From Taste to Scale: MENA’s F&B Space Navigates the Franchise Divide

MENA’s food service industry is simmering with innovation, appetite, and ambition. As tastes evolve and tech disrupts every touchpoint—from delivery apps to kitchen operations—operators are moving past old debates. The conversation is no longer simply about franchising versus going solo. Today, success lies in curating experiences, preserving brand soul, and scaling with precision.

In this feature, leaders behind some of the region’s most dynamic food brands unpack what it really takes to grow smart: balancing control with consistency, reach with relevance, and expansion with authenticity.

The control-versus-scale dilemma

There’s no one-size-fits-all approach, the choice between franchising and owning outlets hinges on brand maturity, product complexity, and market readiness. Successful franchising comes from an alignment of the franchisee with the brand’s values and vision. 

George Kunnappally, Managing Director of Nando’s UAE says, “Single unit franchising is preferred to scale but it’s extremely difficult to maintain standards and consistency. Territory franchising is what Nando’s has done in our region to give exclusive development rights to one person or entity. This gives the franchisee critical mass to invest in the business and its people while allowing the franchisor a reliable partner who is as passionate and committed as they are to build the brand.”

However, George also emphasizes that in a fast-moving market, product differentiation is tricky—so concepts that risk going stale should franchise quickly to capitalise on first-mover advantage. 

On the challenge of consistency, Eti Bhasin, Executive Director at Majestic Hotels and Dhaba Lane Restaurants explains, “Since Indian cuisine is best when freshly prepared, trying to maintain the same level of consistency and authenticity can often be compromised in a franchise model. We don’t find an advantage with franchising unless we hold at least 10+ outlets, with proper standardised procedures laid out.”

Moreover, some brands  prioritise experience over scale. One such brand is Daftar, a first-of-its-kind, homegrown concept in the affordable luxury dining space. Owing to its premium, experience driven categorisation, Founder, Isheeta Sharma believes, premature franchising could dilute the essence that sets it apart.

Isheeta stresses, “Every touchpoint—from the ambiance to the service style to the culinary story—is curated to reflect our vision. For now, managing it independently allows us to give it the attention it truly deserves. In a premium segment, less is more, and exclusivity plays a key role in maintaining value.”

Distribution without Dilution

In the food service industry, one of Middle East’s biggest wins is the openness to global concepts, albeit with a local twist. For Vish Narayan, Managing Partner of Pulsar Capital navigating regulatory frameworks, consistency, and consumer expectations that vary from city to city remain some of the key challenges. 

“If you can crack the localisation piece, it is an incredibly rewarding market,” says Vish. 

At the same time, brand leaders across the region have consistently pointed to Dubai’s business-friendly environment as a crucial catalyst for their growth strategies.

“Be it the clarity of the regulatory framework or the speed at which the approval process works at municipality, civil defense, police and other government bodies, I can confidently say there is no other city that comes even remotely close to Dubai with the ease of setting up, operating or scaling a restaurant business,” says George. 

Isheeta adds, “Dubai stands out for its pace, energy, and openness to new ideas. That’s worked in our favour. Being a homegrown brand, we tried to understand its people, and what they’re looking for, especially when it comes to dining that’s both elevated and convenient.”

“Expanding in Freezones like DMCC has been a game-changer—tax benefits, full ownership, and access to fast-growing hubs like JLT have helped us stay relevant, serve niche communities, and scale efficiently,” says Eti Bhasin. 

However, in the GCC, no two markets play by the same rules, demographics, dining habits, and rent dynamics vary widely. But one truth cuts across borders where location makes or breaks. Whether it’s a mall, high street, or airport, the first site sets the tone. And while Dubai might reward one playbook, Riyadh may demand another. 

Aggregators: A valuable tool, but not the whole answer

Adding another layer to the debate is the role of food aggregators that have become essential for reach, but not without caveats. For brands with low basket sizes, the economics might not succeed. As more platforms chase shareholder value, deep discounts and low commissions  often escape the menu.

In this case platform independence has been a key solution at Nando’s, “If one crashes, our orders flow through another, considering we dont have a direct competitor on the flame grilled peri peri chicken space in the UAE” says George, crediting it to the brand’s unique positioning and loyal customer base.

Eti from Dhaba Lane acknowledges the monopolistic grip of aggregators. “We don’t always profit, but we stay on these platforms to be accessible. It’s about presence, not margins.”

In a similar vein, Isheeta notes with a subtle distinction, “We value the visibility, but Daftar was built on connection. Aggregators are just one part of the story and the real magic happens in person.”

And for Vish, aggregator apps are now an inescapable part of the dining stack. He says, “Discovery, feedback, even pricing, they shape it all. But we’re careful not to let them define us. They are channels and not the brand itself.”

Between visibility and viability, reach and relevance, the aggregator performs a balancing act. However, its benefits must be leveraged strategically in both franchising and non franchising approach. 

The Quality Control Nuance

In recent times better training, integrated supply chains, and rising consumer standards has made it easier for brands to maintain quality across both franchised and non-franchised outlets, minimising the risk of quality compromise.

“Franchising is not the reason the product quality or the experience drops. It is when franchisors sign up with franchisees who do not share the same values,” says George, adding, “It is all about focusing on the product and the experience and taking the consumer very seriously. In my experience, most customers are very reasonable and appreciate a serious effort to get better and consistent.” 

Defining and implementing the metrics that shape an authentic brand experience is crucial to maintaining quality. Vish says, “Tight SOPs, great training, and a partner-first approach must be prioritised. Franchising doesn’t inherently dilute quality—it magnifies what you already have. If you start with clarity, consistency, and purpose, your identity remains intact, no matter how far you expand.”

For Daftar, which is still taking its sweet time assessing its next move, the push and pull between growing fast and growing right means balancing the allure of rapid expansion with the need for sustainable, quality-driven growth. 

Isheeta says, “It all comes down to execution. Without the right systems and partners, things can slip. But with strong controls, deep training, and a shared commitment to the brand, it’s absolutely possible to scale without losing soul. That’s why we’re taking our time.”

For Eti, this sentiment about balancing growth with authenticity rings especially true in the Indian restaurant space. “With Indian restaurants, unless you’re not limiting your food menu or creating mini food trucks or dark kitchen concepts, it’s futile to give away your concept to a franchisor,” she says.  

The Road Ahead

As the regional F&B landscape matures, franchising still has its place but not without guardrails. Control and credibility are key indicators of success for George. He says, “Territory franchising works when franchisees are professionals. But unit franchising, especially in far-off markets with no locked-in sites remains a red flag,” he cautions, pointing to market dilution and internal competition as cautionary instances.

Observing an obvious shift underway Eti says, “We’re witnessing the rise of hybrid formats with part joint venture, part strategic partnership,” she says, citing models like Jaffer Bhai’s 24/7 outlet or The Coffee Club’s JV with Minor Group. The aim according to her is to scale fast, without losing grip.

Isheeta echoes that sentiment with her own brand philosophy. “The future favours thoughtful growth,” she says. For Daftar, that means preserving quality through selective partnerships and not handing over the reins for the sake of speed.

“It’s not just about expanding anymore but it’s about scaling smart,” agrees Vish. Hybrid models like equity partnerships and licensing allow for deeper alignment between operators and brand custodians. 

But expansion is just one part of the story. Equally important is the customer experience and on that, most agree that technology and marketing can support it, but they don’t replace what truly matters.

At Nando’s, George insists the real edge lies in mastering the senses. “Taste, touch, sight, smell. F&B brands have a four-senses advantage. If you get those right, your customers will never forget how you made them feel,” he says. Even tech adoption is led by customer demand or operational need like pay-at-table systems that cut time and paper.

At Dhaba Lane, Eti sees digital as a dynamic canvas with QR menus post-COVID, TikTok reels today. “We’ve gone from Facebook posts to trending reels,” she says. “It’s about being current, without losing our flavour.”

On the other hand, Isheeta keeps it grounded, saying “Tech and marketing matter but at the end of the day, the real experience comes from the details that our guests can taste, feel, and truly enjoy.”

For Vish, orchestration brings it all together. He says, “Technology enhances operational precision and personalisation, while marketing brings the story to life. The real magic happens when the two work together. Whether it’s digital loyalty programs, real-time feedback tools, or immersive brand campaigns—everything is in service of a consistent, delightful customer experience.”

In short, the road ahead isn’t about choosing between franchising or going solo, tech or touch. It’s about mixing the right ingredients for growth that’s not just wide, but deep, one that aligns operational scalability with brand soul, consumer relevance, and long-term market viability.