International Franchise Developments in the MENA Region

The food and beverage (F&B) franchise market in the GCC and MENA regions has seen rapid expansion over the last few years. This is largely driven by both international brands entering the market and regional brands expanding globally. Several key trends and investments reflect the region's evolving tastes, business potential, and its position as a hub for international and local franchise growth.

International Brands Entering the GCC

Major US and European F&B franchises have always expanded into the GCC to tap into the region's young, affluent population and booming foodservice sector. As early as 1976, Baskin Robbins was one the first American food brands to open in Dubai. More recently Peet's Coffee, a premium US coffee brand, has come to the UAE in partnership with Americana Group. In 2022, Peet's opened its first outlet in Dubai, with plans for further expansion across the UAE and the broader GCC. This fits with the rising demand for high-quality coffee experiences in the region.

Wendy's, under the management of Alghanim Industries from Kuwait, has also continued to grow in the Middle East. Wendy's is planning for 150 outlets in the region over the next decade. This growth strategy includes Saudi Arabia, Kuwait, and the UAE, as the brand adjusts its offering to align with local markest and cultures.

Cinnabon is another success story in the region. Fawaz Abdulaziz Alhokair & Co. acquired franchise rights to 10 F&B brands in Saudi Arabia, including Cinnabon, which is poised for further expansion across the Kingdom. This reflects the significant growth potential for quick-service restaurants (QSR) in Saudi Arabia..

Local Brands Expanding Internationally

Homegrown brands are also making a mark on the global stage. Cravia Group, based in the UAE, operates well-known franchises like Cinnabon, Five Guys, and Seattle's Best Coffee across the MENA region. With significant backing from private equity firms like Fajr Capital, Cravia is eyeing international expansion, leveraging its deep knowledge of regional consumer preferences to compete globally.

Homegrown GCC brands have successfully entered international markets. Just Falafel, founded in the UAE, is a standout example, having expanded to the UK and North America. The brand offers an innovative twist on traditional falafel, appealing to a global audience seeking healthy, plant-based fast food options.

Allo Beirut, an award-winning Lebanese street food concept, continues its rapid international expansion following its partnership with the Apparel Group. Originally conceptualized in 2018 by the Black Spoon Group, Allo Beirut is renowned for bringing the nostalgic flavors of Beirut’s street food culture to a laid-back, fun dining environment.

In the first half of 2025, Allo Beirut will be opening new locations in Last Exit DXB x AD (Dubai), Ajman, Jeddah (KSA), Bahrain, Uzbekistan, and France. The second half of 2025 will see further expansion with new outlets in Qatar, Oman, the UK, and Australia. Looking ahead, Kuwait is slated for 2026, with ongoing discussions for future locations in Malaysia, Egypt, and Algeria.

This international growth reflects the global appeal for authentic Lebanese cuisine, positioning Allo Beirut as a key player in the international dining scene.

Pickl, a popular burger chain from Dubai, has also seen rapid growth. Known for its fresh and high-quality ingredients, including vegetarian and vegan options, Pickl has expanded within the UAE and plans to grow internationally. The brand has focused on building a strong delivery infrastructure, understanding that convenience and technology are essential drivers of success in modern F&B.

Similarly, Amo Hamza, a Saudi-based seafood chain, has attracted significant investment from NBK Capital Partners, a leading private equity firm. Amo Hamza is now poised to expand its footprint beyond the GCC, offering traditional Saudi dining experiences on a global platform.

Key Trends Shaping F&B Franchising in the Region

1. Premium Coffee Culture: The rise of brands like Peet's Coffee underscores the growing demand for premium, artisanal coffee in the Middle East. This segment is expected to grow as younger, affluent consumers seek high-quality coffee experiences.
2. Quick-Service Restaurants (QSR): The QSR segment, including franchises like Wendy's and Cinnabon, remains a dominant force in the region's F&B landscape. This segment benefits from low capital investment and the ability to scale quickly.
3. Private Equity Investments: Private equity has played a crucial role in supporting the growth of both international and regional brands. Firms like Fajr Capital and Gulf Capital have strategically invested in the F&B sector, helping brands like Cravia and Amo Hamza expand.
4. Casual and Fine Dining: With increasing affluence, the demand for casual and fine dining experiences is also on the rise. Concepts that offer a blend of high-quality ingredients with casual formats are gaining traction, as seen with brands like Life with Cacao and Bluefin in Saudi Arabia.

Future Outlook

Looking ahead, the GCC F&B market is expected to continue its growth, driven by factors such as a young population, rising income levels, and increased tourism. Governments in Saudi Arabia and the UAE are also playing a key role in promoting economic diversification through their Vision 2030 plans, which include significant investments in the food and hospitality sectors.

The future of F&B franchising in the Middle East looks bright, with opportunities for both international brands looking to enter the market and regional players aiming for global expansion. Brands that focus on premium offerings, QSR efficiency, and innovative dining experiences will likely see the greatest success.