a city that never ceases to inspire me and push me to my limits. It teaches me new things every day and allows me to be bold and rebellious.

I am simply addicted to it. It allows me to really be who I am and whoever I want to be; no judgment.

4. If you weren't a chef, what would you be?

I cannot imagine myself doing anything else. Cooking is not just what I do; it is who I am. However, if I wasn't working with food, I would be doing something that would require a lot of traveling, working directly with people and ideally, near the ocean.

5. Are you considering any projects in Lebanon?

Lebanon is my country and it will always play a big part in my life. Even though New York is my main residence at the moment, I still go to Lebanon a few times a year and have projects there. I do select catering and consulting and really enjoy it. I am currently working on projects in New York, France and Lebanon and I am willing to go anywhere if the project is interesting. tarakhattar.com

READ MORE ONLINE HOSPITALITYNEWSMAG.COM

FREEKEH, A LEBANESE SUPERFOOD? According to celebrity chef Joe Barza, freekeh is turning into a true superfood. Its taste and smoky flavor, its color and versatility, all contribute to making it a rising star. Freekeh can be used in cold and hot dishes, as well as in main courses and desserts. It also has various health benefits, and is available all year long. Barza said that a large number of countries have already started incorporating freekeh dishes in their offerings. These include Spain, France, Portugal, USA, Canada and Latin America. Many believe that this ingredient would be part of international dishes, similar to the way quinoa made its way into various cuisines. “It is all about the marketing of the product,” said Barza. “We have to do our best to promote it. Personally, I can say that I will be promoting freekeh in the World Summit happening in Monaco, just like I did with Ferra Andrea in Alicante.” On your menu, the best freekeh dishes would be Freekeh Mehchi, Freekeh with Kharouf and Freekeh Salad. joebarza.com

THOMAS GUGLER LEADS WORLDCHEFS Executive Master Chef, Thomas Gugler, corporate director of all kitchens at Arabian Food Supplies (AFS) in KSA, was elected as the president of the World Association of Chefs Societies (Worldchefs) for the coming fouryear mandate, with a first mission to have one ambassador from each member country.

Performance reports which will trace all activities and achievements of all boards comes next.

“I am sure that the entire region will benefit from this title, as I am aware of the various problems and difficulties in the area, as well as the needs and required support. With dedication and a close view, the region can bloom, more and more,” he said.

Supporting young chefs to preserve rural cooking techniques, to grow the entire Worldchefs organization and to build bridges for communication in between all member countries, are also on Gugler’s priority list. The main challenges would be uniting chefs worldwide and to set standards which apply internationally. Gugler believes it is crucial to further orient young chefs in regards to proper education. “We need global standards regarding schooling systems, to let them focus on both theoretical and practical courses,” he explained. The entire Worldchefs team is already working on active committees, to establish a well-connected marketing and PR committee.

Gugler also highlighted the importance of having a Cultural Heritage and Ethnic Cooking Committee for the promotion of local cuisines, with female representation in all committees. worldchefs.org

NEW EMIRATI COOK BOOK Chef Uwe Micheel, director of kitchens of Radisson Blu Hotel, Dubai Deira Creek, and president of the Emirates Culinary Guild, has recently released his cook book, ‘Flavours of Dubai’. The book combines traditional Emirati recipes and modern cuisine, using local produce.

Available on uae.souq.com FEB-MAR 2017 | HOSPITALITY NEWS ME

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NEWS

SUPPLIERS

THE ESSENCE OF

GOOD COFFEE During his visit to HORECA Kuwait, Hospitality News ME had the opportunity to meet with Manuel Sancho, business development manager for Nespresso Middle East and Africa, and ask him about the region’s coffee growing culture

Coffee culture is evolving in the Middle East as gastronomy is moving towards new levels

How can you describe coffee consumption in general and in the MENA region specifically?

Coffee is the second-most traded commodity after oil and it is consumed almost everywhere. This is why we believe in the B2B business, because throughout the world, coffee will be present in all

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hotels and restaurants. The potential of this product is infinite. Coffee is also making its way to bars and restaurants, as chefs, mixologists and sommeliers are increasingly adopting this product in their drinks. Coffee culture is evolving in the Middle East as gastronomy is moving towards new levels. Usually, the final thing you will have after a good meal is a cup of coffee. What you do not want is to have a fantastic meal prepared by a Michelin-star chef and end it up with a bad coffee. It will be the one thing that you remember about your dinner. We are witnessing a growing demand for high-end and gourmet coffee in the Middle East, although the region had already an established coffee culture that was more linked with Arabic coffee. We do not compete with the local coffee culture.

We'd prefer to complement the offering and diversify it.

What type of coffee do MENA clients prefer to drink?

Customers prefer drinking coffee with milk.

Intense coffees are also very popular.

What are your new releases?

Nespresso launched two new capsule flavors - vanilla and caramel - to be part of the permanent range of the B2B, increasing our offering to 13 different varieties. The demand for such flavored coffees is growing in the F&B industry as they broaden establishments’ potential for developing new recipes and eventually, to have higher revenues out of coffee.

It is known that Arabs prefer cardamomflavored coffee. Do you have any intention of adding such a flavor to your range?

Innovation is one of the key drivers of the Nespresso business. A few years ago, we only had seven or eight varieties. Now our range extends to 13. We cannot presume that we will be developing a cardamomflavored Nespresso coffee capsule, but it all depends on the market. We are always trying to innovate and get closer to our consumer.

We might have limited edition coffees that are available in certain regions only. buynespresso.com

Churchill-PRINT.pdf

1 READ 1/30/17 11:45 AM MORE ONLINE HOSPITALITYNEWSMAG.COM

TALAYA TO START EXPORTING BOTTLED WATER IN GLASS GALLONS Lebanese manufacturer of bottled water, Talaya Water Company, has launched the first glass water gallon. The initiative was led

by Marcel Hage, founder and CEO of Talaya Water Company. Hage said, “Our main goal is to create awareness about the importance of using glass gallons for its health benefits, through maintaining the quality of the water and its purity.” Founded in 2009, Talaya began distribution in July 2012 only after having perfected its touch-free bottling method. The glass gallons can be used with any traditional cooler. However, Talaya has utilized a newly designed water cooler to simplify the gallon-loading process in a mechanism modified to combine efficiency with friendliness. Talaya has also encased

the gallons within reinforced baskets which protects them. Hage said that the firm doubled both production capacity and investment to reach USD 10 million to make the advancement. “We are having active discussions to start exporting our range to the Gulf," he said. talayawater.com

COLONEL BEER EXPANDS ITS SPIRITS RANGE The founder of Lebanese microbrewery Colonel Beer, Jamil Haddad, is planning to expand his range of spirits. In two months, his upgraded brewery will start producing gins, whiskies, rums, Cognac and, at a later stage, vodka. The brewery has the capacity to produce 250 liters per day, equivalent to 400 bottles of spirits. Investment in the upgrade, which will expand both the production capacity

and range of spirits produced, is over USD 300,000, secured through Colonel Beer. With the extension, the project will be worth USD 5 million. Haddad won the Business of the Year award from the Brilliant Lebanese Awards, organized by BLC Bank, which supports local talent and entrepreneurship. colonelbeer.com C

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THE VINEGAR MAN Hospitality News ME sat with Lawrence Diggs, vinegar expert, to discuss the production of vinegar in Lebanon

1. How do you assess Lebanese vinegar production?

Lebanese vinegar is considered to be of high quality and attracts consumers worldwide, even though its production may still be linked to traditional methods.

While most production in the country

is limited to traditional apple and grape vinegar, I expect some interesting new vinegars to see the light of day in the coming years. It will be up to the Lebanese people, especially young individuals, to support these efforts in the marketplace.

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2. How do you believe rural development and the Lebanon Industry Chain Development (LIVCD) program have highlighted this industry?

The LIVCD project (a USAID five-year program) aims to help produce vinegar at a lower cost and of higher quality. This will be achieved by shifting from a traditional production method to one that speeds up the process and decreases the level of error.

Adding yeast and Acetobacter for example, will quicken the process and help produce higher amounts of vinegar in less time and cost. The LIVCD also aims to link industries with universities, which will be beneficial for both parties, as the academic community can help solve producers' problems.

3. Where do you see production heading in the local market and internationally?

Vinegar production has great potential to grow in the coming years. Lebanese vinegar can combine both the artisanal and commercial aspects in one product.

FEB-MAR 2017 | HOSPITALITY NEWS ME

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HORECA

PREVIEW

4 REASONS NOT TO MISS HORECA LEBANON As a key meeting place for foodservice and hospitality professionals from across the region, the event has become an essential destination for firms looking to explore fresh markets, pursue new business opportunities and stay one step ahead of the latest innovations and trends. Here are four reasons not to miss it 1

15,000+ PROFESSIONAL VISITORS The four-day exhibition is nothing short of a who’s who in the industry, gathering owners of the leading hotels, the top food and beverage companies, senior level management, key decision makers and trade professionals from across the Middle East. A host of networking sessions and forums provide platforms for valuable business interchange.

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2,000+ OF THE BIGGEST BRANDS More than 350 exhibitors will showcase thousands of the most renowned brands. Firms representing Belgium, Italy, France, Netherlands, UAE, Jordan, Syria, Egypt, Korea and Turkey will present their newest and soon to be released products at HORECA.

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10+ EXCITING DAILY EVENTS HORECA boasts an agenda packed with informative workshops, forums, live cooking demonstrations and much more. Over 500 participants will compete in a variety of contests including the renowned Hospitality Salon Culinaire, which boasts new categories for 2017, the Junior Chef Competition, the Atelier Gourmand, the Lebanese Bartenders Competition, the Lebanese Barista Competition, the Art of Service Competition and the Bedmaking Competition. For the second consecutive year, the Annual Hospitality Forum will spotlight hot topics with industry heavyweights from the region.

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60+ TOP INTERNATIONAL EXPERTS Experts from the world of food, drink and hospitality will attend the 2017 edition of HORECA. Among the high profile guests this year will be three Michelinstar German chef Thomas Buehner and world pastry champion Thierry Bamas from France. Visitors can take advantage of meeting respected figures and benefitting from their industry know-how.

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HOSPITALITY NEWS ME | FEB-MAR 2017

HORECA

REVIEW

HORECA KUWAIT 2017

The sixth edition of the most sought-after show in Kuwait has become a true authority in the foodservice and trade industry Exhibitors, sponsors and visitors were very satisfied. So far, we have received requests for over 15 new exhibitors for next year’s event. The Kuwaiti Scan House attracted many talented young Kuwaitis in the cooking business, underlining a great success and impact Mohamed Najia, Executive Director, Leaders Group

Under the auspices of Minister of Information and Minister of State for Youth Affairs, Sheikh Salman Al-Humoud AlSabah, HORECA Kuwait 2017, the three-day show, opened on January 16. It occupied over 6,000 square meters of the Kuwait International Fairgrounds in Mishref, moving from Jumeirah Messilah Beach Hotel and Spa. The show, now in its sixth year, has pushed its boundaries to become a true destination for industry stakeholders, and a not-to-be-missed melting pot for trends, new products and key business deals. Over 80 exhibitors were brought together under one roof, a healthy 166 percent growth on 2016’s figures. Organized by the Leaders Group Company for Consulting and Development, in collaboration with Hospitality Services, the show ticked all the expectation boxes, attracting over 6,000 attendees.

The transfer to the fair did not have any negative impacts. On the contrary, the show went beyond everyone’s expectations. This year, we insisted on showcasing 28 Kuwaiti food ventures who showcased their business, alongside major players, and benefited from networking channels

We were the gold sponsors of the show for the second year. With the changing dynamics in Kuwait, every entrepreneur wants to be a restaurateur. With this fair, we can get in direct contact with owners. We hope the show gets more international as this will increase the benefits for exhibitors

Nabila Al-Anjeri, General Manager, Leaders Group

Jatin Sahani, General Manager, Al-Othman & Bisher Trd. Co

Among the most interesting addendums was the Kuwaiti Scan House, an interactive digital experience addressing SMEs. Safa Saleh, chief storyteller at Vision Plus, the company behind the concept, said the idea was to support young Kuwaiti entrepreneurs by launching DeeraScan, a new app linking the virtual to the real world. Whenever users see the logo of DeeraScan on any brochure or picture and scan it, they can immediately interact with the picture through Facebook, Twitter, Instagram and other social media platforms.

The fair better accommodates large events. We have nine divisions, and, through this expo, we are targeting our entire food range. This year, we focused on our potato and meat range. Next year, we will have a different focus George Mhawech, Division Sales Manager, Alyasra Foods

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HORECA

REVIEW

SELECTION OF THE FIRST PLACE WINNERS AT HOSPITALITY SALON CULINAIRE COMPETITION

PARTICIPANT

Best Burger Competition

Gamini Priyantha Lambiyas, Symphony Style Hotel

Hot & Cold Arabic Appetizers

Ahmad Aboulwaffa and Jual Shames Alhaque, Hilton Kuwait Resort

Ice Carving Competition

W.W. Lalantha Hasendra Fernando, Gourmania

Meat Dish Competition

What HORECA has achieved in Beirut throughout the years is now happening in Jordan, KSA and Kuwait. Chefs are showcasing their amazing talents in various categories. With proper and intensive training they can quickly upgrade their skills and professionalism Thomas Gugler, President Worldschefs

Beral Polekironi and Mohamad Akbar, Jumeirah Messilah Beach Resort

Pasta Competition

Rakesh Shankar, Sheraton Hotel

Sushi Competition

Francis Milar Anora, Maki Kuwait

Three Plated Dessert Presentation

Chandra Kumara Jagodage, Jumeirah Messilah Beach Resort

Wedding Cake

Hussina Fazier, MMC

Bread Creation and Morning Goods

Hafid Boukouch, Bread and Spice

Chocolate Carving

Tarak Das, Sheraton Hotel

Asian Cuisine

Edward George, Sheraton Hotel

Fruits & Vegetables Carving

Chintaka Saduruwan, Symphony Style Hotel

Six-course Set dinner menu

Edward George, Sheraton Hotel

Cold Canapes

Mohamed Nessar, Sheraton Hotel

Cold Platter of fish, poultry or meat

Chaminda Keerthi Lokuge, Symphony Style Hotel

Lea Tanagon Culaway, from Espressamente CafĂŠ, was the first prize winner of the Kuwait Barista Competition by illy & Nuova Simonelli.

Participants had to prepare three drinks, including a single espresso, a decorated cappuccino and a signature beverage.

With the drop in oil prices, the HORECA channels are more interesting to investors, which is making the show more attractive. This year's exhibition is at a brand new level. It has premium displays, which reflects the shift happening in the market. Through the show, we aim to connect with our clients, eyeing potential deals Ahmad Morad, Brand Manager, Kuwait Proteins

* Sheraton Hotel won seven gold medals

Food business is becoming a trend in the region, driving more interest in this industry. The show's chefs are essential as they are among our main bakery products clients Oman Fahmy, Group Vice Chairman, Bakeland Egypt

NEW PRODUCTS SPOTTED AT THE SHOW

Alpro Coconut milk Refreshing coconut with the light taste of rice, with only 40 calories per glass and no added sugar.

Also available in chocolate flavor. kuwaitproteins.com

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Pom Essence Autumn Long-lasting air freshener; eliminates unpleasant odors. arabcleaning.com

HOSPITALITY NEWS ME | FEB-MAR 2017

MUMS An eco-friendly food waste dissolution device, using microorganisms to decompose food waste and return it to nature. mumsglobal.com

Ponthier Frozen Chestnut Puree Located in South West France, Maison Ponthier produces fine fruit and vegetable purees. azzadgroup.com

EVENTS

WHERE TO BE SEEN

HOSPITALITY EVENTS ON

THE HORIZON

With a plethora of events taking place this season, here are our picks of the best in the region

GULFOOD 2017 26 FEBRUARY - 2 MARCH, DUBAI Celebrating its 22nd edition, Gulfood, the world’s largest annual F&B exhibition, is anticipating over 95,000 visitors and 5,000 exhibitors from various industry categories during the five-day show. This year’s show will feature The Emirates Culinary Guild International Salon Culinaire, the largest single-entry chef's competition in the world. Evaluated by a panel of international experts and mandated by the World Association of Chefs Societies, the Salon Culinaire provides credible industry recognition to more than a thousand master chefs, pastry chefs, cooks and bakers. The show will also host the Barista Masters, welcoming coffee experts from around the world in a major coffee brewing championship supported by the Speciality Coffee Association of Europe. Gulfood will also bring the innovative Virtual Supermarket, a new interactive virtual shop window to the standout products and cutting-edge technologies. The show will also host the eighth Innovation Awards recognizing excellence and creativity within the global food and drink industry. The Halal World Food will return for its fourth edition. This major global trading platform generates investment opportunities for international F&B businesses looking to capitalize on the burgeoning halal sector that is witnessing significant growth in both Muslim and non-Muslim countries across the world.

Where: Dubai World Trade Centre, Dubai gulfood.com

MARCH INTERNORGA 17 - 21, GERMANY International trade fair for the hotel, restaurant, catering, baking and confectionery trades Hamburg Messe und Congress GmbH internorga.com

APRIL FOODEX QATAR 2 - 4, QATAR First international exhibition for food, beverage and process technology Al Fajer Information & Services foodexqatar.com THE HOTEL SHOW SAUDI ARABIA 4 - 6, KSA Exhibition for hotel equipment, technology and services, presenting food & hospitality Dmg: Events Middle East & Asia thehotelshowsaudiarabia.com HORECA 4 - 7, LEBANON The annual hospitality and foodservice event in the region Hospitality Services sarl horecashow.com GLOBAL RESTAURANT INVESTMENT FORUM 10 - 12, DUBAI The forum showcases the hottest restaurant concepts from around the globe Bench Global Business Events restaurant-invest.com CAKE INTERNATIONAL 22 - 23, UNITED KINGDOM The cake decorating and baking show ICHF-International Craft & Hobby Fair Ltd. cakeinternational.co.uk SEAFOOD EXPO GLOBAL 25 - 27, BELGIUM International trade fair Diversified Communications seafoodexpo.com/global ARABIAN TRAVEL MARKET 24 - 27, UAE The global meeting place for the travel trade Reed Exhibitions arabiantravelmarket.com HOTEC ME 25 - 28, AZERBAIJAN A series of one-on-one meetings over two dedicated business days Questex McLean Events International hotecglobal.com

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DINE EXHIBITION AND CONFERENCE 2017

ARABIAN HOTEL INVESTMENT CONFERENCE (AHIC)

4 - 5 MARCH, DUBAI

25 - 27 APRIL, DUBAI

Showcasing over 150 products and services dedicated to restaurants and cafés, and with over 7,000 visitors expected to attend, the Dine Exhibition & Conference will be complemented by 10 multi-track conferences, on franchising, licensing, build and design and equipment technology. Powered by Zomato, the event will bring together hundreds of industry leaders, experts, chefs, business owners and food enthusiasts. The show is organized by ATEX International Exhibitions, a certified member of UFI (Global Association of the Exhibition Industry) and IAEE (International Association of Exhibitions and Events).

Where: The Address Hotel, Dubai Marina, Dubai dineexhibition.com

Now in its 13th edition, the Arabian Hotel Investment Conference (AHIC), renowned for its loaded program tackling all the hot button issues of the industry, class A speakers and experts, represents a major pool for networking opportunities and potential business deals for the industry’s stakeholders. Last year’s conference brought together nearly 700 people from 38 countries. In its 2017 version, AHIC’s attendees will share knowledge with over 60 international speakers who are prominent members of the hotel investment community. Their expertise, practical advice and forecast will provide attendees with the latest information on development, trends and best practice in the hotel investment industry.

Where: Madinat Jumeirah, Dubai arabianconference.com

The art of great cooking The german specialist in professional cooking technology

MKN Middle East & Africa Phone: +97 150 5 58 74 77 E-Mail: rac@mkn-middle-east.com

www.mkn.eu

FEB-MAR 2017 | HOSPITALITY NEWS ME

37

EVENTS

SEEN & HEARD

RECAP

Some of the industry’s biggest events took place recently. Here’s what you might have missed

SIRHA SETS FRANCE ON FIRE Sirha, the world event for catering and hospitality professionals, took place at EUREXPO, Lyon, from January 21 - 25, attracting over 190,000 visitors. With over 3,000 international exhibitors and brands, 11 sections dedicated to food products, equipment and services for food service professionals, Sirha embodies the world market for catering, hotel and food services. The event brought hundreds of new products and services, as well as exclusive dedicated stages, showcasing the latest trends in the market. The finals of the Bocuse d’Or and Coupe du Monde de la Pâtisserie contests

are perfect illustrations of this. The USA won the gold medal at the Bocuse d’Or finals, with Norway coming second and Iceland third. The French team were crowned the champions of the Coupe du Monde de la Pâtisserie, followed by Japan and Switzerland third. A total of 22 pastry teams competed from the Arab World, Algeria, Egypt, Morocco and Tunisia. When it came to the Global Young Chef Challenge, German chef Marianus Von Hörsten came first, Swedish chef Eric Seger second and Singaporean chef Lynette Tay, third. sirha.com

SIGEP SWEETENS THE WORLD ONCE AGAIN

WINE ENTHUSIASTS AND BUSINESSMEN FLOCK TO VINITECH-SIFEL 2016 Almost 46,000 professionals visited the fair at the Bordeaux Exhibition Centre, from November 29 to Dec 1, which brought together 850 exhibitors from the wine industry. Delegations from 70 countries, ranging from Bolivia and Russia to the US, Australia and South Africa, attended. The show witnessed a four percent increase in visitor numbers, including highlyqualified attendees. The show proved to be a major trade platform for the inking of a large number of deals. In addition, several meetings were organized at the fair during the Business Meetings events, with around 100 counted, half of which involved international players. vinitech-sifel.com

Over 208,000 trade visitors from 170 countries attended the 38th edition of SIGEP, which took place from January 21 - 25 at the Fiera di Rimini.

A total of 1,250 companies showcased their latest innovations at the international confectionery expo, which was held simultaneously with AB TECH EXPO, dedicated to artisan bakery. The culminating events of the 2017 program included the Junior World Pastry Championship, won by

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Japan; the German Challenge, at which 62 German gelato makers competed for nine places at the Berlin date of the Gelato World Tour; the finals of Bread in The City, won by Italy; the Ultimate Chococake Award, dedicated to the chocolate work professionals; and the Italian Barista Championships - the only national appointment and includes seven competitions valid for the international World Coffee Events circuit. sigep.it

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P. 42

THE HOSPITALITY NEWS HUNDRED

P. 44

THE FORMULA FOR FRANCHISING SUCCESS

P. 48

GOING GLOBAL

MENA FRANCHISE OPPORTUNITY REPORT 2017

P. 50

HOW TO FIND THE RIGHT PARTNER

P. 54

GO SMALL TO GO BIG!

P. 56

IS YOUR RESTAURANT READY TO FRANCHISE?

P. 58

FRANCHISORS’ DOS & DON’TS

P. 60

4 MARKETING INGREDIENTS FOR A SUCCESSFUL FRANCHISE RECIPE

P. 62

WHAT WENT WRONG?

P. 64

FRANCHISING MIDDLE EAST

P. 68

LEAD BY EXAMPLE

WHAT IT TAKES TO BE SUCCESSFUL When considering whether or not to invest in a food and beverage (F&B) franchise, information is your greatest asset. For individuals who can handle pressure, face competition head on, work tirelessly for long hours and dedicate themselves to following a business model that is refined, market-tested and long appreciated by customers, the franchising system offers an exciting and rewarding business opportunity. However, this is the mindset that’s required, meaning there’s a lot to think through prior to investing.

The Hospitality News ‘MENA Franchise Opportunity Report 2017’ makes the ideal starting point, both for the insight it offers into the regional market and which brands could or would do well here, as well as its established foothold in the local Lebanese

franchise market, given that homegrown concepts have a proven track record for success. The consultants, association leaders and experts featured all provide astute and reliable advice to guide you every step of the way. Moreover, all of the franchises included provide a level of transparency that enables prospective franchise owners to make an informed decision. Our report also sheds light on the challenges franchisors might face, specifically in the Middle Eastern market, when it comes to choosing the right partner, dealing with poor management and building brand equity.

The F&B franchise industry can indeed be rewarding, but before taking the plunge, here’s how to make sure you’re equipped with the tools for success…

FEB-MAR 2017 | HOSPITALITY NEWS ME

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SPECIAL REPORT

1. 5 NAPKIN BURGER Origin New York, US 5napkinburger.com

2. A. NOSTE Origin Paris, France a-noste.com

3. ABD EL WAHAB* Origin: Lebanon Food type Traditional Lebanese cuisine ghiaholding.com

4. ABDUL RAHMAN HALLAB & SONS 1881 Origin Lebanon hallab.com.lb

5. ABOU EL SID Origin Egypt abouelsid.com

13. BAB IDRIS* Origin Lebanon Food type Authentic Lebanese cuisine babidris.com

14. BABEL Origin Lebanon babelrestaurant.com

caffestern.fr

16. BATCHIG* Origin Lebanon Food type Lebanese dishes with an Armenian twist.

28. CAFÉ YOUNES* Origin Lebanon Food type Restaurant-café

batchig.com

17. BAYRUT STREET FOOD Origin Lebanon Food type Traditional Lebanese street food

ghiaholding.com

albaladrestaurant.com

9. AL FORNO Origin Kuwait alshaya.com/brands/food/al-forno

10. AL-SULTAN BRAHIM* Origin Lebanon Food type Upscale Lebanese seafood alsultanbrahim.com

11. AL-TAZAJ Origin KSA

18. BEIRUT BY GRILL Origin Lebanon Food type Grill and shawarma 19. BEIT WARD Origin Lebanon 20. BONCHON KOREAN CHICKEN Origin Korea bonchon.com.kh

21. BOUBOUFFE* Origin Lebanon Food type Lebanese brasserie boubouffe-intl.com

22. BURGER BOUTIQUE Origin Kuwait burgerboutique.com

23. CAFFÉBENE Origin South Korea caffebene.co.kr

12. AYYAME Origin Kuwait

24. CAFÉ BATEEL Origin UAE

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cafeyounes.com

29. CASPER & GAMBINI’S* Origin Lebanon Food type Upscale casual dining

bateel.com

HOSPITALITY NEWS ME | FEB-MAR 2017

36. CURLI-Q* Origin Lebanon Food type Dessert Shop, café and bakery food-gallery.com

37. DANDY Origin Lebanon dandychocolate.com

38. DIWAN BEIRUT* Origin Lebanon Food type Traditional Lebanese cuisine diwanbeirut.com

39. DOS CAMINOS Origin New York, US doscaminos.com

40. DUCK ME Origin Paris, France

casperandgambini.com

duckme.fr

30. CHOPSTICKS Origin Lebanon

41. DUO Origin Lebanon Food type French, Italian and Japanese

chopstickslb.com

31. CHOP’T CREATIVE SALAD Origin New York, US choptsalad.com

ghiaholding.com

42. EATALIAN* Origin Lebanon Food type Italian eat-eatalian.com

facebook.com/BeitWard

taza.com.sa

ayyame.co.kw

alghalia.com facebook.com/CafeLilou

bareburger.com

facebook.com/AhwakCafeLB

8. AL BALAD Origin Lebanon

26. CAFÉ LILOU Origin Bahrain

27. CAFFÈ STERN Origin Paris, France

bayrutstreetfood.com

albaba-sweets.com

cafe-blanc.com

15. BARE BURGER Origin New York, US

6. AHWAK* Origin Lebanon Food type Trendy Lebanese restaurant 7. AL BABA SWEETS Origin Lebanon

25. CAFÉ BLANC Origin Lebanon

32. CILANTRO Origin Egypt cilantrocafe.net

43. EGGSPECTATION Origin Quebec, Canada eggspectation.com

33. CLASSIC BURGER JOINT* Origin Lebanon Food type Burgers that cook up a gourmet storm

44. EL DENYE HEK Origin Lebanon Food type Traditional Lebanese restaurant

cbj.me

ghiaholding.com

34. COLOMBIANO COFFEE HOUSE Origin Lebanon colombianocoffeehouse.com

45. EM SHERIF Origin Lebanon Food type Fine-dining Oriental cuisine

35. CREPAWAY* Origin Lebanon Food type Fast-casual multi-cuisine

46. FALAFEL & MORE* Origin: Lebanon Food type Middle Eastern cuisine

crepaway.com

emsherif.com

falafelandmore.com

THE ONES TO WATCH

THE HOSPITALITY NEWS

HUNDRED The right opportunity is out there, but deciding which F&B franchise is right for you begins with Hospitality News ME

71. MOULIN D’OR Origin Lebanon Food type Bakery and pastry moulindor.com 72. NASMA* Origin Lebanon Food type Blend of Lebanese delicacies nasmabeyrouth.com 73. NATIVE FOODS CAFÉ Origin Palm Springs, US nativefoods.com

frenchbakery.ae

48. FROM THE TREE* Origin Lebanon Food type Flavored non-fat frozen yogurt facebook.com/FTT.fromthetree

49. GRAND CAFÉ Origin Egypt facebook.com/pg/GrandCafeEgypt

50. HAKINI BISTROT LEBNENI Origin Lebanon hakinilebneni.com

51. HOPDODDY Origin Texas, US hopdoddy.com

52. JUSTE Origin Paris, France juste-producteur.com

53. KABABJI Origin Lebanon kababji.com

54. KEIF Origin Lebanon keifrestaurant.com

55. LE BOTANISTE Origin New York, US lebotaniste.us

56. LA PARRILLA Origin: Lebanon Food type Fine dining grill house and bar la-parrilla.com

57. LA POSTA Origin Lebanon laposta-beirut.com

58. LEIL NHAR Origin Lebanon leilnhar.com

59. LEILA MIN LEBNEN* Origin Lebanon Food Type: Authentic Lebanese dishes leilarestaurant.com

60. LORD OF THE WINGS Origin Lebanon

74. NORTH ITALIA Origin Arizona, US northitaliarestaurant.com

madeleine.sa

eatpdq.com

62. MALAK AL TAWOUK* Origin Lebanon Food type Lebanese quick service restaurant

79. PICK YO Origin Kuwait

63. MAKI Origin Kuwait olivermaki.com

64. MAINLAND POKÉ Origin California, US mainlandpoke.com

65. MARGHERITA PIZZERIA DEL QUARTIERE DAL 1959 Origin Lebanon pizzeriamargherita.com

66. MAYRIG* Origin Lebanon Food type Armenian cuisine mayrigbeirut.com

67. MILK TRAIN CAFÉ Origin London, UK facebook.com/milktraincafe

68. MODERN MARKET Origin Colorado, US modmarket.com

69. MOKA & MORE* Origin Lebanon Food type Café mokaandmore.com 70. MORI SUSHI Origin Egypt mori-sushi.com

94. TCHE TCHE Origin Jordan tchetchecafe.com

95. THE BROS Origin Lebanon

77. PAIN D’OR Origin Lebanon 78. PDQ Origin Florida, US

malakaltawouk.com

sushiko.co

overjar.com

61. MADELEINE Origin KSA

91. SQIRL Origin Los Angeles, US sqirlla.com

93. SUSHI KO Origin Lebanon

76. OVERJAR Origin Kuwait

paindorinternational.com

90. SPIN THE HEN Origin Lebanon Food type Rotisserie spinthehen.com

sliderstation.com

nusr-et.com.tr

lordofthewings.com

shrimpy.com

92. SLIDER STATION Origin Kuwait

75. NUSR-ET Origin Istanbul, Turkey 47. FRENCH BAKERY Origin UAE

89. SHRIMPY Origin Kuwait

Instagram: thebrosleb

96. THE CHOCOLATE BAR Origin Kuwait thechocolatebar.com.kw

97. TOMATOMATIC* Origin Lebanon Food type Pizza tomatomatic.com

pick-yo.com

98. WATERLEMON Origin Lebanon

80. POKINOMETRY Origin California, US

h2o-lemon.com

pokinometry.com

99. WOODEN BAKERY* Origin Lebanon Food type Bakery and pastry

81. PIE FIVE PIZZA Origin Texas, US piefivepizza.com

woodenbakery.com

82. RAFAAT HALLAB & SONS 1881 Origin Lebanon hallab.com 83. REEM AL BAWADI Origin UAE reemalbawadi.com

84. RICE TROTTERS Origin Paris, France ricetrotters.com 85. SEMSOM Origin Lebanon semsom.com 86. SHAKESPEARE AND CO Origin UAE

100. ZAATAR W ZEIT Origin Lebanon zaatarwzeit.net

The Hospitality News Hundred list is a compilation of the staffs own research, winners of European restaurant awards, suggestions from leading consultants and members of the Lebanese Franchise Association (LFA).

shakespeare-and-co.com

87. SHAWERMA AL DAYA’A Origin Jordan aldayaa.net

88. SHAWARMANJI Origin Lebanon shawarmanji.com

* THIS BRAND'S FACT SHEET IS AVAILABLE STARTING ON P. 71

FEB-MAR 2017 | HOSPITALITY NEWS ME

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SPECIAL REPORT

FRANCHISING

THE FORMULA

FOR FRANCHISING SUCCESS The prevalence of franchised brands in the Middle East’s food and beverage (F&B) industry proves again that franchising can indeed be a winning formula. Nagi Morkos managing partner at Hodema consulting services, explains Mouthwatering success stories, both from foreignborn and locally-developed companies, can be found across the region, attracting investors keen to grab a slice of the pie. The right ingredients to whet your appetite are there, if you know the recipe.

A BUSINESS FOR YOURSELF, NOT BY YOURSELF In the Middle East and North Africa (MENA) region, the sector, which is largely made up of businesses operating in the F&B industry, is now worth USD 30 billion and growing, according to the Middle East & North Africa Franchise Association (MENAFA). The favorable regulations found in most countries across the region, coupled with a young consumer market, up-to-date with the latest international trends, are a key attraction for franchisors looking to establish their brands and expand their operations. More homegrown concepts are also trying to build a name for themselves abroad. On the opposite side of the deal, franchisees are seeking profitable business opportunities with

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the support of internationally acclaimed brands. And although the profits are not as attractive as in the selfdeveloping option, franchising has the benefit of not requiring a large upfront investment.

MARKET ANATOMY American high street fast-food eateries, such as McDonald's (928 outlets), KFC (753), Subway (254) and Hardee's (335) lead the competition throughout the MENA region, including Turkey, followed by cafés such as Starbucks (744) and Dunkin' Donuts (472). Pizza brands like Domino's or Pizza Hut (416) are also a hit. And with demand staying strong, the offer is about to diversify, with several burger chains opening, especially in the Gulf.

Saudi Arabia, Kuwait, Qatar and the UAE are undoubtedly the region’s franchising champions, being home to numerous popular eateries, and always on the lookout for the next big thing. Highnet-worth citizens are ready to invest in rewarding businesses and also fork out significant amounts of money to eat well and in style. Giant operators, such as Al Shaya, Americana and Azadea, operate hundreds of outlets and provide their firepower to foreign companies willing to enter the local market.

EXPORTING YOUR SUCCESS Although there are more brands coming in than going out of the region, some local investors are creating concepts with the sole purpose of franchising them as quickly as possible. But competition from international

SPECIAL REPORT

FRANCHISING an established reputation when it comes to concepts, cuisine and service. However, their competitive advantage is in the plate: Lebanese franchisors bring the best of both worlds, mixing their knowledge of local tastes with outside influences, which range from international flavors, such as Casper & Gambini's (operating today in 10 countries - Kurdistan, Bahrain, UAE, Nigeria, Oman, Jordan, Qatar, Egypt, Kuwait, KSA), Margherita pizzeria (KSA, Kuwait, UAE) and Armenian cuisine with Al Mayass (Qatar, UAE, Kuwait, KSA, US) and Mayrig (UAE, KSA). Lord of the Wings (Egypt, Ghana, KSA, Kuwait, Qatar, USA, Australia), Brgr Co. (UK) and Chopsticks (KSA, UAE), among others, are strengthening their presence abroad, with some already in Europe and eyeing the US. Lebanese food restaurants remain the most successful franchises with concepts such as Em Sherif (UAE, Kuwait), Burj Al Hamam (Kuwait, KSA, Qatar, UAE, Jordan), Abd el Wahab (UAE, KSA, Bahrain, Egypt, Qatar), Karam (UAE, Jordan, KSA), Leila (KSA, UAE, Qatar, Kuwait, Egypt, Bahrain), Semsom (Oman, Kuwait, KSA, US).

brands is tough, and small businesses have to stand up to the aggressive expansion strategies and high operational capital associated with the big names. With fierce competition around the corner, homegrown brands are striving to find a creative way to establish themselves. Smaller structures usually attract private investors and equity funds to help them offset their lack of financial leverage. They also keep a close eye on demand to fill gaps in the market, whereas big names benefit from their reputation. And although they do not always have access to prime locations, they turn to more creative and alternative options.

A LEBANESE FLAIR Today, however, the region’s homegrown concepts often hail from Lebanon. This trend is being driven by the will of the local F&B developers to beat the small size of the Lebanese market and avoid political instability. Thus, taking on the world becomes a natural sequel to operating their brands. From Beirut, the world usually begins in the Gulf, where they are met with a charm offensive from local investors: Lebanese brands are highly appreciated, since they have already passed the test of success back home. The country also benefits from

selected carefully and respect the brand's criteria to the letter, from the quality of food, to regulations and service, leaving nothing to improvisation. Exporting know-how is not innate and has nothing to do with the talents of a chef. The franchisor has to keep a careful eye on all aspects and outline both parties' roles and responsibilities, from suppliers and brand management, cooking and local taste habits, to graphic identity and human resources. Hiring and training the right people is key to securing a sustainable business.

Lebanon's Boubess Group has found a way around it, by operating its own brands abroad and acquiring international franchises (Le Relais de l'Entrecôte, Benihana, Café de Flore, Angelina, The Butcher Shop & Grill) simultaneously. So, with the franchise business in full bloom in the Middle East, popular global names may actually face stiffer competition from local eateries in a David and Goliath-style face-off, but with both winning in their own league.

AVOIDING THE PITFALLS But as is to be expected, franchising is not all roses. The franchisee needs to be

hodema.net

REGIONAL EXPANSION OF SELECTED F&B HOMEGROWN BRANDS

KUWAIT UAE

OMAN UAE

LEBANON UAE KSA BAHRAIN EGYPT QATAR

SHRIMPY BURGER BOUTIQUE SLIDER STATION

KSA QATAR

AL FORNO KUWAIT UAE BAHRAIN LEBANON

EGYPT

JORDAN JORDAN KSA KUWAIT QATAR UAE

ABD EL WAHAB LEBANON ZAATAR W ZEIT

KSA EGYPT JORDAN QATAR KURDISTAN NIGERIA UAE KUWAIT BAHRAIN OMAN

LEILA CASPER & GAMBINI'S LORD OF THE WINGS

BAHRAIN

EGYPT GHANA KSA KUWAIT QATAR US AUSTRALIA

UAE KSA QATAR KUWAIT BAHRAIN EGYPT

UAE KSA KUWAIT OMAN PALESTINE LEBANON EGYPT IRAQ

TCHE TCHE SHAWERMA AL DAYA'A UAE

KSA

UAE

KUWAIT

KSA UAE BRAZIL

ABOU EL SID CILANTRO MORI SUSHI

JORDAN KSA UK KSA SUDAN

GRAND CAFÉ

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HOSPITALITY NEWS ME | FEB-MAR 2017

KSA UAE

LILOU

AL TAZAJ BAHRAIN EGYPT KUWAIT BAHRAIN UAE

KUDU MADELEINE HERFY

KSA KUWAIT UK QATAR

CAFÉ BATEEL REEM AL BAWADI

BAHRAIN

KSA KUWAIT

FRENCH BAKERY SHAKESPEARE & CO

KSA BAHRAIN LEBANON JORDAN OMAN BAHRAIN US

SPECIAL REPORT

FRANCHISING

GOING

GLOBAL committed to spending resources now to see a return over the long term?

3. Analyze markets and pick the right country. Franchisors that jump at the first international deal that presents itself tend to regret it.

Robert Cresanti, president 4. Decide on the right development model. and CEO of the International Franchisors growing internationally use a Franchise Association (IFA), spectrum of international development highlights strategic steps that models which all have their trade-offs.

MENA concepts must consider Choosing the right model can make the difference between success and failure. if planning to extend their 5. Understand what you need in an reach further afield 1. Ask yourself why your franchise should expand across borders. Growing internationally tends to be more expensive, more complicated and yield a slower financial return than domestic growth.

Maybe going global isn’t the right move.

2. Do not go international until you have the necessary resources and corporate buy-in.

Will your support and training teams be able to do a good job working with franchisees in another country? Is your entire company

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international franchisee. It’s not just a matter of finding an investor; you need to find the right franchisee for your brand. Think about variables, like the franchisee’s experience and passion for your business. Don’t only focus on financials.

6. Identify the right strategies for finding franchisees. This will depend on your development model and resources.

Approaches used by franchisors range from advertising and exhibiting at expos to networking at conferences and working with consultants and brokers.

7. Conduct due diligence before signing agreements with any international franchisee. It’s more difficult to keep tabs on international franchisees and if things go wrong, they are usually harder to fix. Outside of your home country, the reputation of your franchisees will become your reputation.

8. Understand the variables involved in opening in the new country and have a plan.

Elements of localization to consider include everything from culture and tastes to laws, politics and supply chain.

9. Join IFA to make your company’s expansion safer and simpler through enhanced credibility, support, education, development resources and more. The IFA has represented and protected the interests of the franchise community since its inception in 1960.

10. Attend IFA’s convention, the premier event in franchising to learn what’s involved in depth, come up to speed on best practices, network with leaders in the franchise community and find expert help. franchise.org

SPECIAL REPORT

FRANCHISING

HOW TO FIND THE RIGHT PARTNER

TRUST IS KEY Whether you are finding a joint-venture partner, or an investor, or a franchisee, make sure you get along before any other consideration takes place. If the chemistry and understanding are there, all business issues can be resolved. My dad always used to say: “If you do not trust a handshake, do not sign a contract”, and I still believe in this whole-heartedly.

MIND THE CONTRACT

Finding the right business partner, whether in a franchise or otherwise, is related to chemistry and compatibility of character with the potential partner, and, most importantly, trust.

Daniel During, principal and managing director of Thomas Klein International, tells us how to make it happen

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Contracts and formal agreements serve the purpose of clarifying doubts, and should, when something goes wrong or turns nasty later on, be the backup you rely on. You do not really look at the contract in the day-today business relations with your partner, and I have found that often, both parties go well beyond the contract stipulations. On many occasions, you may do things for the other person that you don't need to do, just for the sake of maintaining the relationship, and mostly you do so willingly because of the good relationship you have with them.

GOOD WILL The second most important element in any business relationship is the good-will of your potential franchisee. He or she may not always have the necessary knowledge to operate a franchise, but if there is willingness to learn, it is sometimes better than having someone who may have the knowledge, but is not willing to implement it.

THE ‘TECHNICALLY’ BEST BUSINESS PARTNER IS: • Ideally you want them to have a proven record of operating similar food and beverage concepts. Operating fast-food outlets is obviously very different to operating a premium or casual-dining restaurant. Not only are the requirements and the skills set required to operate these types of outlets different, but the people at the front, who will be dealing with your guests, will also be considerably different, both in character and skills.

• In addition to the professional ability of your partner, you should also look at their financial capability. It is crucial for you to first look at your business expansion plan, and then analyze whether your potential franchisee has the financial capability to grant such an expansion plan. If the franchisee does not have the finance available immediately, you need to define whether your potential franchisee can come up with the necessary funds to grant such an expansion, and also, how they will obtain the funds or the loans required.

• At this point you really need to ask yourself the following crucial questions: ‘Do I want to work with a franchise partner who does not have the funds available immediately?’, ‘Will the franchisee be able to obtain the required finance externally?’ A word of warning: Be very careful in choosing a business partner

who needs to finance future expansion plans, as that could involve paying high interest rates or mortgages, something that will eat from the profitability of the business.

• Another consideration is whether you are dealing with an individual or a group of investors. It can be risky if you are dealing with the manager of a group and you do not know the investor personally, as all the factors will be related to who, ultimately, calls the shots. Managers can change too, while the owners, in general, remain the same. Make sure you know who makes all the financial decisions, and who is ultimately, the final decision-maker.

If you do not trust a handshake, do not sign a contract • Finding an ethical partner with a proven track record, and whose values are in line with yours, is also key. There are many things that can go wrong or get misguided over time, and it helps to know the actual investor or board director personally, in case something ‘sensitive’ ever happens.

• It is important to define your expansion strategy well before choosing a business partner or partners. This will determine whether you want to strategically have one partner for an entire region or whether you want to have a different partner in each country. The advantage of having one partner per region is that it gives you less of a headache, as you only have to train one franchisee and deal with only one person.

It therefore demands fewer resources from you. In theory, when you have one partner, once the systems are in place, the expansion has the potential to be exponential and things should operate smoothly. However, if the partner proves to have not been the right one, then you will have no good partners in the entire region. Putting all your eggs in one basket can sometimes be dangerous…

• Having separate partners in a region means you will require a bigger support team to manage them all. However, you can expand faster, as each franchisee will be opening simultaneously. A variety of partners in a region also gives you the advantage of being able to charge multiple individual country fees, rather than relying on only one partner who will be negotiating a lower single territorial fee.

IN SUMMARY Before you approach a franchisee (or reply to one who approached you), I recommend you focus on your requirements and expectations regarding expansion. Then value the potential partner’s financial capability, his business ethics, area of coverage and experience in the business.

Once you have strategically shortlisted your potential partners based on the four criteria above, meet them over coffee and see how the conversation goes.

ABOUT THOMAS KLEIN INTERNATIONAL Established in 2001, Dubai-based Thomas Klein International (TKI) delivers a complete range of design, consulting and management services for investors and operators in the hospitality, entertainment and leisure sectors throughout the Middle East and beyond.

thomaskleingroup.com

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GO SMALL

TO GO

BIG! As franchising is a very tempting business model throughout the world and the Middle East, choosing the right concept is key to the entire process. Raja Nasri, managing partner at N4TC, a hospitality consultancy firm, speaks about adopting the right strategy when planning to push boundaries beyond borders

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HOSPITALITY NEWS ME | FEB-MAR 2017

AN ALTERED MARKET

WHAT THE FRANCHISEE GETS

Back in the day, large restaurant concepts, especially those imported from the US, for example, such as TGI Fridays Restaurant & Bar, The Cheesecake Factory, P.F. Chang’s, and Chili’s among others, were found everywhere. More recently, the trend is shifting towards single or mono-unit developments, including homegrown outlets that are making their mark on the hospitality scene. These concepts are driving a trend towards smaller, more focused concepts, which are easy to duplicate and fit within the franchise scheme. In Lebanon, for example, young concepts, such as Breakfast Barn, offering healthy food items, sandwiches, yogurts and fruit cocktails, and Frank Wurst, a hot dog concept developed in caravans or kiosks, are great examples of small-unit outlets standing out from the crowd and making a good impact. Such places turned into true influencers. Lebanese restaurants that used to have large outlets are now developing smaller ones with a more modern look and feel, while preserving their traditional quality and standards. These include Fawzi by Burj Al Hamam and Abdel Wahab Bistro, offering the Mezza Bar for convenient business meals. Shortly after the opening of the outlet, or even prior to completing the first year of operations, a reasonable number of potential franchisees would likely want to be part of the brand’s expansion, especially when the group behind the concept has industry experience.

Besides the benefits found within the traditional franchise agreement, the franchisee would acquire a freshly developed concept for lower fees. He or she will also be able to adapt the concept, if there is a need, as it is still young and flexible. Additionally, there is a possibility to invest in the mother company and become a strategic shareholder. The franchisee is also able to group concepts that complement each other, such as oriental-western sweets and ice-cream, under one roof.

WHAT THE FRANCHISOR GETS The franchisor can move to obtain the cooperation of a partner willing to expand and accompany the progress of the brand right from the early stages. They will also be able to increase the value of the asset in case of loan requests, while working on a progressive fee structure based on outlets opening. Besides the lower operational costs, the franchisor can accelerate the setup of the organization through hiring the right profiles quickly, instead of waiting for the brand to become well established.

A small restaurant concept that is specialized in one F&B offering is easier to opertate and more appealing to franchise

GURUS WITH THE SAME APPROACH Even though it’s irregular and conflicts with some of the franchise business models, several mega-franchisees are adopting the same strategy. Alshaya’s Shake Shack, Katsuya and even Cheesecake Factory were originally multi-unit brands and were much smaller than other wellestablished international concepts. Another confirmation of the concept of small outlets becoming more successful is the strong wave of street food festivals that kicked off in Lebanon with ‘Souk Al Akel’ (The Food Market). The souk was initiated by a blogger who asked young, dynamic and unconventional food lovers to gather once a week in a high-traffic district. The recurrence of these gatherings transformed many of the kiosks into a standalone concept. They are even being ‘asked out’ for franchising at a rapid rate. Finally, this entire trend is a real ‘quick-win’, as well as a ‘win-win’ game, as it puts the judgment ball in the customer’s playground.

n4tc.com

Franchising has always been associated with the entrepreneurial spirit. The idea of taking an idea and making something with it financially, has been a major selling point of the franchise sector. The allure of starting your own business, self-employment and making your own work hours has drawn people to franchising. There are numerous success stories of people with a vision that have made fortunes in the franchise sector, either by creating their own unique idea or purchasing a franchise that has already been established

FEB-MAR 2017 | HOSPITALITY NEWS ME

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FRANCHISING

IS YOUR RESTAURANT READY TO

FRANCHISE? WHY WOULD ANYONE CONSIDER FRANCHISING?

John Balian, expert in business development and franchise operations, pinpoints the key questions to ask before you take the plunge

• Faster expansion • Less investment and financing • Minimized risks on the franchisor • Greater brand awareness • Higher revenues The setbacks of failing in franchising or multi branching are: less market share, lower customer retention and, thus, less confidence in the brand.

WHAT ARE THE EIGHT MUST-HAVE REQUIREMENTS TO FRANCHISE YOUR HOSPITALITY BUSINESS?

1. Don't franchise your business unless As you run and operate a successful restaurant, you will soon have the ambitions that most restaurant businesses seek to fulfill: franchising. Many hospitality businesses expand into multi-outlet operations, some through franchising, some through multi-branching and others through a mix of franchised and self-operated outlets. Ultimately, the processes enable you to become a franchisor or multi-chain business owner.

However, several good restaurants in the market fail to accomplish their mission.

Some have gone bankrupt and some have closed down their outlets, eventually returning to a one-outlet operation as they were before expanding. So how do you know when it's the right time to franchise?

Franchising your brand or concept is not as easy as many entrepreneurs might think; it requires a lot of hard work, is stressful and requires financing. However, if you successfully franchise your restaurant, the returns are potentially very promising.

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you can show successful records for at least two years. These numbers should be justified in your financial statements.

2. You need to run at least two to three outlets under your direct management at different locations. This will enable you to review and finetune all possible issues that could cause the project to fail, such as a location’s unique characteristics, quality consistency and other issues related to cost efficiency.

3. You should have documented at least two-thirds of the business’ main Standard Operation Procedures (SOPs) and created all forms and checklists to maintain your brand promise throughout your outlets.

4. You have a non-temporary, trend-driven concept with high gross-profit margins on 50 percent of your menu.

6. You have a good point of sale (POS) and enterprise resource planning (ERP) software that anticipates the growth and the control of your outlets.

7. You have built a good staff training structure and guidelines.

8. You have a skilled management team aligned with the company's vision, mission and values.

If your answers to the above points were ‘Yes’ then you can start considering franchising. Ninety percent of franchisees have zero knowledge in the franchised business. It’s your role to provide them with the know-how on how to operate, run, manage a successful franchise of your brand and build an effective quality control system that evaluates and maintains the core values of your company.

During the early stages of your first successful store, you may get approached by friends, customers or investors to open your next franchised outlet. My advice to you is: don’t get too excited and accept franchise applicants before building a strong system that will accompany your growth! Sticking to your plan and timeline makes your brand more valuable and gives the potential franchisees more confidence in your entrepreneurship skills. Remember that fast expansion with no grounded experience is a killer.

5. You have built an effective measuring and portioning of the ingredients and sub-recipes of the top-selling items on your menu.

bimpos.com

SPECIAL REPORT

FRANCHISING

Creating ‘franchisable’ concepts with Sanjay Murthy, co-founder of Figjam, a Dubai-based F&B solutions agency

UNDERSTAND YOUR BRAND Be clear on the brand’s unique selling propositions (USPs) and ‘why’ (why do people love it, why do people come back, why should people buy or believe), so that you can, in turn, communicate that to your franchisees.

You cannot expect them to do justice to your brand if you have no clarity yourself.

FROM SQUARE ONE When franchising, the number one thing that brands should remember is to build a company that was intended for franchise from day one, not to open the doors and see where it goes. Starting out with a fully formed goal in mind (i.e. franchising) will give you a different perspective when preparing business plans, growth strategies and brand guidelines. When you are in the early stages of establishing your brand - while you are preparing the business strategy and getting the concept right - is the time to make the decision of whether you’re going to franchise or not.

MIND THE LEGAL ASPECT Have franchise contracts and standardized brand guidelines ready from the outset. Detail everything that you believe will impact your brand’s performance and perceptions, such as the materials, colors, staff and training, the chef, the menu, the music, the sounds and smells.

INVESTORS Often, a brand is born, becomes successful and investors creep out of the woodwork eager to profit.

Owners can be sidelined by big investors fighting over their small operation. It may seem a relatively risk-free option and a way to expand with no capital expenditure for new outlets, but still benefitting from revenues.

But when no provision has been made for franchising, problems will arise. If standardizing the brand identity was not considered, what at first seemed risk-free can

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culminate in the brand losing its individuality, becoming just another soulless chain.

TRUST YOUR FRANCHISEE While the franchise route may look more attractive - less investment, adequate returns - it means giving up control of your brand. If you place your trust in the hands of your franchise partner and he devalues the brand identity, you lose your place in the market and the consumer’s trust, which it is near impossible to gain back.

TOP SIX TIPS FOR MAKING FRANCHISING WORK

1. Appoint a franchise attorney to protect both parties.

A standard business attorney may cost you more in the long run.

2. Choose your partner wisely as the contractual relationship could last five, 15 or 50 years.

3. Do not advertise that you are keen to franchise your brand. It sounds desperate and cheap. Instead, contact a hospitality consultant, who will evaluate your business and introduce you to the right investors and partners.

4. Know who you are working with. Look at how they run their other brands and businesses. Check if they are able to pay the royalties or if the money will go into their other business. Find out if your partner has other franchise partners and if they are happy.

5. Always seek a partner who has an all-round knowledge of hospitality and a passion, not just a financial investor.

6. If you do find yourself in the situation of being offered franchise opportunities, sell, where possible, a small part of the concept first to check if the franchisee is able to run it. If successful, they can invest further. figjamco.com

SPECIAL REPORT

4

FRANCHISING

MARKETING INGREDIENTS

FOR A SUCCESSFUL FRANCHISE RECIPE

Having worked with local and international franchises over the years, Boudy Nasrala, cofounder of WonderEight branding and interactive agency, offers tried-and-tested strategies for both franchisors and franchisees

So you’ve started receiving franchise requests; you may have signed a couple, or even signed a Franchise Area Development (FAD) in a new country. Suddenly your marketing department and your advertising agency find themselves in charge of new territories with new owners/operators. Based on experience, being able to measure the results between agency and the brand’s operation and sales provides great insight on what a successful franchise should do.

BUILD BRAND EQUITY When people buy your franchise, they buy your brand before your offering, because any F&B operator can replicate a menu, but not the brand’s equity. This is why you need to build your brand awareness before anything else, as this will give you a higher barrier for entry for competitors, and show your franchisee the brand value they will be investing in. Keep in mind that many new markets you venture into might not have heard of your brand yet. It is important to continuously promote your brand through regional channels, to start building awareness in future areas.

LOCALIZE YOUR BRAND Make sure the brand is ready to speak the local language. When you open a concept in a new area, don’t assume the tactics you’ve used before will work in every location. Go out and learn about the culture, what the people are like, and how they shop and eat. When you’re local, do as the locals do! Another important thing is to make sure that your brand experience is relative in the franchisee market. Show the franchisee you are by his/her side and ready to offer support. Once the franchise is sold and the royalties are being paid, many franchisors in the region offer inadequate support and sometimes none at all. Plan to visit them at least

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once per quarter and show support, listen, share your achievements and how to work locally.

MOTIVATE AND CONTROL The front lines of a restaurant are the Front of House staff (FOH). They relay the final experience. Make sure you continuously audit them and reward them when they meet set key performance indicators (KPIs), especially since they are far from you geographically (ie: international franchisees). Don’t hesitate to allocate a part of the marketing budget on staff motivation and audit teams. It is money well spent, every time.

LISTEN, MEASURE, ANALYZE Ask your franchisees for feedback - they are your ears in a new country or territory and offer a wonderful opportunity for you to get a feel of the market, as long as you keep your guidelines and core strategies in place.

Make sure your campaigns are being well executed on the ground and measure their impact on sales. See what worked well and what didn’t. This will help you make your next campaign more effective and efficient.

Now that your franchise marketing team is ready, they will need a budget to work with, which should come from your additional royalties that feed your marketing fund (normally between 1 percent and 4 percent). When the franchisee is still new, sales come from only one or two branches, so the fund will not be sufficient yet to cover the country or area. This is why it is crucial to explain to your franchisee what you will be doing with this fund and how important is it for them to spend more, from their own money, on local brand awareness and marketing tactics like you did when you started. wondereight.com

SPECIAL REPORT

FRANCHISING

WHAT WENT

WRONG?

technology because of the fast-paced and sometimes unpredictable way that the industry can develop.

interest from the franchisor side, as they are not making enough money to cover their costs in supporting the new franchisee.

2. Franchising is ideal for retail businesses where the franchisee obtains the rights for three fully integrated elements: the right to use the brand name/marks; the right to use the business system/know-how; and the right to sell the products/services.

6. Humble sales and profit levels and sometimes losses are caused by the franchisee’s poor management, lack of support from the franchisor and of course, under-capitalization for the first two or three years of the business. Poor management may include under-budgeted launch/ongoing marketing, lack of proper corporate structure, unqualified executives/operational staff, no or bad geographical customization of the business model, menu/product range and store designs, poor supply chain and product sourcing and limited ongoing research/development by both parties, and above all, over-spending or what I call ‘corporate arrogance’. At the end and with continuous poor financial returns, both parties will lose interest and elect not to continue with their losses.

3. Relying solely on the franchisor’s

Wondering why franchising might not be right for you? Sary Hamway, COO of the World Franchise Associates, sheds light on politics and profits In buying a franchise, some costly mistakes can happen from the time of planning, in the initial communication between the parties, in the structure of the franchise fees and royalties, in selecting a location, or during the management and operation of the business.

1. At the outset, you need to ask yourself: Is franchising the best option for me?

Franchising is one way of doing business and not necessarily the best way of doing it. Franchising is not ideal if you are interested in establishing a manufacturing business or for transfer of know-how and, it's definitely not good for information

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franchise marketing material, improper preentry market research and miscalculation of the required financial resources are a prescription for certain future failure.

4. There can be misrepresentations by both parties where the franchisor tries to show that he has the best business and support system and where the franchisee tries to show that he would be the best operator/ developer of the business in the target market. Clearly, overpromising, lack of understanding, setting false expectations and lack of transparency is not going to help anyone.

5. Franchise fees and royalties are meant to cover the costs associated with helping the new franchisee in establishing the business in a new market. This includes cost of training and transfer of know-how through operating manuals. If the franchise fees and royalties are over-estimated, then the business will be unable to bring in a good return on investment over an acceptable period. If the franchise fees and royalties are under-estimated, it may cause loss of

ABOUT WORLD FRANCHISE ASSOCIATES London-based the World Franchise Associates (WFA) enables franchisors to enter new international markets while assisting qualified candidates acquire area-development, multiunit, master and multi-country agreements. worldfranchiseassociates.com

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FRANCHISING

MIDDLE EAST

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

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.

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Marzouk Nasser Al-Kharafi Chairman and Managing Director

Americana 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.

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FRANCHISING

Almuftah Group is a highly successful restaurant operator which operates mainly in Qatar. The group has grown into a major Qatari player since its inception in 1977, and, even after almost 40 years, the corporate portfolio is still expanding. Most of the group’s brands are popular casual dining restaurants, where diners are afforded great food and friendly service in comfortable surroundings. Others, meanwhile, are established fine dining favorites. Some of their most renowned brands are: Pizza Hut; Arby’s; Fuddruckers; Bennigan’s; Ponderosa Steakhouse; Coffee Beanery; The Country’s Best Yogurt; Caravan Restaurant; Asiana; Caravan Bukhara; Star of India; Shebestan Palace; Al Tazaj Chicken; Turkish Al Bukhari; Barbar; Kababji, Sterling Fast Food; Pizza Corner; Twinky; and London Bakery.

1977 in Lebanon, the group incorporates companies that operate in the food and leisure industry, particularly in hotels like Le Commodore Beirut, alongside one of the finest health club and spas in the Middle East under the name of Lifestyles Health Club and Spa. However, the group is best known for its wide array of eclectic restaurant concepts, serving around 300,000 customers each month.

The restaurants portfolio includes: La Piazza, Beirut and Dubai; Le Relais de l'Entrecôte being franchised to Ashrafieh; Scoozi, Beirut and Dubai; Benihana; Bob’s, Dubai; Kaiten; Napoletana, Lebanon and Dubai; The Met; Café Hamra; Café Libanais; Cozmo Café; Magnolia; Café de Flore; Pomodoro; Métropole; Coast; Cucina; The Butcher Shop & Grill Beirut; Angelina; and The Corner at Beirut Souks.

Said Daher CEO Azadea Group

Charles Arbid

Azadea Group is a premier lifestyle retail company, founded in Lebanon in 1978, owning and operating more than 50 leading international franchise concepts across the Middle East and Africa. Representing leading international brand names in F&B, among other sectors, with over 12,000 employees on its payroll, the company boasts a solid infrastructure, overseeing more than 650 outlets, spread across 13 countries including, Algeria, Bahrain, Cyprus, Egypt, Ghana, Iraq, Jordan, Saudi Arabia, Kuwait, Lebanon, Oman, Qatar and United Arab Emirates. “You can grow much faster as a franchise than if you’re operating your own brand.

With a franchise, you’re implementing already-successful business models.

Why bother establishing a vertically integrated business model, which will take you years and years to perfect, when you can get involved at the end of the supply chain and start opening outlets in promising markets in a matter of months?” CEO, Said Daher, said. The group’s portfolio includes: Argo Tea; Columbus Café & Co; Eataly; Pulp; Paul; and The Butcher Shop & Grill.

Another significant player on the F&B scene is Boubess Group. Founded in

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President

Lebanese Franchise Association FRANCHISING LEBANON When Charles Arbid, President of the Lebanese Franchise Association, was asked why the LFA was so heavily skewed towards the F&B sector, and whether there was a possibility of it becoming more diversifed, he responded by saying, “I’d really like to see it go beyond the F&B lead.” But, he added, "that’s part of the nature of the franchise. We are trying to cover all the sectors, but restaurants offer the biggest potential for franchising.”

LEBANESE FRANCHISORS DEALS 24% 19% 14% 10%

11% 6%

KSA

UAE

KUWAIT

QATAR

AFRICA

USA & EUROPE

protocollb.com

A RECENT STUDY CONDUCTED BY PROTOCOL THAT BRIEFED THE MARKET ON THE LEBANESE FRANCHISE SECTOR REVEALED THE FOLLOWING DATA: • The country’s franchises are worth USD 1.5 billion per year and 4 percent of GDP • The franchise industry employs 99,000 workers • There are 744 franchise companies in operation, accounting for 6 percent of all national companies • 70 franchise members are under the LFA, of which 42 percent are restaurants and cafes • There have been 79 deals made versus 21 terminated • 14 lead or potential franchisees tap Lebanese franchisors per year, with 2 to 3 percent of negotiations closed • USD 55,000 is the upfront, initial franchise fees for local franchisees versus USD 184,000 for those abroad • Marketing fees are 1.9 percent of sales for local franchises versus 2.1 percent for those abroad • Royalties are 4.9 percent for local franchises versus 5.4 percent for those abroad • Average fees charged by international franchisors are: franchise fees - USD 157,000; royalty fees - 9.2 percent; marketing fees - 4 percent • Franchise deals made by Lebanese franchisors by geographical location are divided: KSA - 24 percent; UAE 19 percent; Kuwait - 14 percent; Qatar - 10 percent; Africa - 11 percent; Europe - 6 percent; and US - 6 percent • 1,100 franchise concepts operate locally, of which 450 are Lebanese • 5,500 is the number of foreign franchise outlets operating locally: 2,400 Lebanese and 3,100 foreign • The new markets to tap are the south Mediterranean – Morocco, Tunisia, Algeria and Libya – since it is seen as too early to enter Europe. It’s also best to choose emerging markets over virgin markets

SPECIAL REPORT

FRANCHISING

LEAD

BY EXAMPLE

Hospitality News ME compiled a list of the most successful Lebanese F&B concepts and traced their journeys around the globe in a bid to map out the local-franchise scene

LEBANESE FRANCHISE MAP *

Compiled by Hospitality News ME

CONQUERING THE GCC A natural bridge, the first market tapped by Lebanese franchises was the GCC. Nearly 50 percent of F&B concepts gained their foothold in KSA, UAE, Qatar, Kuwait, Oman and Bahrain. Citizens of these countries have long been loyal visitors to Lebanon, experiencing and enjoying the country’s concepts, before establishing them in their hometowns.

THE NEIGHBORS Domestic and internal franchises are extremely trendy in Lebanon, with almost 38 percent of concepts franchised within the country. This is a real phenomenon reflecting the success, popularity and high profitability of these concepts. Investors and entrepreneurs are expanding F&B outlets in the capital, the suburbs and even further out into remote areas, despite the country’s small size, in increasing numbers.

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Aside from local franchising, Lebanese concepts have also found real opportunities in neighboring countries, such as Jordan and Iraq.

EXPANDING IN AFRICA Part of the Arab World, Egypt and Sudan provided attractive opportunities for several local concepts. Key to this has been the fact that Africa has traditionally long had a high ratio of Lebanese expatriates. Accordingly, operating there has been a natural route for expansion for many entrepreneurs keen to cater to this diaspora.

EMERGING IN EUROPE Establishing a business in Europe involves following different norms and abiding by stricter instructions. It also generally requires a deeper market knowledge.

However, Lebanese attempting to access these markets through the back door found

Eastern Europe a little easier to debut.

Some others are in the course of launching their concepts, mainly in London and Paris.

THE NEW CONTINENT Distant, tough and highly competitive are words many local businesses would use to describe the US market. To overcome these sizeable hurdles, any successful concept would require the right market knowledge, flexible concepts, strong cashflow, adequate partnerships and marketing knowhow. Many believe that meeting such challenging market criteria would mean that a concept had the potential to become a global brand. It is emerging, but slowly.

* ALL OF THE LEBANESE FRANCHISES INCLUDED IN THIS MAP AND ANALYSIS ARE LISTED IN THE HOSPITALITY NEWS HUNDRED ON P. 42

FRANCHISING

SPECIAL REPORT

KNOW YOUR FRANCHISE (KYF) Fact sheets for 22 top franchises in the Lebanese market

ABD EL WAHAB In brief Lebanese restaurant with an authentic experience.

Royalty fees 5 percent of sales Cost to establish each outlet USD 2,500/m2 Corporate support and marketing fees 1 percent of sales Current number of franchises + locations 5 in UAE, 3 in KSA, 1 in Bahrain, 1 in Egypt, 2 in Qatar, 3 in Lebanon Contact information Fadi Itani Franchise Manager E: franchise@ghiaholding.com W: ghiaholding.com

AHWAK In brief Lebanese restaurant with modern cuisine.

Royalty fees 5 percent of sales Cost to establish each outlet USD 2,500/m2 Corporate support and marketing fees 1 percent of sales Current number of franchises + locations 2 in Iraq, 2 in KSA, 3 in UAE, 1 in Oman, 3 in Lebanon Contact information Fadi Itani Franchise Manager E: franchise@ghiaholding.com W: ghiaholding.com

AL SULTAN BRAHIM In brief An upscale Lebanese seafood restaurant, which has been operating for over 50 years. Al Sultan Brahim won the Best Quality Restaurant in the Arab World 2016 by the League of Arab States.

Initial franchise cost USD 3,000/m2 Royalty fees 7 percent Cost to establish each outlet USD 3,000/m2 Corporate support and marketing fees 1 percent of revenue Current number of franchises + locations One in Qatar and one coming soon to Kuwait.

Contact information Khalil Ramy Managing Partner Ramy Holding E: connect@al-sultanbrahim.com W: alsultanbrahim.com

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BAB IDRIS In brief A Lebanese restaurant offering casual dining experience with authentic cuisine.

Initial franchise cost USD 75,000 Royalty fees 5 percent of sales per month Geographic development condition Depending on the location. Average 30-36.

Cost to establish each outlet USD 1,300/m2 Corporate support and marketing fees Free of charge Current number of franchises + locations 1 in Oman, 2 in KSA Contact information Roy Maroun Business Development Director E: r.maroun@antventures.com W: antventures.com

BOUBOUFFE In brief Full-fledged restaurant with menu ranging from Lebanese food specialties to international dishes served from lunch to dinner, aiming to spread the Lebanese home food culture with a brasserie spirit and affordable prices.

Royalty fees 5 percent of total revenue Corporate support and marketing fees 1 percent of total revenues Current number of franchises + locations 1 franchisee, 3 restaurants and 2 trucks in UAE Contact information Ralph Nader - Deputy CEO E: info@boubouffe-intl.com W: boubouffe-intl.com

CAFÉ YOUNES In brief Coffee shop relying on 82 years of trade experience. An artisan-fresh small batch roasting unique concept, scalable in size and offerings.

Initial franchise cost Depending on the territory, but starting USD 100,000 for a period of ten years.

Master franchise cost, geographic development conditions, and conditions to re-franchise The master franchise could start with USD 250,000 in the GCC (countries excluding KSA and UAE).

Re-franchising conditions depend on meeting the franchise development agreement conditions and KPIs. Royalty fees 5 percent of monthly gross revenue Overhead Depending on the size of outlet. Around 20 to 25 percent of gross sales.

Cost to establish each outlet USD 200,000 - USD 400,000 Corporate support and marketing fees Free corporate support, marketing fees cost one percent of the monthly gross revenue Current number of franchises + locations 1 in KSA Contact information Amin Younes - Managing Partner E: franchise@cafeyounes.com W: cafeyounes.com

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We are hearing, smelling, looking at, tasting and touching old Beirut in Riyadh Mazen Amineddine, franchisee managing partner, KSA

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FRANCHISING

CASPER & GAMBINI’S In brief An upscale casual dining restaurant, with an all-day menu featuring hot platters, sandwiches, salads, as well as a wide choice of healthy meals, desserts, coffee and refreshments.

Initial franchise cost USD 95,000 - USD 135,000 Royalty fees 5 percent per month Geographic development condition 30-34 Cost to establish each outlet USD 1,300/m2 Corporate support and marketing fees Free of charge Current number of franchises + locations 9 franchisees in Egypt, Oman, Erbil, Lebanon, Lagos, Jordan, Qatar, UAE, KSA Contact information Roy Maroun - Business Development Director E: r.maroun@antventures.com W: antventures.com

Making the decision to buy a business is always difficult, but after carrying out our due diligence and researching the concept, we were comfortable with the concept and believed in the product and service C&G provided. When we purchased our franchise we were pleasantly surprised that the costs included everything you need to run your business and we feel that the franchisor-franchisee relationship is fair and reasonable David Bou Dargham, franchise owner, Lagos

CLASSIC BURGER JOINT In brief A fast-casual burger joint. The best alternative between a gourmet burger and a quick-service burger.

Initial franchise cost USD 80,000 Area development franchise opportunities Qatar, Bahrain, UAE, Oman, Jordan, Turkey, Iran, Egypt, KSA Royalty fees (in dollars, per month) 6 percent of gross revenue Geographic development condition 10 Cost to establish each outlet USD 300,000 Corporate support and marketing fees 2 percent of gross revenue Current number of franchises + locations 30 in Lebanon, UAE, Kuwait, Cyprus and Iraq Contact information Angela Sawan - Franchise Development Manager E: franchise@cbj.me W: cbj.me

We acquired the Classic Burger Joint Area Development rights for Kuwait in 2013 when we opened one store in Funtas area. Four years later, we own nine stores with one under development, and we are going strong. The concept has also proven to be highly adaptable to local wishes. Great opportunities, great people to work with, and great products Abdul Rahman Al Mutairi, CEO, Las Palmas

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FRANCHISING

CREPAWAY

CURLI-Q

In brief Since 1984, Crepaway is the leading casual restaurant in Lebanon and has grown to become one of the most beloved restaurants in the region.

Current number of franchises + locations 13 owned outlets and 2 franchised in Lebanon and 2 franchises in Qatar with new franchise contracts for Kurdistan in process

In brief Pastry shop and cafĂŠ with specialty cakes and pastries.

Initial franchise cost USD 40,000 Royalty fees 5 percent per month Cost to establish each outlet Between USD 95,000 (small size) and USD 250,000 (full-fledged) Corporate support and marketing fees 2 percent Current number of franchises + locations 2

Contact information Jibran Shweiry Owner Representative - Business Development Director E: development@crepaway.com W: crepaway.com

DIWAN BEIRUT In brief Established in 1999, Diwan Beirut was originally called Diwan Al Sultan Brahim.

In 2015, it was changed, with a renovated venue, to Diwan Beirut. The restaurant offers traditional Lebanese cuisine in addition to specialty platters and sandwiches.

Initial franchise cost USD 2,000/m2 Royalty fees 7 percent Cost to establish each outlet USD 2,000/m2 Corporate support and marketing fees 1 percent of revenue Current number of franchises + locations One coming soon to Kuwait.

Contact information Khalil Ramy Managing Partner Ramy Holding E: connect@diwanbeirut.com W: diwanbeirut.com

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Contact information Maya Bekhazi Noun - Founder E: ask@food-gallery.com W: food-gallery.com

EATALIAN In brief Offers a casual dining experience with a genuine Italian atmosphere.

Initial franchise cost USD 60,000 Royalty fees 5 percent of sales per month Geographic development condition Average 30 Cost to establish each outlet USD 1,200/m2 Corporate support and marketing fees Free of charge Current number of franchises + locations 1 in Oman Contact information Roy Maroun - Business Development Director E: r.maroun@antventures.com W: antventures.com

FALAFEL & MORE In brief A modern fast-dining service concept brining a diverse menu of falafel, shawarma, grills, and specialties, aiming to bring great taste and quality food at affordable prices.

Initial franchise cost USD 40,000 Royalty fees 5 percent of sales Geographic development condition Average 8 Cost to establish each outlet USD 150,000 - USD 175,000 Corporate support and marketing fees Free of charge Current number of franchises + locations 1 in Oman Contact information Roy Maroun - Business Development Director E: r.maroun@antventures.com W: antventures.com

FROM THE TREE In brief Offers original and seasonally flavored non-fat frozen yogurts, customized from a wide variety of dry and candied toppings as well as fresh seasonal fruits, juice bar and soft service ice cream.

Initial franchise cost USD 40,000 Royalty fees 5 percent per month Geographic development condition Average 6 Cost to establish each outlet USD 150,000 to USD 175,000 Corporate support and marketing fees Free of charge Current number of franchises + locations 1 in Oman Contact information Roy Maroun - Business Development Director E: r.maroun@antventures.com W: antventures.com

LEILA MIN LEBNEN In brief A casual Lebanese restaurant offering authentic homemade Lebanese dishes, beverages and desserts prepared with fresh, local ingredients.

Current number of franchises + locations 3 in Kuwait, 4 in UAE, 4 in Egypt, 1 in Bahrain, 1 in Qatar, 2 in KSA Contact information Joe Abrass - Managing Partner E: joe.a@leilarestaurant.com W: leilarestaurant.com

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MALAK AL TAWOUK In brief A quick-service restaurant, dedicated, since 1996, in serving ‘tawouk’, a Lebanese specialty in competitive prices.

Royalty fees 6 percent per month Overhead 18 percent Cost to establish each outlet USD 100,000 Corporate support and marketing fees 2 percent Current number of franchises + locations 30 in Lebanon Contact information Joseph Ajoury - General Manager E: joseph.ajoury@malakaltawouk.com W: malakaltawouk.com

We at Malak al Tawouk, work as a big family, focusing on one goal - providing our loyal consumers the best achievable value and attracting potential customers too Marc Saliba, franchisee, Jbeil

MAYRIG/BATCHIG In brief Mayrig is an Armenian traditional restaurant. Batchig is a Mediterranean Levantine restaurant and bar, combining flavors from Levantine and Middle Eastern cuisines.

Master franchise cost, geographic development conditions and conditions to re-franchise Mayrig: No master franchise available Batchig: Variant depending on the country Royalty fees 6 percent per month Cost to establish each outlet USD 600,000 - USD 800,000 Corporate support and marketing fees 1 percent per month Current number of franchises + locations Mayrig: Dubai, Riyadh Contact information for both concepts Aline Kamakian and Serge Macaron - Founders E: info@figholding.com W: figholding.com

The support we have received from Fig Holding from Beirut is exceptional. Frequent visits and attention to detail make Mayrig Riyadh a flawless restaurant, serving the best Armenian food in KSA and reaping great reviews from customers from many different nationalities Habib Kashouh, franchisee, KSA

MOKA & MORE In brief moka&more is a coffeehouse chain. It is a brew of coffee-based drinks made to perfection, mouth-watering food and a welcoming ambiance.

Cost to establish each outlet Variant as customers can choose between three different types of outlets - kiosks, mall outlets and independent shops. Menu variety also affects the cost.

Corporate support and marketing fees Marketing fees are included in the franchise fees, as well as the monthly royalty fees it receives from the franchisee.

Current number of franchises + locations 7 in KSA, 3 in Oman, 2 in Georgia, 4 in Iraq, 2 in Abidjan, 2 in Sudan Contact information Christelle Helou - Franchise Developer E: franchise2@mokaandmore.com W: mokaandmore.com

We would like to extend our gratitude and appreciation towards our franchisor and support team for all the time, effort and dedication to make the moka&more franchisee's experience an enjoyable, prosperous and recommended one Rawad Deeb, operations manager, Oman

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SPECIAL REPORT

FRANCHISING

NASMA In brief Nasma is the Arabic translation of the word ‘Breeze’. A genuine Lebanese restaurant that offers the taste of Lebanese hospitality to a diverse customer platform.

Current number of franchises + locations 2 owned outlets and 1 franchised in Lebanon with new franchise contracts for KSA and Kurdistan in process Contact information Jibran Shweiry Owner Representative Business Development Director E: development@crepaway.com W: nasmabeyrouth.com

TOMATOMATIC PIZZA

The expertise and the support Ministry of Food (founder of TOMATOMATIC and CBJ) grants to their franchisees give a great push towards new expansion. It is with this support that we grow and develop the skill to drive our business further into the future confidently Vahan Boyadjian, CEO, Catena SAL

WOODEN BAKERY In brief Convenient bakery store, combining the convenience and the freshness.

Current franchises 1 operating factory in KSA and 6 outlets Current number of franchises + locations 52 in Lebanon, 2 contracts signed in the UAE and Qatar Contact information E: franchise@woodenbakery.com W: woodenbakery.com

I grew up consuming Wooden Bakery items and came to realize the potentials of its brand and concept. Being the first franchise owner to sign up and broaden to a multi-unit operation, makes me successful. The development of the business requires efficient customer service to enhance the value of the concept. We rely on product quality, variety of items, freshness of products and customer satisfaction. Being a franchise owner of has been an honor and I am planning for more branches Jad Saba, franchise owner of four outlets (Awkar, Jbeil, Tripoli and Zgharta)

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In brief Quick-service pizza with fresh local ingredients.

Great delivery service and price.

Initial franchise cost USD 30,000 Single unit franchise opportunities Lebanon (Tripoli, Saida, Khaldeh, Jbeil, Mazraa, Beirut Southern Suburb) Does not refranchise Area development franchise opportunities Kuwait, UAE, KSA Royalty fees 4 percent of gross revenue Geographic development condition 6 Cost to establish each outlet USD 120,000 Corporate support and marketing fees 3 percent of gross revenue Current number of franchises + locations 5 in Lebanon and in Iraq Contact information Angela Sawan - Franchise Development Manager E: franchise@tomatomatic.com W: tomatomatic.com

BUSINESS

TRENDS

T R A M ‘S TIES’ CI EXT

N E TH DARD N M? A T S S I R U O T N I

Smart solutions: A global movement

In the past decade, smart cities have become an industry buzzphrase. A race to innovation has emerged across the globe. By 2020, it is expected that investment in smart cities will increase significantly, reaching USD 1.5 trillion compared to USD 400 billion in 2015, according to data by Frost & Sullivan. Ralph Nader, CEO of Amber Consulting, tells us more

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European and American cities are pioneers in smart city solutions and are investing heavily to cope with aging urban infrastructure. In Southeast Asia, Singapore’s ambition is to become the world’s first smart city-state: a record USD 2.82 billion worth of technology tenders were called in 2016 alone.

India has selected 109 cities to be part of the nationwide ‘Smart City Mission’, and there are no less than 300 pilot smart cities being developed in China, according to ‘Smart Cities in China', a report by EU SME Center. In the Middle East, fueled by the Expo 2020 winning bid, Dubai is leading the smart city race with an estimated investment of USD 8 billion in smart city infrastructure.

Defining smart cities The cosmopolitan smart city concept is a great marketing stunt. But who can really pretend to belong to this elite circle, in a market that is yet to be standardized? To limit abuse of the concept, the European Union set a standard definition, though it is very scarcely used. IHS, the leading market research firm, is stricter, and narrows the definition to describe cities “that have deployed—or are currently piloting—the integration of information, communications and technology (ICT)

solutions across three or more different functional areas of a city. These functional areas include mobile and transport, energy and sustainability, physical infrastructure, governance, and safety and security.” IHS identifies only 33 smart cities today, a number that clearly doesn't include the hundreds of other so-called smart cities currently in development.

From smart cities to smart destinations Today’s tourism market represents the ideal sector in which smart solutions can be implemented. From the notion of a ‘Smart City’ we move on to its derivate ‘Smart Tourism’ and ‘Smart Destination’.

The need is here, with lower travel barriers leading to a more competitive environment, as tourists become more demanding. The traveler’s experience has never been more important, and advanced technologies can undoubtedly act as a driver for improvement. The large amount of data generated by tourists through their travel-related activities can be tracked and analyzed to understand consumer behaviors. It also forms patterns used to develop applications. Smart solutions in tourism are diversified, including optimized transportation, augmented reality in museums and smart crowd management.

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BUSINESS

TRENDS

Benefits for tourism authorities All tourism stakeholders, whether they belong to the public sector or the private sector, like hotel operators, can only benefit from smart destination initiatives.

Understanding the tourist's mindset through heavy data collection will allow cities to propose tailored experiences and products that are adapted to the needs and behaviors of the visitor. It also improves branding. Singapore, for example, is known for its innovative environment and tourists come, in part, to discover a destination that has often been mentioned as the ultimate smart city. Additionally, a visitor that has not spent hours in traffic will obviously have more free time and will want to visit more attractions. A comfortable tourist, who’s in harmony with the city he is visiting, will also be more inclined to purchase goods and souvenirs or to pay for that extra bottle of wine in a fine dining restaurant. And lastly, high customization in tourist attractions will push tourists to expand their visits and come back for another experience, at the same destination. Imagine visiting a museum three times, and having a different experience every time.

Benefits for the accommodation sector Reduce costs: Smart utility systems implemented at city level that optimize the use of resources (such as water, waste, and energy) can directly reduce the bills of high-consumption businesses, like hotels. Smart cities also guarantee smoother tourist flow through improved transportation systems. Tourists will no longer be late at their checkout and will be able to go to and from hotels smoothly and comfortably.

City branding spillover: Hotels will benefit from the smart city branding by being associated with the development of smart solutions. Additionally, anticipating customer needs in real-time will increase satisfaction. The ‘wow effect’ will be noted and the word spread in customer reviews.

Finally, hotels that implement smart solutions gain efficiency, reduce humanrelated mistakes and generally improve their customers' experience.

NUMBER OF SMART CITIES WORLDWIDE (IHS DEFINITION)

21

24

2013

2014

33

28

2015

2016

Holistic integration: Many smart city projects are largely an amalgam of small, limited initiatives. The multiplication of smart services can often confuse the visitor. It is advisable to develop a single vision project rather than standalone initiatives using different interfaces and platforms.

Privacy and data piracy: Most smart city entities are aware of information security issues, but few have developed and

Using a plethora of gadgets does not make a city a smart one implemented comprehensive solutions to address the problem. “The big, big elephant in the room is protection of privacy and ensuring security,” says Vivian Balakrishnan, Singapore’s foreign affairs minister and minister-in-charge of Smart Nation.

Measuring financial returns: While smart projects offer intangible benefits, for instance, city branding and prestige, their returns on investment (ROIs) are hard to measure and reached only after long-term periods. It is sometimes challenging for city leaders to justify large investments and attract private investors without developing a clear understanding of the financial benefits.

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Tourist engagement: The involvement of tourists in using applications, generating useful data and providing feedback has to reach a critical level to produce actionable and positive results for the city.

What’s next?

Despite the challenges generated by the development of smart cities, urban centers around the world should invest in transforming into smart cities. The smart tourism applications are not expected to slow down in the next decade. It is now clear that technology and innovation lies at the core of tourism's future.

The most important challenge is to implement solutions that really address tourist's needs, rather than just apply gadget technology.

Tourism is, and will always be about visitors enjoying their experience, with or without smart technology.

Cities currently investing in smart solutions are mostly rich and developed urban areas, such as Singapore and Dubai. However, the cities that need it most are the ones with hostile infrastructure, overwhelming tourist experience and swarming crowds, but incredible culture and history (think Beirut or Marrakech). They are also the ones with the lowest financial and technical means. Will they be able to become smart cities one day?

amber-consulting.com

Smart Tourism: Beware of the challenges Not all use of technology or apps turns an urban area into a smart city. Developing smart tourism initiatives also produces major challenges that should be considered by city leaders: Up-scaling challenge: While pilot projects are often efficient on a small scale, it is challenging to adapt the solution to a larger city-wide scale. Feasibility on a large scale is hard to assess and usually evaluated by means of experience or observation.

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The Stedelijk Museum in Amsterdam offers tailor-made storytelling applications.

TASTE OF EXCELLENCE

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Le Cordon Bleu offers a range of widely-recognized training programs in the fields of gastronomy, wine, hotel and tourism from initiation level through to MBA.

LE CORDON BLEU PROGRAMS • Culinary Arts: Cuisine, Pâtisserie and Bakery • Bachelor and Masters Degrees in Hotel and Restaurant Management • Master of Gastronomic Tourism Online • Wine and Management • Le Cordon Bleu Advanced Studies in Taste (Hautes Études du Goût – HEG)

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ISTANBUL

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MALAYSIA

THAILAND

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INDIA

CHILE

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BUSINESS

STRATEGY

OTAs FRIEND OR FOE?

1. How can you assess the OTA activity in the Middle East?

At Booking.com, our goal is to help connect travelers from all of the world with their ideal stay in the most seamless and enjoyable way possible, and this holds true for the Middle East. Through our website and mobile apps, we enable people to discover and book their stays, empowering them to experience the rich cultures and history of the Middle East for themselves, thus driving valuable incremental international business for our accommodation partners in the area.

The boom of online travel agencies (OTAs) is effectively changing the hotel-booking game for ever. Joost Vermeulen, regional manager Middle East and Africa for Booking.com, the winner of 2015’s World’s Leading Online Travel Agency Website by the World Travel Awards, unveils the secrets of this buzzing booking system

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2. What is the cash value of this industry globally and in the Middle East specifically?

Global travel is currently estimated to be a trillion-dollar industry. With the continued growth the tourism industry has seen in recent years, especially in a destination like Dubai, it is likely that the Middle East will be an important region to watch in the years to come. It includes some important and markets that are full of potential for Booking.com.

3. What added value do OTAs bring versus regular hotel booking?

With more than 1.1 million properties, from five-star luxury resorts to homes, apartments and everything in between, an online booking platform such as Booking.com offers consumers unparalleled choice in terms of selecting the place to stay. Not only are our website and mobile apps fully localised in 43 languages, but we also provide customers with numerous tools and filters so they can quickly find and book their perfect stay. If our customers ever have any questions or concerns, our customer service team is available 24/7 to support them, also in over 40 languages.

This large choice and service is also backed up by our promise to price match: If our customers find a better deal for the same room online, we will refund the difference. For our accommodation partners, Booking.com is a highly efficient and cost-effective digital marketing platform, driving substantial volumes of incremental (international) business for them with a guaranteed ROI.

4. How can OTAs become a meaningful partner in the advancement of the industry?

We build great relationships with our accommodation partners all over the world, working closely with them on a local level via over 180 offices, to grow their businesses via our platform. As a digital marketing channel, we are both friend and valued business partner.

Our role is to help the accommodation providers choosing to list with us to remain relevant and to reach new customers in an increasingly mobile-dominated environment. Once a property signs up to work with us, we not only localize their information in 40+ languages, but we further optimize this content for all devices. Our marketing specialists are experts in identifying potential customers with the intent to travel and then bringing them to our platform to engage further and ultimately book. We also employ over a thousand engineers, developers, UX designers and data scientists to continuously optimize every aspect of Booking.com.

5. What challenges do you face?

The biggest challenge we face, and we truly look at this as an opportunity, is to keep up with the ever-evolving demands of our customers, both in terms of the

BUSINESS

STRATEGY

types of stays and destinations that they are most interested in exploring, but also with how technology is shaping consumer expectations. From recent research that we have commissioned, 45 percent of travelers say that they plan to be more adventurous in their choice of destination in the coming year, and 47 percent would like to explore corners of the globe that none of their friends have been to. We are seeing evidence of a growing appetite to embrace undiscovered environments in an authentic way. To meet this demand, we are constantly bringing additional properties to our platform in new destinations.

Consumers can now explore over 100,000 destinations, with 70 percent of those stays being something other than a traditional hotel, including everything from B&Bs, villas and apartments to more exotic options like tree houses, boats and even igloos.

When it comes to technology, we are investing in and experimenting with the latest developments in artificial intelligence, machine

learning and voice recognition technologies to find useful ways to empower travelers to express their own travel lifestyle.

6. What is the future of the industry?

Technology is fuelling a more demanding and impatient traveler, which is shaping the future of the industry. According to our research, 44 percent of travelers already expect to be able to plan their holiday in a few simple taps of their smartphone. Over half expect their use of travel apps to increase in 2017.

Usage of smart, instant message technology that moulds to our preferences to solve every question and wish in real-time, will become second nature. Consumers want to be able to manage every aspect of their trips with a swipe of their finger. Our aim is to bridge this gap for our partners, investing in new developments like machine learning and AI, so that they can continue to deliver the fabulous, in-person, human experiences that keep our customers coming back for more.

eRevMax

THE BATTLE CONTINUES While hotels and OTAs are indispensable to each other, the relationship is a classic case of ‘can’t live with him/can't live without him’

OTA revenues come from the commissions hotels are charged for the bookings they intermediate. While these used to be around ten percent, commission rates have increased dramatically over the last ten years.

Commissions charged by OTAs are typically 15-30 percent of the value of the stay, although there is anecdotal evidence that they are sometimes even higher than this. In the UK, commissions are generally paid on the VAT inclusive rate so the actual commission costs to hotels are closer to 18-36 percent. Booking.com further supplements these commissions by asking hotels to pay for preferential placing – typically a further three percent. OTAs spend a large proportion of the commissions that they collect on metasearch where they bid against the hotels that pay them the commission.

In the last two decades, since the launch of Expedia, the exponential growth of OTAs has un-nerved the hotel industry. For hotels, they are giants, threatening to disturb the equilibrium they used to enjoy before the advent of the internet.

With the continuous shift to online business, coupled with changing consumer behavior patterns, hotels are finding it difficult to cope up with the challenge not restricted to competition with the neighborhood properties any more.

Far beyond that, they now have to capture and retain the attention of consumers who would spend an average of 20 to 29 days researching their trip before hitting the ‘Book’ button. Over half the population in the Middle East is between 18 and 34 years of age. They will visit over 17 websites, check reviews, exchange notes with friends and family before finalizing on where to stay. As the fight for a share of the pie heats up, with the availability of more inventory, hotels need to be visible at every touch point to capture the customer’s interest. On the other hand, OTAs invest a lot more than individual hotels. Two online travel giants, Expedia and Priceline, spend around USD 4 billion annually in Google search advertising. In the Middle East, about 38 percent of online bookings are made through OTAs. For hotels, OTAs can be a great opportunity to not only increase their visibility in the region, but also expand their market reach. With high internet penetration and increase use of smartphones, guests are more engaged in searching their travel planning online. Generally, the classic booking journey starts with OTAs i.e. guests visit online travel sites and book their preferred hotel. According to a Google survey, 52 percent of travelers will visit your hotel’s website after seeing you on an OTA. A three-year-long survey on the billboard effect by WIHP shows that over 20 percent of direct bookings occurred, after the guest found the hotel on an OTA.

skift.com

erevmax.com

Booking.com

OTA REVENUE

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NATURALLY INSPIRING

VISIT US

at GULFOOD

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Sweet and tangy with a hint of acidity, Le Fruit de MONIN Pineapple perfectly captures this

inspire every creative professional.

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exoticism to a piña-colada or create refreshing smoothies and concoctions with this vibrant and

BUSINESS

EYE ON

NYC THE BIG APPLE EYE ON

OF F&B

The city has been a magnet for various investors and F&B is no exception. Dawn Sweeney, president & CEO of the largest trade group for the U.S. restaurant industry, the National Restaurant Association (NRA), speaks to Hospitality News ME about the tempting culinary opportunities in NYC

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New York City has always been a place where dreams can come true. That is especially true for New York’s restaurateurs and employees, where people are encouraged to exercise creativity in cuisine and push the boundaries on menu trends.

The city’s restaurants are not just centers for innovation, they are central to the health of the overall economy. There are over 20,000 eating and drinking establishments across the five boroughs which account for more than 290,000 jobs, making them one of the largest private employers in the city.

Restaurants: A true magnet Restaurants provide more than opportunities to New Yorkers, as these outlets attract millions of visitors annually, enticing them to explore new cuisines. Tourists regularly cite going to restaurants as a major reason for visiting New York City and, in 2017, ethnic and Middle Eastern cuisine will be another draw for tourists and New Yorkers alike.

There is a growing appetite for ethnic cuisine here, with Mediterranean food consistently ranking among the top 10 most popular ethnic foods in America.

According to NRA’s annual ‘What’s Hot’ survey of 1,300 professional chefs that explores food and beverage trends, street food, authentic ethnic cuisine,

spices, such as harissa, and curry will be in high demand in the coming year.

The challenges ahead While NYC continues to offer great opportunities for restaurateurs to embrace innovation and reasons for visitors to come into the city, burdensome regulations threaten the economic vitality of restaurants in the Big Apple. In a city where restaurants already face a high cost of business, the last thing they need are additional taxes, fees and regulations that can make it even harder for them to achieve the American Dream. Thankfully, there is still big opportunity for success in the city’s restaurant industry, especially within burgeoning cuisines. The Wall Street Journal reported, “the number of eating establishments in Brooklyn grew 10 percent to 5,658 at the start of fiscal year 2014, from 5,151 in 2009. Manhattan saw a six percent rise, to 9,654 establishments.”

Restaurant growth is being seen in all boroughs and with that development, New Yorkers are expanding their palates. It truly is an exciting time to be in the restaurant industry in New York City and across the United States. With restaurants come a diverse set of opportunities for individual and economic growth. restaurant.org

A DEEPER LOOK Adaptation to American tastes

Michael Whiteman, considered the

‘dean of restaurant consultants’, and president of Baum+Whiteman, a New Yorkbased international food, restaurant and hotel consulting company, shares a deeper insight into the city’s culinary scene.

Oriental fragrances and spices In recent years, I have worked in Doha, Abu Dhabi and Dubai and I am amazed to see all the new real estate complexes filled mostly with American retail and restaurant brands, while here in New York, we welcome ethnic cuisines from far away. This is especially true for Middle Eastern flavors. Over the last 20 years, we have been ramping up the flavors of the foods we like best, adding more heat and more fragrances. Combinations of spicy and fragrant are trending strongly. So New Yorkers are becoming increasingly familiar with Middle Eastern spice mixtures, such as za'atar, regional variations of baharat, harissa, ras el hanout, muhammarah and zhug (or schug).

What is more interesting is that these spice mixes are being deployed by American chefs to lift the flavors of their own cooking, often without even telling their customers what they are using. For example, if a chef uses cumin or cardamom or nutmeg in a dish, that individual flavor will stand out sharply, and diners pick it up right away. But just a little bit of baharat or zhug can enliven a dish with a symphony of flavors that are difficult to identify individually, but which greatly enhance the dining experience. In fact, we are inventing our own spice variations. A company called New York Shuk, is making a harissa mixture with preserved lemon.

Top chefs around the country are buying Middle Eastern spice mixes blended by a company named La Boite.

What's trending Hummus has exploded in popularity and there is a very trendy chain of 'hummuserias' developing. Additionally, one of the most trending breakfast dishes in America is ‘shakshuka’ and it is moving beyond morning food to an anytime-ofday dish.

Good to keep in mind We have long had small, typical Middle Eastern restaurants all over New York.

But, if opening a new outlet in this market, it would be great to examine what has happened with Indian cuisine, where adventurous chefs and their financial backers are moving upscale with more inventive food and better interior designs. baumwhiteman.com

WHAT'S HOT Looking at 2017’s hottest industry trends, we see that almost everything old is new again 1. Hyper-local sourcing Chefs are putting extra emphasis on the freshness of their produce. For some, that means they are growing it on the premises (think restaurant roof gardens).

Others are even starting their own indoor hydroponic gardens.

2. Chef-driven fast-casual concepts ‘Fast-food’ may not conjure up images of gourmet items and refined cuisine, but that is starting to change, with chefs now exploring the quick-service space.

Menus are focusing on fresh, high-quality ingredients, as chefs create fine-dining versions of burgers, pizza, sandwiches...

3. Environmental sustainability More diners are searching for restaurant brands that share their beliefs and values. They want businesses they frequent to recycle, manage their food waste and source locally. And chefs, who recognize the benefits of sustainability are winning over new, loyal customers.

4. Simplicity/back to basics Diners and chefs alike are nostalgic over the old days. Think back to before the time of culinary chemistry, when chefs mostly worked with simple preparation methods and uncomplicated recipes.

Source: NRA

Semsom Eatery

ilili

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Almayass Restaurant

BUSINESS

EYE ON

THOSE WHO WENT THERE Hospitality News ME chats with some of the entrepreneurs that have established their restaurants in NYC. We asked them why they picked this city, how they assess their operations, how their outlets in New York compare to those in Beirut and what challenges and opportunities they found. Here's what they said…

Philippe Massoud CEO/Executive Chef, ilili & ilili Box Having moved to New York as a student, I had the good fortune of getting to know the city at a very young age. Noticing the poor representation of the Lebanese cuisine or lack thereof in the city, I jumped at the opportunity to bring my cuisine and culture to light. It is a daunting task to start a business in NYC. Navigating the regulatory red tape, complying with the city’s various departments as well as hiring the right team throughout the process is no easy feat.

Coupled with dramatic wages increases, we are now facing a minimum wage of USD 15 from USD 9 by 2018 - only the fiscally aware operator will survive. Our trajectory is optimistic and we are aggressively moving forward with plans of growth, both locally and internationally. With smooth and efficient operations, we are focused on the

WHO ELSE WENT TO NEW YORK? Aba Turkish Restaurant A premium Turkish restaurant with signature dishes. abarestaurant.com

Arabesque Offers a menu with exciting part of the business; bringing old world hospitality to each and every one of our guests. NYC is full of diversity and we cater to diners from all walks of life, from former US President Clinton to young, struggling artists. One thing is for sure, ilili has put Lebanese cuisine on the map, both in NYC and around the world. ililinyc.com

a modern Moorish dining room, a traditional Moroccan lounge and a menu that carefully intertwines North African, Middle Eastern and Mediterranean cuisines. arabesquenewyork.com

Au Za’Atar An Arabian French bistro, serving family recipes from Lebanon, Tunisia and Morocco with a French influence. auzaatar.com Balade Authentic Lebanese restaurant,

Christine Sfeir, CEO Treats Holding (Semsom) We chose New York since it is one of the most cosmopolitan cities in the world.

It has been very challenging and very

Chant Alexandrian, Founder Almayass Restaurant Picking New York City was a matter of feeling and instinct. We found it to be a suitable destination to have a foothold in, as it could open doors for future global expansion. We evaluated the operation positively. However, we have faced unexpected financial challenges, and to overcome them, you have to continue pushing forward rather than quit. Our client base spans locals from different age groups, visitors from around the US and overseas, and various celebrities.

Operationally, NYC has many more regulations to follow than in Lebanon,

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rewarding at the same time. We have three stores, fully operational within a year and a half, and two others in the pipeline. We face several challenges when it comes to locations, permits, and labor laws, among others. Thus, everything has a solution, and we have been tackling them one after the other. Clients are Americans from all walks of life and this is what makes the experience so enriching. Semsom’s mission is to take Lebanese cuisine all over the world. Having people who never tried Lebanese food, now eating it as a weekly meal is amazing.

Our upcoming plans involve opening more stores in NY and starting to franchise outside NYC as of 2017. semsomeatery.com

which becomes more challenging.

A restaurant gains strength we believe, mostly internally; the quality of ingredients it uses, the service it provides, the atmosphere and the way guests are approached. In general, the level of hospitality and quality, along with reasonable prices, can make a restaurant strong in every market.

Regarding profits, our main focus is guest satisfaction - this is what we view as profitable. Our future plans include focusing on up-keep and strengthening the restaurant in NYC. almayassnyc.com

serving signature dishes and mezze. baladerestaurants.com

Barbès A Moroccan and French fusion restaurant, with a cozy atmosphere echoing the bistros of Paris. barbesrestaurantnyc.com

Byblos Restaurant Offers a wide variety of grilled kebobs, vegetarian dishes, seafood and chef's specials. byblosny.com Manousheh Home-style bakery, serving traditional Lebanese flatbreads, savory and sweet. All baking is done fresh in their oven and most of their ingredients hail from Lebanon. manousheh.com Naya Mezze & Grill A modern Lebanese-Mediterranean mezze and grill, serving traditional Lebanese fare in a contemporary setting. nayarestaurants.com

Ravagh Persian Grill Serves kebobs, stews and dips. From Persian classics, like Kotlet and Khoresht Fesenjan, to Mediterranean favorites, like babaganoosh and hummus. ravaghrestaurants.com Rosemary and Vine Lebanese and Mediterranean restaurant, serving homemade cuisine with artisanal produce. rosemaryandvine.com

BUSINESS

HOTELS

10

CONTRACTUAL ISSUES FOR HOTEL OWNER-OPERATORS The recent wave of operator consolidations and an uncertain geopolitical environment have produced several new legal and contractual issues linked to the hotel owneroperator relationship. Scott Antel, partner and head of Hospitality & Leisure MEA, Berwin Leighton Paisner (BLP), a global law firm, highlights 10 topical issues

1. Brand dilution/de-emphasis Recent mergers (Marriott-Starwood being a good example) have created mega-hotel companies, with a number of overlapping, same-market, brands.

This results in a potential dilution or deemphasizing of one brand at the expense of the other. What to do if you are the current or future owner of a property, under a 25-year term contract, with a brand which the operator has decided to de-emphasize? Who is going to pay for any rebranding? Should not this be a material change, allowing for at least a right to early-contract termination?

Therefore, including brand de-emphasis clauses in contracts addressing this issue is becoming crucial, in order to protect the owner’s rights in such events.

2. Sector vs. Brand Brands will argue that consolidation is in the owner’s interest, by bringing scale economies and greater ability to compete against online travel agents (OTAs). The reality is that your former local ‘non-compete’ brand specific, may be rendered obsolete by a merger, with your operator running a hotel that used to be a competitor next door. What if that former independent-brand competitor offers a better return to the operator than your hotel? Which hotel will the operator decide to focus on and push business to under its distribution system? While one can argue for some synergy and

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scale savings arising from having both brands under one operator, there is no denying a potential conflict of interest.

We are insisting that any territorial clauses restriction must be marketsector specific, and not brand specific, to address this issue.

An owner should have the right to an early termination without cause, albeit with reasonable compensation to the operator 3. Termination without cause Consolidation, the growth of OTA booking channels, and other factors have fundamentally changed the owneroperator relationship, making it less personal. Operators today are more focused on managing their brands rather than on managing the individual hotel. While the operator you originally signed up with for a 25-year contract can, through mergers and acquisitions, change beyond all recognition, you are expected to remain static. However, with the changing economies, an owner should have the right to an early termination without cause, albeit with reasonable compensation to the operator, and not before a time period following stabilization (e.g., five-to-seven years).

4. Performance tests that work The only time I have seen a performance test clause triggered was as a result of currency fluctuations and in this situation, the operator was actually doing a good job! With the changing nature of the industry, the standard percentage of gross operating profit (GOP) and the revenue per available room (RevPAR) and competitive set performance tests (measures inevitably skewed in the operator’s favor), needs to be tightened up and/or expanded. Social media (e.g., TripAdvisor) ratings, as well as minimum thresholds measuring the levels of distribution delivered via the brand’s online distribution systems vs.

OTAs, can reveal a lot about the brand’s performance.

5. Central marketing fees on OTA bookings A brand’s distribution system represents its strong value proposition to the owner, who is asked to contribute to this via charged central services and marketing (CSM). However, the owner pays the same CSM fees today as he did prior to OTAs. Thus, he is paying the OTAs a fairly substantial fee, on top of the operator’s fee for involuntarily outsourcing the booking that the brand once did to the OTA. This very real dilution in the brand’s distribution delivery needs to be reflected in the management contract fee structure.

6. ‘McDonaldization’ of scale It is inevitable that with size comes standardization, commoditization and less personal attention or feeling of a partnering relationship. Your property becomes, on a wider scale, less important to the operator, yet you pay the same as before. In your contract, insist on the right to regular head office visits or clear and responsive channels to make sure your property and its individual issues remain high on the operator’s agenda.

Consider the implications of owning a ‘Trump’ branded hotel in the Middle East or potential country sanctions on operators from certain jurisdictions 7. Pay your taxes It is surprising how many contracts in the Middle East do not include tax clauses on who pays taxes, as well as provisions on seeking potential tax treaty relief. Many operators will say these are not necessary as there are (e.g., in UAE) no taxes. Well, taxes will come within the term of your hotel management agreement and you need to provide for who pays. The market standard should be that the operator pays any tax on the profit-bearing base and incentive fees with reimbursable fees,

such as technical service and central service charges having a ‘gross up’ for any taxes payable. The operator should be obliged to obtain any tax residence or other documentation enabling the parties to claim any tax treaty benefits.

8. Consolidation restructuring costs It is inevitable that operators will incur restructuring costs once consolidation has taken place. This will involve amendments to your agreement and potential costs, including legal and registration fees, and potential additional tax costs. Make sure that any potential costs are addressed and that you as an owner are adequately protected.

9. Recognizing a maturing market The Middle East hotel market is no longer 'emerging'. Many owners today are quite sophisticated and have solid asset management and market knowhow.

Contrast this with operators’ tendency to focus more heavily on managing their brands than managing hotels, and the suggestion is that owners and their asset managers should have a greater say in running the business effectively.

Make sure that your contracts call for regular owner-operator meetings and reporting, and insist on these having a substantive dialogue, including the implementation of valid owner concerns and recommendations.

10. Reverse sanctions Virtually all management contracts have restricted/sanctioned persons clauses, drafted from the operator’s perspective.

With more global uncertainty both in the Middle East and elsewhere, the owner’s own sanctions or reputational issues need to be accounted for: Consider the implications of owning a ‘Trump’ branded hotel in the Middle East or potential country sanctions on operators from certain jurisdictions. This is no longer a one-way street of reputational risk.

About Scott Antel A senior partner in BLP’s Abu Dhabi and Dubai offices, leading the firm’s hospitality practice in the Middle East, Scott Antel brings over 24 years of experience working with emerging markets hotels and hospitality, advising both owners/ developers and international operators in over 20 jurisdictions. blplaw.com

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BUSINESS

MARKET UPDATE

MOROCCO Leading African tourism

While it’s true that Morocco is a fascinating mix of elements from both the Atlantic and the Mediterranean, the country has much more to reveal to tourism investors.

Yann Assor, director and head of corporate finance at PwC Morocco, shares his market insight

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Morocco is the frontrunner in the African tourism market, according to recent data released within the ‘Africa Tourism Monitor’, a report by The African Development Bank. Since 2014, the country has welcomed more tourists than both Egypt and South Africa. Despite the widespread conflicts and insecurity in neighboring countries, Morocco achieved its goal of 10 million tourists, edging the target to record a total of 10.28 million visitors in 2014. The number has risen slightly in the interim. According to the latest figures issued by the Moroccan Tourism Observatory, almost 11 million tourists came to the country in the first eight months of 2016 alone, led by French, Spanish and English visitors. Agadir, Marrakesh and Casablanca were the most popular destinations. Additionally, the country has over 5,500 hotels in various categories, including luxury properties, such as Royal Mansour and La Mamounia in Marrakesh, part of the Leading Hotels of the World chain, Hyatt Regency and Four Seasons in Casablanca. Morocco welcomed more tourists than any other country in Africa, followed by Egypt and South Africa. This outcome is the result of a decade of steady development under the framework of two successive sector development plans: Vision 2010 and Vision 2020. Despite an increasingly challenging regional environment, the sector has proved resilient, bolstered

by domestic political stability. While recording a minor drop in tourist arrivals in 2015, the sector picked up again in 2016, driven by increased air connectivity, further diversification of source markets and a more specialized tourism supply.

Morocco’s tourism sector is the second largest contributor to the economy, representing around 12 percent of GDP, and is also the second largest provider of jobs in the country.

Reasons to invest Morocco is a tourist destination that has many strengths and clear potential, which has allowed it to become increasingly popular. With varied and contrasting landscapes and a rich cultural heritage, the country represents a diverse touristic experience. The government is offering several incentives in a bid to boost

MOROCCO VISION 2020 IN FIGURES Doubling the size of the sector: • 200,000 new beds • Double arrivals • Triple domestic trips

Second economic sector: • 470,000 new direct jobs • Double industry receipts to USD 14 billon • Add two points to touristic GDP Source: Moroccan Ministry of Tourism

investment in the country. These include: exemption of import duty preference for all capital equipment needed for the promotion and development of the project; and VAT exemption for capital goods, machinery and equipment acquired in Morocco for a period of 24 months from the date of commencement of business of the company. VAT is also exempt for import for a period of 36 months for capital goods, machinery and equipment acquired on importation. For investments that meet certain criteria, the investor may conclude with the State, an investment agreement granting implementation aid for the project. To remove the constraints on access to financial resources, Vision 2020 is considering the setting up of an instrument for national and international investment mobilization: the Moroccan Fund for Tourism Development (FMDT).

Investment premiums will be implemented, taking account of the level of risk perceived by investors for each type of product and for each destination. To strengthen its commitment to supporting the implementation of Vision 2020, the banking sector has indicated its willingness to mobilize a budget of USD 2.4 billion.

Aside from commercial banks responsible for financing the sector, funds for national investment have been created to support the dynamic development of tourist projects. These include: Actif Invest; Madaef; H Partners; capital T; and Saham Hotels.

Investment opportunities • Azur 2020 Program To provide an internationally competitive range of seaside resorts for Morocco.

• Program Green/Eco/Sustainability Valuation of natural resources and rural areas in respect of socio-cultural authenticity of host communities.

• Heritage and Legacy Program Promotion of the Moroccan cultural identity through the structuring and valuation of tangible and intangible heritage of the kingdom, together with the construction of coherent and attractive tourist products.

• Animation Program, Sport & Leisure Creating consistent animation offers, varied and complementary to the basic tourist infrastructure, in order to consolidate Moroccan tourism and make it more competitive and attractive to many tourists.

• Niche Program with high added-value (or business and welfare) Strengthening the position of Morocco as a tourist destination for business, welfare and health.

international ambiance and experience.

Marrakesh has undoubtedly evolved to become an international city and a true tourism icon. “Over the years, and thanks to forward-thinking tourism strategies, Morocco has successfully positioned itself as a genuine tourism destination, managing to attract international labels and brands,” Fakir said. He added that the country remains one of the safest in the region, a factor that has had a highly positive impact on arrivals and investors alike. Besides lodging and entertainment, the country is renowned for its upper-end gastronomy. “The country is ‘touristically’ loaded: It has year-round sun, close proximity to Europe, is full of culture and safe,” he said. New projects include the famous Raspoutine, which recently opened in Marrakesh, after launches in Paris and Rome, while another initiative the VIP Room - is set to open soon. nikkibeach.com

• Biladi Program Strengthening domestic tourism through a suitable product that takes account of habits and customs.

Why you shouldn’t miss out on Morocco “Our resort became a true destination, reflecting cosmopolitan Morocco,” said Nordine Fakir, partner and general manager of Nikki Beach Marrakech, one of the first brand outlets to open in the MENA in 2004. It is, since its opening, frequented by a clientele looking for an

GOOD TO KNOW The strength of the euro against the Moroccan dirham, combined with the increasing number of low-cost airlines and routes between European countries and the kingdom, will continue to drive up the number of inbound arrivals in the next five years. However, since, historically, the government has neglected to provide adequate incentives for banks and private developers to invest in the Moroccan tourism industry, the country is lagging behind in its plans to start developing untapped tourist areas as a means of easing pressure on the more saturated ones. This includes the development of luxury resorts, which the government is trying to diversify its offering to European tourists and, in the longer term, Asians. ma.pwc.com • The direct contribution of Travel & Tourism to GDP was USD 2.2 billion (3 percent of total GDP) in 2015, and is forecast to rise by 4.2 percent per annum, from 2016-2026, to USD 3.5 billion in 2026.

• In 2015, travel and tourism directly supported 107.8 million jobs, with forecasts suggesting the number will rise by two percent per annum to reach 135.8 million by 2026.

• Travel and tourism investment in 2015 was USD 774.6 billion, or four percent of total investment.

WTTC - Travel & Tourism Economic Impact 2016

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BUSINESS

SERVICE

MIDDLE MANAGERS DETERMINE

YOUR SUCCESS First, let’s consider these questions:

Buried treasure

Who do we mean when we talk about middle managers?

These people are your treasure. They can be harnessed to deliver outstanding results for your organization, but there is one essential ingredient required to make this happen: Education. You need to have an unparalleled passion for ensuring that these individuals get the best information and growth opportunities that you can reasonably provide. They need to be engaged within your organization and given responsibilities that allow them to shine.

• Team leaders, shift leaders, supervisors and assistant managers

Why are middle managers so important?

The need for someone to ‘do the job’ can be your greatest enemy. In many organizations that have grown beyond owning a single outlet, one of the biggest challenges operators face is finding good managers. Hospitality Master Trainer Mark Dickinson, focuses on the power of Transformational Training and tells us more Middle managers are the most likely subject of quick hires and are often on-boarded or promoted without in-depth research.

One thing is certain; no matter how these middle managers get to their positions, they remain pivotal to your success in building an excellent organization. They may be the deciding factor between your success and failure, and yet senior management continue to give minimal attention to hiring personnel for these positions.

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• Because they actually lead the employees in your team • Because their influence can lead to powerful results or mediocrity

How did many of them become a middle manager?

Give them significance

Who hires them?

When middle managers are empowered through praise, recognition and affirmation, they begin to deliver at much higher levels.

This is great and gets a lot of people really excited; namely the middle managers and the people that work under their supervision.

However, we also discovered that this spurt in growth frequently created instant resistance from a surprising quarter: their managers. Yes, that’s right. The managers of the middle managers become highly insecure once the middle managers start to grow. You may ask yourself, ‘Why?’, as we did, and then dig a little deeper. What we discovered is that as soon as the middle managers start to grow, those ruling them felt pressure from a newly empowered junior employee, who now aspires to experience managing an operation on his or her own. The effect was most noticeable on managers who had held their position for over two years.

• Anyone can hire a middle manager. They don’t need much in the way of approval because a middle manager’s salary is relatively affordable. They are a cog in the system

There was an increase in squeaky wheels.

A squeaky wheel is that insidious act of undermining others without actually appearing to say anything bad, such as

• The majority of middle managers were promoted from within the ranks

How much focus is on middle managers in organizational thinking?

• Generally not very much. Top management have a lot to do and these folks are expeditors of policy, therefore organizations rarely engage such employees at an important decisionmaking level

What are the challenges that middle managers face?

• They have a junior position and are seldom invited to meet with senior management, therefore their opinions languish or fester • ‘No one listens to me’ is their frequent complaint • They are expected to work longer hours as a sign of their commitment and loyalty

How was the resistance characterized?

MANAGEMENT DEVELOPMENT PROGRAM 1. Thinking - Flow, Click, Think - teach people how to think.

Most people have never been taught how to think. It is a rich creative process that taps into the inner strength of the brain

2. The Mechanics of Change - explaining to people how to change brightens up their lives. We are told that we are too fat, too thin, too loud, too this and too that. But the reason people don’t change is because no one has taught them how. Teach people to change by showing them how to focus, what kind of help is available to them and how to deal with inner conflicts.

3. Influence - get people to practice influencing others (for good). Teach your team how to get what the organization wants through using neuro skills to affect their outcomes

4. True Leadership - explain what real leadership is all about. It’s not about a list of skills, but rather about the personal passion to do what is right, that will eventually determine who will lead 5. Get away from the profit and loss (P&L) mindset that pervades our industry and teach your people to make a relationship between material costs and income, between money spent and money earned. Engaging your management team on this level will leverage your cashflow 6. Affirm to your team that it is good to be still and observe dropping hints about poor performance and naming non-producers. We actually discovered managers criticizing juniors for attending training and not working.

This effectively put the brakes on the rising star, with the objective of proving to those that will listen why the manager is more important than the middle manager.

We also undertook some tests (management exercises), including one where we asked organizations to get their management team to draft the best possible company structure they could think of, without imposing any limits, for their businesses. Through this exercise we found that the teams always eliminated many management positions that would result in making their company simpler to run.

Wherever the teams were empowered to implement the plan they had created, it led to an in-to-out change that was self-inspired and therefore highly effective.

We developed the study a bit further and suggested that some senior managers go on vacation for extended periods, ostensibly to clear vacations, but in reality to see what would happen to their division/department’s performance in their absence. The results were again quite surprising. Rather like popping the cork on a bottle of champagne, all the good stuff in the bottle was now accessible, and the middle managers began to shine. With no manager impeding their progress, change was rapid.

Now there were some organizations where we discovered highly-engaged seniors and great juniors working together in harmony. The result? A supercharged business. Here we studied why they were able to work together and what made them different. Two key things stood out above all else. In the highly successful business, the teams were humble and grateful. Humility gave them the power to listen and to respect one another, even when they did not agree. Gratitude bound them like glue. Everyone had a feeling of thankfulness for their work and the company.

your operation from time to time. We run a program called Sit & Watch® that teaches managers how to observe their own operations from different perspectives

7. Key to success is the ability to manage what people do with their time. Lead your managers into effective planning of time usage and you gain 1000 percent return on your investment into them 8. Today neuro-linguistic programming (NLP) and embedded commands are all around us. It’s not hocus-pocus, it’s real.

Powerfully tap into the neuro energy around you and use it for the good of your business. Massive sales result from taking intelligent actions on a consistent and sustained basis. Show your people how.

9. While motivation and delegation have been management speak for decades, rather we should focus on how NOT to demotivate and how to spread empowerment to the lowest possible level so that business thrives.

10. Most evaluation processes are a total and utter waste of time. So stop doing them. Get your management team into the habit of having instant and continual dialogue about performance and you will see massive change. It is not coincidental. You get what you focus on, so focus on what you want.

11. Show your team how to select the greatest people possible to join your team. Destroy all the archaic hiring processes and come up with consensus-based hiring, where teams decide who they would like to work with, and empower them to select their own leadership 12. Express the value of details and imprint it into the daily mindset of your most junior people. They will love the focus and will become obsessed with doing things to the highest possible standards.

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SOLUTIONS

F&B

MUST-DOS

IN FLUCTUATING MARKET CONDITIONS goals. Remember, marketing is food, not medicine. It’s not something to invest in only when things go wrong. Instead, marketing needs to be undertaken regularly to sustain a successful business.

3. Be creative to stand out, but don't create a price war

Abdul Kader Saadi, managing director of Glee Hospitality Solutions, experts in the F&B industry in the Middle East, lines up his top tips to help restaurant owners and investors steer their business through the region’s shifting economy

1. Don’t panic and remember your greatest asset When the market gets tough, some business owners think of cutting key staff positions as an immediate solution. On the contrary, at this crucial time it’s important to retain employees that are integral to the business’s success. Many times, decision-makers fail to identify these staff members. Incentivize staff by giving them a share of the profits or sales. For instance, reward the employee who sells the highest number of dishes a day, or upsells the highest number of desserts. Upselling, however, requires proper training to avoid an employee coming across as a heavy-handed salesperson.

2. Invest wisely in marketing Some businesses are destined to crumble because they give importance to short-term return on investment. The key is to invest in marketing with a focus on long-term

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The hospitality industry is known to be competitive. As a restaurant owner, it’s more important than ever to create attractive and unique offers to stand out from competitors.

Customized packages are the way to go. Simply offering a business lunch will not cut it in today’s market. Every venue has great deals on a business lunch. To stay ahead in the game, a restaurant needs to have an edge on its competitors, either by introducing a wider choice of dishes or adding healthier options, which is a food trend for 2017. Some winning features are quicker service for people on the go and faster office delivery.

4. Be open to change Being able to adapt is not only advisable, but mandatory for businesses trying to succeed in the current economy. In the hospitality business, this applies across all categories; from casual dining startups to internationally-acclaimed finedining. The challenge lies in reacting effectively to unexpected change.

Companies that survive in the long run often plan for flexibility.

5. Maintain high quality To gain loyal customers, a restaurant must focus on consistency, both in its offerings and the attention it gives to customers. While food quality is central to success, it is the dining experience that counts. This cannot waiver, no matter how tough the market gets.

6. Manage expenses sensibly Smart restaurateurs kick off their venture with a well-defined annual operating budget, which is separated into phases with reasonable revenue goals. When the entire team is aware of this plan, they have a clearer picture on how to manage expenses efficiently.

Also, overlook the allocation of funds and assign them where you are likely to get better returns.

PROS AND CONS FOR SPECIFIC SECTORS PROS

CONS

HIGH-END RESTAURANTS Having a celebrity chef can help you get the most out of PR and marketing opportunities.

The venue is chef-driven, resulting in less control for the investing parties.

Being part of a niche segment guarantees less competition, especially from international brands.

The sector demands high capital expenditure.

Having a liquor license means there are higher margins for profit.

The market, especially in Dubai, is currently saturated with high-end venues.

Fine-dining venues are usually frequented by a large number of tourists and business travelers who tend to spend more than residents.

Highly-skilled labor usually means higher salaries.

The average check is higher than other venues, which means higher profit margins.

Fine-dining restaurants are more difficult to roll out and franchise, which makes it more challenging for investors.

A high-end restaurant benefits from uniqueness in terms of design and menus.

These venues are considered for special occasions, and so have less frequent visits than other sectors.

Fine-dining venues are managed by a more skillful team of employees.

As there is usually no delivery business, the revenue depends on restaurant visits.

CASUAL AND FAST-CASUAL RESTAURANTS This sector appeals to customers from all walks of life.

High-street locations tend to have destination outlets which usually produce less footfall.

It demands average to reasonable investment.

It is easier for someone to copy the concept.

There are still gaps in the market when it comes to high-street casual dining.

There is a constant struggle to balance high rents with average checks and variable footfall.

An average check is affordable by the majority of the market.

This sector faces strong competition from international and established brands.

QUICK SERVICE RESTAURANTS The labor need not be as skilled as in other sectors.

These venues see strong competition from international brands.

This kind of restaurant can be operated by a smaller team.

The food is conceived as unhealthy.

An investor can work with low capital expenditure.

It suffers from low margins.

The venue is driven by value more than its food quality.

Once it has proven to be successful, a quick-service restaurant is much easier to franchise out.

It has a very strong delivery business.

It’s harder to balance the profit margins with high rents, especially within shopping malls.

GLOBAL RESTAURANT INVESTMENT FORUM

10-12 April 2017 Fairmont, The Palm, Dubai, ORGANISED BY

POWERED BY

FACILITATING INVESTMENT DECISION-MAKING WITHIN THE RESTAURANT SPACE The Global Restaurant Investment Forum (GRIF) facilitates investment decision-making within the restaurant space.

The forum showcases the hottest restaurant concepts from around the globe and gives attendees a place of focus to connect with investors, owners, franchisors and senior hospitality professionals, assess the state of the hospitality industry and secure deals for the coming year. GRIF is proud to once again be powered

by Michelin in 2017, enriching the event with its extensive network and world class chefs.

GRIF 2017 will again host a celebration of the brightest and best of the industry at the 2017 Global Restaurant Awards through partnership with The Caterer. The Global Restaurant Awards are an opportunity for the industry leaders to get together and celebrate those organisations that have shown innovation, vision and leadership in their businesses and concepts. Recognising the brands that have really engaged with their consumers through social media, technology, design or sustainability.

GLOBAL RESTAURANT AWARDS IN ASSOCIATION WITH

REGISTER NOW! www.restaurant-invest.com/register www.restaurant-invest.com |

#GRIF17, @GRIF_news | www.global-restaurant-awards.com

SOLUTIONS

TECHNOLOGY

NFC & BLUETOOTH TECHNOLOGY FOR HOTELS Wireless protocols for keyless entry

Jeffrey Robinson, hospitality sector leader for Aurecon, tells us how near field communication (NFC) can benefit the hotel industry NFC must-knows NFC is the next-generation, short-range high-frequency wireless communication technology that gives users the ability to exchange data between devices.

Communication between NFC devices can transfer data at up to 424 kbits/second.

The communication is enabled when two devices touch each other, which makes mobile payments (by touching the smart phone to an NFC-enabled credit card reader) an instant, secure process. Some of the common ways NFC technology is currently used by companies and consumers include payment checkouts, sending files, photos, contacts and music, etc, to another device with a simple tap, downloading information, opening doors, getting tickets or passes and parking meters.

NFC in hotels?

The processes of check-in and checkout can be made seamless through mobile device usage. Guests can check-in online.

Hotel keys can be directly transmitted by phone. The impetus behind keyless room entry adoption is all about giving guests more control over their stays and often works in tandem with mobile check-in capabilities. An added benefit is streamlining the check-in process and eliminating the need for front-desk check-ins.

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NFC is one technology that allows keyless entry technology to hotels. This technology is incorporated into the smartphone handsets manufactured by Samsung, HTC, Google and LG, etc, running the Android operating system and Apple iPhones from the iPhone 6s and above. Microsoft devices running windows mobile can also have NFC. Another technology which hotels are using for keyless entry is Bluetooth Low Energy (BLE). Any iphone or Android phone with Bluetooth can utilize the Bluetooth-enabled hardware. This technology has additional benefits over NFC, such as longer battery life for locks.

Hotels adopting this tech Starwood’s Starwood Preferred Guest loyalty program allows SPG Keyless entry to the company’s Aloft, Element, W Hotels, Le Meridien, Westin, Sheraton and Four Points

by Sheraton properties around the world.

Starwood worked with a Swedish lock company, Assa Aboly, to retrofit existing locks for Low Energy Bluetooth. To date, the SPG Keyless technology is available in more than 160 hotels in 30 different countries, with more than 350,000 registered SPG members who have registered for the technology. Hilton’s Digital Key requires users to have a Hilton HHonors loyalty membership and have the Hilton HHonors app downloaded on their smartphones.

Hilton Worldwide had widened its number of keyless entry hotels throughout the U.S., Canada and Singapore to 700 at the end of 2016. They plan to have 2,500 hotels with keyless entry rooms by the end of 2017.

Hilton’s Digital Key also uses a Bluetooth connection between the guest device and

the door lock. Marriott International has 204 hotels that offer keyless entry and will roll out across Marriott’s millennial-friendly ‘Moxy Hotels’ brand. Hyatt has also dabbled in this space and a spokesperson for the company said, the company has completed a variety of prototypes for guests to access their rooms, including Wi-Fi enabled airport shuttle buses where the keys are printed on the bus while it is in transit are available at the Grand Hyatt San Francisco, Hyatt Regency Bellevue and Hyatt Regency Savannah. InterContinental Hotels Group is also piloting keyless entry at select properties.

Eye on the future Keyless entry will evolve to the point where technology is no longer brand-specific, as it is now. Apps are developing whereby guests can use the keyless entry technology at a variety of hotel brands, regardless of the different technologies or locks with each brand. In our increasingly crowded digital world, smartphone consumers want fewer apps on their phone. They would value the ability to have one app that works across multiple hotels, instead of separate apps for every hotel they stay in.

ABOUT AURECON Aurecon is a global engineering and infrastructure advisory company, providing advisory, design, delivery and asset management services in locations worldwide, including Qatar and UAE. aurecongroup.com

PRODUCT ZONE

NEW PRODUCTS

ON THE MARKET We scour the marketplace for new items so you don’t have to

FlyWheel Slicer Handmade in Italy, the Manual Flywheel Slicer is compact, elegant and robust, making it suitable for any deli, supermarket or gourmet foodservice operation.

Vresso sal vresso.com

The KitchenAid Tri-Ply Copper Cookware Combines the unrivaled conductivity of copper with the heating efficiency of aluminum and the durability of stainless steel. This premium set includes: 30cm Skillet with lid, 1.5-Quart Saucepan with Lid, 2.8-Quart Saucepan with Lid, 3.3-Quart Sauté with Lid, 7.5 Stockpot with Lid.

RoomOperations IDROCHEF from ”VALKO” The Soft Cooker IDROCHEF, coupled with any container of up to 50L capacity, can cook at controlled and perfectly uniform temperatures throughout the whole container, due to the movement of the water. It's ideal for the vacuum (sous vide) cooking at low temperatures, containing a thermostat with integrated timer and acoustic alarm functions.

Ojamco ojamcolebanon.com

Vresso sal vresso.com

RoomOperations offers a one-stop solution to better manage housekeeping scheduling and task assignments, inventory control, engineering, minibar operations, guest requests and lost and found in one application which is cloud and mobile-enabled.

Evonade roomoperations.com

WebTrack WebTrack is the newest addition to the hundreds of features BIM POS periodically releases.

This feature will allow your customers to track their orders upon calling, or when their order leaves the restaurant, without any pre-installed app on their smartphone.

BIM POS sarl bimpos.com

WMF Kenwood Major Titanium Km020 Key features and benefits include a 1500W motor for large quantities, four power outlets for versatility, over 20 optional attachments, flexible beater for creaming mixes, superior 'planetary mixing' action for professional results and large capacity 6.7liter stainless steel bowl with splashguard.

Magnet sal fattal.com.lb / kenwoodworld.com

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The deep and shallow casserole pans come in diameters of 16-24cm and are ideal for searing meat and cooking fish and vegetables on a low temperature. The transparent lid, made of high-quality, heat-resistant glass and featuring a stainless steel rim, sits firmly in the pan, and the hollow handles, with ample finger room, ensure a secure grip, never get hot and are ovenproof.

Eastern Import Me, sal easternimport.com

FLEXSURV - Digital Comment Card A tool to design customized questionnaires to measure ratings and produce comprehensive analytical reports from polls.

BIM POS sarl bimpos.com

PRODUCT ZONE

NEW PRODUCTS

Le Frappe de Monin – Coffee Base Siblou - Breaded Cod Fillets Quick and convenient, Cod Fillets are rich source of protein, healthy fats and several vitamins and minerals.

Halwany Consumer Products sal halwany.com / siblou.com

Coffee Frappe Base for special gourmet beverages.

The Roaster sal the-roaster.com

Callebaut Salted Caramel Crispearls

Americana Giant Beef Burger For the first time in the region, Americana has released the 148g Giant Burger Patty; bigger and wider than any other burger, perfect for big-bite lovers.

National Food Company – Americana Foods Arabia americanafoods.com

Salted caramel chocolate on the outside, a crispy biscuit toast on the inside. Also available in dark, milk, white and strawberry flavored chocolate.

EMF emf-me.com

Men Matbakhna Tanmia launched its “innovation corner”, offering Lebanese consumers a creative extension to its fresh, healthy and easy to cook products under the concept of “Men Matbakhna". Following the consumers’ feedback and evaluation, red and white Tawook along with Smoked Chicken breast and Chicken Rosto were chosen to be launched in supermarkets.

Tanmia tanmia.com

Meia Duzia Meia Duzia from Portugal offering more than 40 different experience flavors of honey, tea, chocolate and jam.

Mike's Hot Honey

Alb co sarl albcolb.com

All the way from Brooklyn, New York, Mike's Hot Honey is honey infused with chilies - a topping for pasta, pizza and even ice cream.

Wesley's Wholesale wesleyswholesale.com

Zejd Delices: Black Olive Jam Made with Lebanese Black Souri olives, the sweet fruity taste makes this jam the ideal dip, accompaniment to white soft cheese or dessert topping.

Olive Trade - House of Zejd zejd.net

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Japanese Ozaki Beef Ozaki beef is the only brand in Japan marketed under the name of the farm owner Mr. Ozaki. The cattle are fed a mix of grass from the pastures, barley, corn and 11 other natural ingredients. Everything is free of antibiotics, preservatives and other chemicals, while the farm also uses organic fertilizer.

Jmfoods llc jmfoodgulf.com

Taza Chocolate Taza stoneground, organic chocolate is manufactured in Somerville, Massachusetts, and all Taza's products have a one-of-akind granulated rich texture.

Wesley's Wholesale wesleyswholesale.com

LOUVRE HOTELS GROUP

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Royal Tulip Korbous - 167 Rooms

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Golden Tulip Taj Sultan - 250 Rooms

Golden Tulip El Mechtel - 344 Rooms

Louvre Hotels currently operates 6 Hotels & Resorts across Tunisia, leading the way in both leisure & business segments.

Louvre Hotels is one of the Fastest growing hospitality groups worldwide with a target of 150 new openings yearly. Based in Paris with strong support from our Chinese partners, Louvre Hotels provides cutting edge modern hotels including budget focused brands to upscale services & luxury experiences.

KEY FIGURES Top 5 hotel operator worldwide.

Louvre Hotels Group is a subsidiary of Jin Jiang International Holdings Co., Ltd., one of China’s largest tourist and travel conglomerates.

Headquartered in Paris, France, the group operates 6 hotel brands, each leveraging the strength of their differentiated positioning and a shared passion for innovation.

Louvre currently manages over 60 hotels in the MENA Region with another 35 properties in the pipeline by 2020.

PRODUCT ZONE

EQUIPMENT

CUTTING

EDGE KITCHEN

TOOLS

Often described as an extension of a chef’s hand, a top-quality knife is invariably the number one item on a kitchen professional’s list of essential tools. Yet, choosing a chef’s knife will also be largely determined by individual taste, as both manufacturers and users acknowledge, with a sizeable variety of styles and lines on the market.

Making the right choice has become especially important today, given the move in kitchens towards using one standard, multifunctional knife of around eight inches in length for a variety of tasks. While in the past, practitioners kept a set of knives to hand and used a chef’s knife primarily for slicing and disjointing large cuts of meat, today the trend is often, though not always, to work with one general-utility knife, be it for slicing, chopping or mincing.

Many chefs have adopted this method, perhaps keeping just a couple of other tools handy, such as a serrated knife for slicing bread and cakes, and a paring knife for peeling, coring and slicing smaller items. Such heavy reliance on one knife has heightened the need for high-quality cutting tools of the trade, although there is still plenty of room for personal preference when it comes to making a selection.

In recent years, chefs have opted for either traditional Japanese knives, known for being light and nimble with a thin, razor-sharp edge, or the characteristically heavier European variety with a slightly thicker blade, depending on individual taste or the cuisine involved.

The grip and fit of a knife are also important considerations for chefs, given the amount of time they spend in the kitchen. A knife should fit well in the hand to help avoid slips and cuts. Some professionals like to have a wide bolster, while others, especially chefs with smaller hands, will be looking for a streamlined handle that offers a snug fit.

Chefs with larger hands, meanwhile, may well prefer a model with long handles and wide blades.

The steel used in manufacture is another factor to consider when choosing a knife; hard-steel knives require less maintenance, but can also be more challenging to sharpen. Some models have cladding, which helps to keep the knife sharp for longer. Chefs will also want to check about corrosion resistance. Aesthetics, meanwhile, are very much a matter of personal taste, but shouldn’t present a problem, given the broad range of contemporary and classic models on the market.

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While chef’s knives are largely a matter of personal preference, there’s plenty of choice for professionals looking for a model that’s as sharp and sturdy as it is aesthetically pleasing

THE MANUFACTURER’S VIEW “We are finding that many chefs prefer the forged line and Fibrox products, while some also like to work with knives with wooden handles. Sales figures and our experience indicates that recent years haven’t led to a significant change in the choice and use of products in this section.

However, because hygiene regulations are stricter today, we believe that professionals prefer knives with plastic handles instead of wooden handles.

The cutlery business is a growing business for Victorinox, so we have invested in this production. We expect best-selling items to be more or less the same, namely: carving knife 5.2003.25; carving knife 5.2063.20; pastry knife 5.2933.26; and boning knife 5.6613.15. Our paring knives also remain popular.”

Urs Wyss, head of sponsoring, cutlery division Victorinox, Swiss knife manufacturer

THE DISTRIBUTOR'S VIEW "Chefs mostly look for ergonomics, edge durability, easy maintenance in terms of honing and sharpening and of course sharpness. All these qualities and more are present in the Wüsthof range of knives.

Style has affected the market in terms of design, but professional chefs still lean towards the balance that the classical Wüsthof knife offers, since design is not one of their major concerns. Some new knives are built to maintain sharpness over a longer period of time, however, once they become dull, they are extremely difficult to sharpen. Of course, the Classic and Classic Ikon range will sell in 2017 because they offer similar benefits, with an exquisite design to complement the great features."

Demi Korban, communications director, COMACO, exclusive agents and distributors of Wüsthof in Beirut

PRODUCT ZONE

EQUIPMENT

THE CHEF’S VIEW "A knife is like a good friend you find a good one and you don’t want to lose it. My first set of knives, made of carbon steel, were very sharp and easy to sharpen, but with time, the steel changed color and there was a risk of rust if not maintained correctly, and so I moved on.

I have found MAC to be the sharpest of blades - they are also Anthony Wright very easy to sharpen and retain Chef, Senior Lecturer their edge. I like the laminated, University College wooden, riveted veneer handle.

They cut with very little effort Birmingham and or pressure, excellent for Bocuse d’Or 2017 UK fine, detailed veg preparation representative and garnishes. They are well balanced and have a nice feel to them and these are currently my preferred choice. I dislike chunky knives with metal handles and knives that are difficult to sharpen.

Once you’ve got a knife in your hand, you should immediately get a sense of its fit. It should feel so comfortable that it’s like a natural extension of your hand.

Victorinox Rosewood Handle is a very good all-round knife, providing excellent value for money. I feel that there are also some excellent Japanese knives on the market, such as I.O. Shen."

ON THE MARKET

ZWILLING J.A. HENCKELS BONING KNIFE This German firm has been synonymous with manufacturing exceptionally high-quality knives since 1731, and has a fan base that includes both renowned professional chefs and amateur cooks the world over.

With its slim blade, this boning knife helps users to remove bones or sinew and fat without losing any precious meat or risking injury. zwilling.com

WÜSTHOF CLASSIC 20CM CHEF’S KNIFE Used by famous chefs worldwide, the classic 20cm Chef’s Knife, manufactured by the 200-year-old, family-owned German specialist firm Wüsthof, remains a highly popular choice among professionals.

Known for its durability and balance, the blade has a strong curve which greatly helps to produce a rocking motion much valued by busy professionals. wusthof.com

THE EXPERT’S VIEW MISONO UX10 8.2-INCH GYUTOU Staying sharp, even with repeated use, and made from high-quality Swedish steel, the Misono UX10 8.2-inch Gyutou is one of the most popular knives from this producer, which is based in the Japanese city of Seki, known for fine-knife manufacturing. A heavy composite wood handle provides a comfortable grip. Comes in both right-handed and left-handed options. korin.com

Jay Patel Founder & Owner

Japanese Knife Company “Chef’s knives are essentially a tool, so functionality has to be top of the list of criteria when making a selection, followed by ergonomics and aesthetics. In terms of functionality, we find that the level of sharpness, the quality of the steel and how easy the knife is to keep sharp are all important. Since chefs are using their knives constantly, comfort is also crucial, determined by the hold and balance. When it comes to personal taste, Japanese blades tend to be thinner - perhaps 1.5mm – 2mm at the top of the blade, while others are closer to 3mm – 4mm.”

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VICTORINOX CHEF’S KNIVES Based in Schwyz, in the heart of Switzerland, and originally known for developing the original Swiss Army knife, this company is now also a key name for cutlery, including professional chef knives. Models include the highly popular Fibrox carving knives, popular for preventing slips and other elegant options with rosewood handles. victorinox.com

PRODUCT ZONE

SPICES

SPICE IT UP With the rise of globalization, awareness of ethnic dishes and the different spices used in their seasoning is rising

According to Syndicate Market Research, “the overall spices market is expected to grow at a fast pace, due to its rising demand for convenience foods. The main opportunity that lies with spices is its application as a natural preservative for meat and poultry which is expected to grow exponentially with the growing food industry.”

Chef Kevan Vetter

Tess Posthumus

Executive Chef

Hospitality Consultant, International Bartender and Owner

McCormick "Featured in McCormick’s Annual Flavor Forecast, the espelette pepper delivers a distinctively smoky, sweet and mildly hot flavor. Originating from the Basque region of France, the espelette pepper is a key spice for a herb rub used in enhancing grilled meats, vegetables, seafood and poultry that is grilled on a cast-iron plancha. As an alternative to the Basque spice, a hot paprika, such as the Hungarian Paprika, makes an acceptable substitute."

Perfect Serve Barshow "Spices are increasingly being adopted as distinguishing components within cocktails.

Bartenders are trying to make their own syrups and infusions with locally-sourced spices. Additionally, in winter, bartenders are able to capture deeper and darker flavors by using spices such as cinnamon, cloves, nutmeg and star anise."

SPICE BLENDS CHEF’S LOVE Berbere 5g toasted and ground cumin 10g ground ginger 5g toasted and ground caraway seeds 10g ground sweet paprika 3g crushed dried chili flakes

Chef Maroun Chedid Managing Partner

Maroun Chedid sal "The secret to using spices is to achieve the perfect balance of flavors. The long pepper and the Nepalese timur pepper – similar to the Sichuan pepper in flavor – are reemerging spices, along with mace - the skin of nutmeg. The long pepper is similar in flavor to regular black, but hotter, and is known to contain anticancer chemicals.

Founder of Adonis Valley

Known for its medicinal properties, star anise is also becoming very trendy in Asian cuisine. As Mediterranean cuisine gains traction in countries in the west, sumac is also becoming a popular spice to flavor salads and meats. When it comes to salt, fleur de sel is becoming a trendy garnish ingredient, used for a variety of dishes, including vegetables, meats and poultry, and even desserts."

"A staple ingredient in Mediterranean cuisine, the Middle Eastern za’atar mix is a spice that is seeing an increase in demand. From sandwiches to mezza, breakfast to dinner, za’atar is a versatile ingredient that goes well with almost any dish and is valued for its medicinal properties. However, the za’atar consumed by around 70 percent of the Lebanese population is low grade, due to it being widely and commercially available."

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Dukkah

Fady Daw Agricultural Engineer

5g toasted and ground whole hazelnuts 15g toasted and ground dried coriander seeds 15g toasted and ground white sesame seeds 10g toasted and ground cumin 5g crushed dried mint 3g ground dried thyme leaves

Ras el Hanout 10g ground cinnamon 10g toasted and ground cumin seeds 4g ground rose buds 5g ground cubeb berries 5g ground allspice 5g ground cloves 3g ground dried thyme

Discovering Iran’s Potential The first Iran Hotel & Tourism Investment Conference (IHTIC) will be held at the Parsian Evin Hotel, Tehran in Iran on 7-8 February 2017.

IHTIC will attract an international audience of senior figures and decision-makers involved in all aspects of hotel and tourism investment in Iran. The conference will focus on hotel development and tourism attraction in the country. Join us in Tehran and hear from industry experts on the opportunities available in this region, find out what lessons they have learnt about doing business in Iran and how they have overcome development and operational challenges. Find out how government is stimulating foreign investment into the country, what incentives and projects are available.

ORGANISED BY

REGISTER NOW! www.iranian-conference.com

PRODUCT ZONE

BEVERAGE

THE WHITE STUFF With consumers’ demands constantly changing, producers of milk, its alternatives and milk-based products are finding that diversification is the key to staying ahead

According to a report by Tata Consultancy Services, titled ‘Propelling Growth in the Dairy Industry A Perspective’, the global dairy industry was expected to reach USD 505 billion by 2017 at a compound annual growth rate (CAGR) of 5 percent. Milk volumes in the period were forecast to increase at approximately the same rate, the report concluded.

Separate data published by the International Dairy Federation estimated global milk production in 2015 at 818 million tons, up 2 percent on volumes the previous year. While imbalances in supply and demand have produced challenges for the industry by pushing down prices, milk and milk-based products continue to fly off the shelves, especially in the Middle East and Africa, a report published by Euromonitor International showed.

“At over 3 percent CAGR, the Middle East and Africa is the third fastest growing region for dairy and has overtaken Eastern Europe to be the fifth largest region as of 2016,” the firm noted in its analysis, titled ‘Dairy in the Middle East and Africa’, published at the beginning of 2017.

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However, shifts in customers’ demands have seen producers and importers required to adapt to a changing market.

A sharper focus on health and wellness, alongside a push for greater choice and an increase in our understanding about allergies, has led to the dairy industry evolving beyond recognition in recent years, resulting in an even-more diversified product range.

Demand for healthier alternatives has been a key gamechanger for manufacturers of milk and milk-based products. While full-fat milk was once the norm, producers are today offering semi-skim and skim varieties for consumers who are keen to control or reduce their fat intake. As a general rule, whole or full-fat milk contains approximately 3.5 percent fat and around 370 calories per pint, compared with semi-skim (1 or 2 percent fat and around 255 calories) and skim (0 – 0.5 percent fat and around 195 calories).

The world’s biggest brands have long been offering lower-fat options in both milk and other products, such as yogurts

and spreads. In Lebanon, Liban Lait, manufacturers and traders of milk and dairy products, offers customers Candia Viva Semi-skimmed Sterilized Cow’s Milk, fortified with 11 vitamins, among others.

The milk, which is produced at the firm’s plant in the Bekaa under a franchise agreement with Candia, is available in one-liter and 125-ml sizes and has broad appeal, according to Rabih El Helou, brand manager for Candia at Liban Lait.

“It has a shelf life of six months because it has been UHT treated. It’s also healthy and beneficial for kids and perfect for a well-balanced lifestyle,” he explained.

While increasing numbers of consumers have turned to low-fat and light alternatives in segments such as yogurts and desserts, demand for sophisticated and adventurous flavors remains high, with those of us who enjoyed the choice available in full-fat lines seemingly unwilling to compromise on taste.

Innovation remains key to keeping consumers satisfied and prevent them from straying elsewhere, the big brands appear to have concluded. Described

PRODUCT ZONE

BEVERAGE

as “All the smooth yogurt creaminess of original but with only 90 calories”, the light range of yogurts from FrenchUS giant Yoplait includes options with mouthwatering names, ranging from Red Velvet Cupcake to Boston Cream Pie, alongside the more traditional blackberry and strawberry options.

Acknowledging local tastes is another strategy adopted by producers, including the Activia brand, owned by Danone Group. “Although plain and strawberry are the most popular flavors globally, each nation has a different palate and we make sure our range reflects this,” it has said. Among its targeted options, the brand produces Activia Kefir and Activia Laban for the Saudi Arabian market, since, it said, people like traditional dairy drinks there.

Activia yogurts are known for containing the brand’s exclusive strain of Bifidus ActiRegularis which is designed to improve digestive health.

Digestive issues have also prompted the rise in popularity of lactose-free dairy products, buoyed by increased understanding of lactose intolerance.

Research has indicated that the inability to digest lactose, a type of sugar mainly found in milk and dairy products, is a comparatively common problem.

El Helou confirmed that in line with global trends, demand for lactose-free products locally has been growing. He added that Liban Lait has decided to include Candia Lactose Free UHT Milk in its product range and make it available on the local market, following its successful launch by Candia franchises in other countries.

“This rising demand has been channeled to us through our field staff, distribution channel and customers calls,” he said. “As the demand grows and gains momentum, we can predict the future

need for a whole range of lactose-free products, such as cheese, labneh, yogurt and ice cream.”

Going forward, competition is expected to rise from the non-dairy segment, as customers continue to explore plantbased alternatives in increasing numbers.

Plant-based foods tend to contain unsaturated (good) fats and are generally low in saturated (bad) ones. wThey are also high in fiber and contain high amounts of vitamins and minerals.

Ahmad Morad, brand manager at Kuwait Proteins Co, whose portfolio includes Belgian manufacturer AlPro, believes interest in plant-based products is rising on the back of government campaigns addressing so-called ‘lifestyle diseases’, such as diabetes and obesity, and a consumer base that likes to keep up with new trends.

NEW MILK ON THE MARKET

Ripple A pea-based ‘milk’, dairy-free and fortified with proteins.

Available in four flavors: original, original unsweetened, vanilla and chocolate. ripplefoods.com

“We are working to raise awareness among consumers about the health benefits of soya milk, especially for children with health problems and people with lifestyle diseases,” he said.

Kuwait Proteins Co. began importing AlPro’s alternatives to milk in 2014 and supplies both the hospitality sector and retail outlets in Kuwait. While soya milk is the best-known variety, other options are also proving popular on the international market, including AlPro’s coconut milk, which Morad said has just been launched locally.

Animal-free milk High in protein, lactose-free, hormone, antibiotic, steroid and cholesterol-free. perfectdayfoods.com

In a key development, Kuwait Proteins Co. recently began supplying Starbucks outlets with AlPro’s soya milk. The move is proving to be highly successful. “Our customer base is definitely growing,” Morad said. “We are tackling the preconceptions and our efforts are producing results. There is plenty of room to grow. But growth will come from education and awareness.”

Grassmilk yogurt A creamy, luscious and delicious snack made exclusively from grass-fed Grassmilk.

Available in four varieties: strawberry, wild blueberry, plain and vanilla. organicvalley.coop

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nce & re

sseini

Media Services & Exhibitions

Hu

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Conferences & Event

PRODUCT ZONE

CHOCOMANIA

SWEET & SAVORY SENSATIONS Using a blend of fine chocolate and the smooth notes of salted caramel, the perfect sweet and savory balance complements a crisp finish

MILKY RASPBERRY MILK CHOCOLATE RASPBERRY MOUSSE Ingredients • 75 g whole milk • 175 g raspberry puree Cap’fruit • 40 g glucose syrup DE 60 • 250 g milk chocolate Callebaut® 823NV • 250 g cocoa butter Callebaut® • 35 g gelatine mass • 400 g cream EVEN 35.2% Preparation • Bring to the boil.

• Pour over the chocolate and cocoa butter mixture.

Emulsify.

• Add to the above mixture.

• Whip and add to the above mixture at 35°C. ARRIBA CRÉMEUX Ingredients • 321 g cream EVEN 35.2% • 214 g whole milk • 48 g glucose syrup DE 40 • 81 g egg yolks • 304 g milk chocolate Callebaut® Single Origin Arriba • 32 g gelatine mass • Pour into silicon moulds PAVONI and freeze.

Preparation • Bring to the boil.

• Heat up the syrup in the microwave. Add the egg yolks to the syrup and emulsify.

• Pour the cream over the egg yolk mixture, mix and bring back to the boil.

• Pour the above mixture over the chocolate.

• Mix in the softened gelatine mass and emulsify.

SOFT ALMOND BISCUIT Ingredients • 181 g egg yolk • 84 g caster sugar • 213 g egg white • 84 g sugar

• 252 g marzipan 50% • 97 g fresh butter • 90 g Cocoa butter (melted) • Spread out onto a baking tray covered with PAVONI Silicone Mat and bake for 10 minutes in a convection oven at 200°C. Preparation • Whisk together.

• Whisk together.

• Mix in the cutter. Loosen with a bit of the egg white mixture.

• Then fold in the egg yolk mixture. And fold in the rest of the egg white mixture.

• Add to the above mixture.

RED FRUIT GLAZING Ingredients • 430 g sweetened condensed milk • 301 g gelatine mass • 645 g white chocolate Callebaut® W2NV • 323 g raspberry puree Cap’fruit • 645 g sugar • 645 g glucose syrup DE 40 • Let rest for 24 hours before using. Apply at 30°C. Preparation • Mix together.

• Heat up to 104°C and add to the mixture above. Let everything melt and emulsify with a mixer.

ASSEMBLY Ingredients • Salted Caramel Crispearls™ Preparation Scoop the milk chocolate raspberry mousse into a the mould, insert the Arriba crémeux and close it off with the almond biscuit.

Freeze and cover with red fruit glazing. Place a round chocolate plaquette on top, and finish off with Salted Caramel Crispearls™ and fresh raspberries.

EMF Middle East t. +961 9 938732 | info@emf-me.com | www.emf-me.com

122

(Created by Alexandre Bourdeaux - Callebaut Chef - CHOCOLATE ACADEMY™ centre Belgium)

HOSPITALITY NEWS ME | FEB-MAR 2017

HOT CHOCOLATE WITH CRISPY CARAMEL (Created by Alexandre Bourdeaux - Callebaut Chef CHOCOLATE ACADEMY™ centre Belgium) HOT CHOCOLATE

• 74 g sugar

Ingredients • 571 g whole milk • 190 g cream EVEN 35.2% • 48 g sugar • 190 g dark chocolate Callebaut® 70-30-38NV

Preparation • Grate the vanilla and mix with other ingredients.

• Whisk until stiff.

Preparation Mix together and heat up.

(You can leave the mixture to ripen overnight - it will be even more flavorsome the next day.)

Ingredients • Salted Caramel Crispearls™ • Callebaut® Carmel Toppings

VANILLA CHANTILLY Ingredients • 1 vanilla pod Authentic Products • 925 g cream EVEN 35.2%

FINISHING AND SERVING

Preparation • Pour the hot chocolate in a glass and top off with the Chantilly. Top with some Callebaut® Caramel Topping and add a pinch of fleur de sel. Decorate with Salted Caramel Crispearls™.

CREATING A NEW CONCEPT OR LAUNCHING A FRANCHISE? Email us on info@wondereight.ae

18 62 Years

Successful Franchises

We are a global branding and interactive agency founded in 1999 with more than 98 restaurant concepts created and 62 successful franchises in our portfolio on a regional and international scope.

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Restaurant Concepts Created

WE WERE THERE

OUT AND ABOUT 14 to 19 Nov On the occasion of the Gourmet Week in Lebanon, Indigo on the Roof at Le Gray Hotel welcomed Michelin-starred Chef Bruno Sohn for a week of Alsatian gastronomy.

2 Dec

1 Dec

Al Habtoor City celebrated the festive season like never before, offering a spectrum of different experiences to enjoy with family and friends across The St. Regis Dubai, W Dubai – Al Habtoor City and The Westin Dubai, Al Habtoor City.

In line with Whisky Live Beirut, the world’s premier event gathering curious whisky aficionados and seasoned connoisseurs, Kempinski Summerland Hotel and Resort organized a single malt masterclass, hosted by Neil Ridley, one of UK’s most recognized spirits writers, presenters and commentators.

This event took place at the 1897 Bar, boasting one of the largest and leading single malt Scotch selection.

1 Dec to 15 Jan 17 Nov

DIVVY opened its fourth outlet in the heart of ABC Achrafieh in Beirut. Over 200 guests joined the convivial celebrations, filled with lovely drinks, delicious food and amazing tunes by local band, JLP.

26 Nov

Maxx music bar in Dubai presented the Maxx flairtending challenge season 1.

8 Dec

Ladurée Villa Zein celebrated its first year anniversary in Lebanon and the launch of the festive season. VIP guests, media figures, bloggers and social influencers attended this glamorous event and discovered the tasty new menu of Ladurée and its colorful desserts and variety of Christmas yule logs.

Carwan Gallery teamed up with Atibaia in a new collaboration commissioning Lebanese studio 200 Grs. to reinvent Atibaia’s latest vintage. The collection of unique wooden French oak sculptures explores the functionality of the wine bottle.

15 Jan

1 Dec

Shogun Gourmet by the Shogun Group opens its doors at Le Bar de Taillevent in Beirut with a special Armagnac and sushi pairing event. Marc Darroze from the Bas Armagnacs region gave an interesting masterclass at the academy of Taillevent, which was followed by an exquisite dinner prepared by Imad Saade, the chef of Shogun Gourmet.

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14-15 Dec

The Malt Gallery, the first boutique of its kind dedicated to malts, spirits, wines and craft beers in Lebanon, celebrated its second anniversary. A two-day event was held on the occasion, with a special collaboration with renowned designer and architect, Nada Debs and culinary sensation Rouba Khalil.

Jumeirah Messilah Beach Hotel & Spa, Kuwait’s idyllic resort, hosted a number of dignitaries at the prestigious Chaîne des Rôtisseurs dinner, including the Ambassadors of Australia, Brazil, Germany, Italy, Mexico, Romania and South Korea. Guests of honor included Arlette Mabardi from Lebanon and Mohamed Hammam from Turkey.

25-27 April 2017 Madinat Jumeirah, Dubai

arabianconference.com

Catalysts of Change Over 80 speakers already confirmed!

Discover which critical industry topics will be tackled by a powerhouse line-up.

Visit arabianconference.com today!

Chris Nasetta President and CEO Hilton Worldwide

O rga n ised by

SĂŠbastien Bazin Chairman and CEO AccorHotels

Pl ati n u m sP O n sO rs

Olivier Harnisch Chief Executive Officer Emaar Hospitality Group LLC

READ MORE ONLINE HOSPITALITYNEWSMAG.COM

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