rettelswenHospitality Management & Consultancy

Barcelona's Middle East ConnectionIn light of the launch of theMediterranean Hotel and RestaurantAssociation (MHRA) in Barcelona,Chadi Chidiac, managing partner ofPROTOCOL hospitality managementconsultancy, takes on the city.The Barcelona metropolitan areacomprises over 66 percent of the peoplein one of the richest regions in Europe –Catalonia; with a GDP per capitaamounting to EUR 28,400 (approx.USD 32,000), surpassing the EUaverage by 165 percentage points.Barcelona, as an internationallyrenowned tourist destination, hasnumerous recreational areas, one of thebest beaches in the world north andsouth of Barcelona, mild and warmclimate, historical monuments, includingeight UNESCO World Heritage Sites, many good-quality hotels, and

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Issue No 10

January 2017

Eye on BarcelonaBy Chadi Chidiac from Protocol

a highly developed tourist infrastructure. According to a market survey and feasibilitystudy conducted by PROTOCOL in partnership with Trutmann consulting firm, aleader in the hospitality consulting business based in Catalonia, Barcelona boastsan eclectic group of high-end restaurants – many of them Michelinstarred with amajority of market supply serving local cuisine, notching around 28 percent of thetotal 6,859 concepts and around 20 percent in terms of seating supply, yieldingaround 164,000 seats out of the 810,000 seats currently available in the market.

Daring investments and trends Traditional Catalanfood tends to be earthy rustic fare, but thanks to aculinary revolution in recent years, modern Catalancuisine is considered some of the best in the world,with chefs like Ferran Adria blazing a trail, a three-Michelin star chef running elBulli restaurant describedby food critics as "the most imaginative generator ofhaute cuisine on the planet." The restaurant was alsoassociated with molecular gastronomy. The restauranthad a limited season: the 2010 season, for example,ran from June 15 to December 20. Bookings for thenext year were taken on a single day after the closingof the current season. It accommodated only 8,000diners a season, but received more than two million

requests. The average cost of a meal was EUR 250 (USD 283) while the restaurantitself operated at a loss since 2000, with operating profit coming from elBulli-relatedbooks and lectures by Adrià bearing in mind that as of April 2008, the restaurantemployed 42 fine chefs. The restaurant closed on July 30, 2011 and was reopenedas a creativity center in 2014. In addition to the legendary elBulli, Ferran Adriàannounced two Barcelona projects in 2010 — the tapas bar Tickets (1 Michelinstar since November 2013) and the cocktail-focused 41° Experience (1 Michelinstar since November 2013) — PROTOCOL spoke to the younger Adrià, Albert, asuperstar chef as well, who loves a challenge and quickly branched out, turningone section of the city into what he called a "culinary amusement park." In thefollowing years, the ambitious project, which the Adriàs have dubbed the 5.0Project, the purest version of Albert Adrià's vision, 5.0 consists of five restaurants,five completely new culinary concepts, five partners, and one creative chef with oneclear objective: to develop the first culinary amusement park in the world, locatedin the center of Barcelona. Along with the three owners of the legendary marisqueria(seafood restaurant) Rías de Galicia — Juan Carlos, Borja and Pedro Iglesias —

this amusement park strategy added additional restaurantconcepts in the form of Pakta, Hoja Santa, Niño Viejo, andBodega 1900. Together, these five concepts will form a map ofthe ‘must-visit’ places in Barcelona for food lovers and elBullinostalgics. Also, by the beginning of next year, Adrià will beready to go on to some very special and exclusive internationalprojects: the Dominican Republic and Ibiza are on his agendafor the next few years. Still to come is a revamp of the original41° Experience: Enigma, an immersive, dreamlike maze thatAlbert Adrià promises will "reinvent the way we go torestaurants…Inside Enigma, people sitting down at 41° will be

able to enjoy a really special tasting menu, in which they will feel closer than everto the already–closed elBulli.” There will be 19 staff members for 16 guests at EUR200 (USD 226) each - an once in a lifetime experience.

Scaling and calibration To scale market supply,PROTOCOL categorized Barcelona’s restaurants into fivemain categories according to a number of specs, one ofthem being the most objective and scientifically-provenscheme; the GCA ratio. To calibrate supply, price tagswere weighted based on menu prices and average checkper guest showed that 40 percent of the restaurants havean average ticket lower than EUR 10 (USD 11) followedby medium-low establishments with 22 percent. At thirdplace come medium scaled outlets with 19 percent,

followed by medium high and high with 15 percent and 4 percent respectively.Revealed figures show Catalan’s market is a tourist-friendly destination, especiallyfor inbound visitors coming from other EU member states. According to the samePROTOCOL study, an average expenditure per trip was around EUR 587 (USD664), bearing in that the average guest-night for EU inbound tourism is sevennights, the average per-night-expenditure is around EUR 82 (USD 93), leavinglittle chance for restaurants with high price tags to receive visitors. Consideringthat this EUR 82 is not disposable, since the amount is distributed betweendifferent activities such as transportation, souvenirs, site entrance fees, etc. itwould leave around 25 to 35 percent share of disposable Euros to be spent inF&B outlets. Lebanese stars Due to Barcelona's large expat culture and incrediblydiverse nature, when it comes to choosing a restaurant there is always somethingfor all 'gustos'. Middle Eastern and Lebanese food are no exception.

Barcelona's Middle Eastern and Lebaneserestaurants are known for serving qualityfood at reasonable prices. You may knowthat at one stage, Spain was ruled by theArabs for more than 700 years. Theydefinitely left their mark on the culture andarchitecture of Spain, as can be seenmostly in the southern parts of the countryin cities like Granada and Cordoba.Another great legacy that the Arabs leftbehind was their influence on cuisine. Forexample, one of the most common tapasin Spain is called Pinchos Morunos (Moorish bites), which are essentially spicypieces of meat on a skewer – very similar to shish kebab. Barcelona definitelyhas a lot to offer in terms of authentic Middle Eastern cuisine, with 41 restaurantconcepts offering delicious meals from Syria, Palestine and Lebanon. Abou Khalilhas been around since 1983 and is renowned for its authentic Lebanese dishes.Abou Khalil is ideal for those looking for a warm and homey atmosphere and agenuine taste of Lebanese food. Al-Waha serves delicious food, with anelaborate presentation. This is a great option for vegetarians as well, as theirdishes are diverse with plenty of options for non-meat lovers. Not far from Al-Waha, on Gran de Gracia, is Habibi. Situated in a cafe like setting, Habibi hasan incredibly large menu including, fresh meat shawarma, baba ghanouj andchar-grilled chicken. Ugarit is probably the most popular option for Lebanesefood in Barcelona, although some experts might argue that their menu isLebanese and Syrian. They have seven outlets across the city. Ugarit offers awide variety of dishes for both meat lovers and vegetarians. Their hummus isalways freshly prepared, as is the falafel and salad. If you enjoy chicken, try theshish tawuk, served with a red pepper or hummus paste. Volubilis is a mix ofMorrocan and Lebanese cuisine, located in Eixample district. Their specialtiesare tajines, couscous, harira soup, pasteleta (a crust cake with chicken, onion,eggs and almonds), salads, kebabs, shawarmas and moussaka. Equinox isanother Lebanese restaurant located in the heart of Barcelona. It is not a falafel,kebab and fast-food restaurant; here you can have a magnificent Lebanese mealserved on a plate - one of the best Lebanese restaurants in the city. Consensus Inbrief, the high-end gastronomy formula doesn't work at present, at least inBarcelona. For lunch, people feel guilty if they spend three hours or more eatingin a restaurant. However they feel much more comfortable paying the sameamount of money in a more casual restaurant in which the menu is part of thefun.There are many formulas that can work, but you have to have a clear idea ofwhat you want and you can offer. If you want to offer a tasting menu which wasthe trend in Barcelona for more than 10 years now, you have to do it really wellbecause it is not only about the money, you are asking your guests to spend along time in your restaurant. You are forced to make it an unforgettableexperience. You need a great culinary background to make your proposal worthit. The consensus is for operators to try to offer good and fast reasonably pricedcuisine and an accessible average check, to capture the tourist and theprofessional Catalan, who always seeks the best value, in order to spend wisely.

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Shares in Comptoir Group, the Middle Eastern restaurant chain, started trading on Tuesday, raising £8m throughits flotation on London’s Alternative Investment Market. The group operates 11 casual-dining restaurants under theComptoir Libanais brand, primarily in London, and generates franchise revenue from operations across the UK.Following the announcement of its intention to list on the small-cap stock exchange earlier this month, some £16mof proceeds were raised — half of which the company said will be used to expand the Comptoir Libanais franchise.The remainder was offered to shareholders. A total of 96m ordinary shares in the business were issued, giving amarket capitalization of £48m, at £50 per share. In addition to its main chain, the Comptoir Group owns twosmaller Lebanese and Eastern Mediterranean outlets under the Shawa brand, plus two high-end stand-alonerestaurants Kenza and Levant in central London. Recipe books, traditional crockery and Arabian condiments willsoon be available on their branded online Souk, inspired by Middle Eastern marketplaces.Texas Chicken, the international brand of quick-service restaurant chain Church’s Chicken, is expanding its presencein the Middle East. A new agreement finalized with experienced restaurant franchise partner, The Olayan Group,a diversified multinational enterprise, will lead to the opening of 63 new Texas Chicken restaurants over the nextseveral years in the Kingdom of Saudi Arabia, The United Arab Emirates, Qatar, Egypt, and Oman. The new TexasChicken locations will further expand upon existing market presence.Denny’s, the ubiquitous diner chain headquartered in South Carolina, said this week that it would open 30 newrestaurants in nine Middle Eastern countries in the next decade. Jamba Juice, a Californian healthy shake place,also said this week that it was making an entry into the Middle East through a franchise agreement with LandmarkGroup, a Dubai-based conglomerate. Landmark plans to open about 80 Jamba Juice locations in the region overthe next decade, starting with the U.A.E. and then taking on Saudi Arabia, Qatar, Kuwait, Bahrain and Oman. Thechain is trying in part to capitalize on growing health consciousness in a region already flooded with fast-foodrestaurants and plagued by some of the world’s highest diabetes rates.Americana Group has reached a significant milestone with the opening of its 300th Hardee’s restaurant in theMiddle East. The new Hardee’s location was opened on April 21, 2015, in Yanbu Al-Sinaiyah, Saudi Arabia. Thenew Hardee’s location is the 100th in the Kingdom of Saudi Arabia. Americana Group opened the Middle East’sfirst Hardee’s restaurant in Kuwait in June 1980. Fostering a successful 35-year relationship, CKE and AmericanaGroup anticipate continued growth in the Middle East.Twenty-Two years ago, In December 20, 1994, Americana Group opened the First KFC running by HearingImpaired Staff was opened in Egypt.Hilton Worldwide third quarter 2016 results highlights include • EPS for the third quarter was $0.19 and EPS,adjusted for special items, was $0.23; net income for the third quarter was $192 million • Adjusted EBITDA for thethird quarter was $765 million and Adjusted EBITDA margin was 41.6 percent • System-wide comparable RevPARincreased 1.3 percent for the third quarter on a currency neutral basis from the same period in 2015 • Managementand franchise fees for the third quarter increased 7 percent from the same period in 2015 to $470 million •Approved 27,000 new rooms for development during the third quarter, bringing year-to-date approvals to 77,000rooms • Grew development pipeline 15 percent from 2015 to 1,898 hotels, consisting of 300,000 rooms • Netunit growth was 13,100 rooms in the third quarter, representing a 7 percent growth in managed and franchisedrooms from 2015 • Opportunistically entered the capital markets to enhance Hilton's balance sheet by issuing $1billion aggregate principal amount of 4.25% senior notes due 2024 and amending and extending $3,225 millionof the Term Loans; repaid $991 million of long-term debt • On track to complete the spin-off transactions of ParkHotels & Resorts and Hilton Grand Vacations around year end • Hilton plans to host an investor day on December8, 2016 at the Conrad New York.Shake Shack Inc. reported its financial results for the third quarter ended September 28, 2016, a period that included13 weeks. Financial Highlights for the Third Quarter 2016 include Total revenue increased 40.0% to $74.6 millionShack sales increased 40.2% to $71.9 million Same-Shack sales increased 2.9% Operating income increased17.5% to $9.2 million Shack-level operating profit*, a non-GAAP measure, increased 32.6% to $20.7 million, or28.8% of Shack sales Adjusted EBITDA*, a non-GAAP measure, increased 26.3% to $15.2 million Net incomeattributable to Shake Shack Inc. was $3.8 million, or $0.15 per diluted share Adjusted pro forma net income, anon-GAAP measure, increased 25.1% to $5.5 million, or $0.15 per fully exchanged and diluted share Ten system-wide Shack openings, including seven domestic company-operated Shacks and three net new licensed Shacks.

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Latest Projects

Lebanon

PROTOCOL executed a feasibility study for a Café-Bistro in Beirut – PROTOCOL achieved a market study in addition tosite analysis and potential location(s). Barcelona

PROTOCOL undertook a feasibility study for an oriental QSR in Barcelona – Spain – the scope pointed at the possibilityand potential for a new Middle-Eastern QSR to prosper. London

PROTOCOL elaborated a business plan for a new restaurant planning to open early 2018 in London – PROTOCOLwent through a pre-planning market survey before getting through a scrutinized financial projection with start-up capitaland budgeting forecast – The new concept will be costing around £1m and £600 thousand without key money.Dubai

PROTOCOL was assigned to elaborate a food-truck concept including branding and truck design – A module project tobe tailored per se as targeted market and selected location. Jeddah

PROTOCOL was assigned to execute and develop a cupcake factory in Jeddah – A full-fledged concept that will beoperating as a retail cupcake shop with the possibility to cater off-premises for special occasions and events. Abu-Dhabi

PROTOCOL was assigned to diagnose the operations of a mid-size catering business in Abu Dhabi – PROTOCOL presented a full report with operational diagnosis and solutions.Beirut

PROTOCOL undertook a business plan for a sweet parlor in Beirut – The concept consists of a sweet display shop in addition to a full-fledged dessert menu offering a mid/low pricebracket. Paris

PROTOCOL was assigned to execute and develop an oriental delicacy shop in Paris - The outlet will be serving the oriental staples with take away and delivery department to beoperational at a later stage.

Hospitality Management & Consultancy

Gedco Center - 3rd Floor - Hayek Roundabout Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon

E-mail: protocol@protocollb.com

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7 Minutes with Mr. Mohamed Al MahmidHead of Investment Promotions

STAR GUEST INTERVIEW

Hospitality Management & Consultancy

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“ “

Mohamed Al Mahmeed joined Qatar Tourism Authority in 2015 to lead the organisation’s newly-formed TourismInvestment Promotion Section. In his role, he supports Qatar’s tourism industry in reaching its potential throughraising awareness among private and public, local and international stakeholders on investment opportunitiesin Qatar’s tourism sector. He also facilitates the establishment of tourism business through building relationshipsbetween investors and relevant authorities.Al Mahmeed’s support for tourism investment also extends to QBIC Tourism, part of Qatar Business IncubationCentre, where he provides guidance to local entrepreneurs as they introduce creative business ideas across thepriority areas set out in QNTSS.Al Mahmeed holds a BSc. in Business Administration from Carnegie Mellon University Qatar.

Q Can you describe the hospitality and tourism business evolution in Qatar during the last five years?

mohamed-al-mahameed

“Qatar is the fastest growingdestination within the region interms of visitor arrivals”

A Qatar is the fastest growing destination within the region in terms of visitor arrivals, averaging 11.5 percentgrowth over the past five years. According to the UNWTO, Qatar is the only country in the Middle East to witnessconsistent growth in arrivals for a decade, from 2005- 2015. The country had 20 new hotels opening in 2015alone. In 2016, a new grading and classification system for the hospitality sector was rolled out, aimed at raisingthe standards of hotels. The Qatari tourism industry ranked second most competitive in the region, and 43rd out of141 countries by the World Economic Forum, Travel & Tourism Competitiveness Index, 2015.

Q Where do investment opportunities reside?

A Our strategy focuses on building on Qatar’s offerings in four priority areas: Sports and recreation tourism, cultureand heritage, urban and family entertainment, and business events. Qatar presents a variety of investment opportunitiesin tourism products and services, leisure, health and wellness, culture and heritage, gastronomy, and MICE, amongothers. We are also working with private sector partners to diversify the hospitality industry, and to develop attractiveaccommodation. We are encouraging the development of more three- and four-star hotels, the launch of experientialhotels, and investment in resorts, eco-lodges, boutique hotels, and other new hospitality offerings.

Q What are the benefits and the advantages of investing in Qatar?

A Investors that set up companies in Qatar now benefit from a rare competitive edge, being among the first to start upin a fast growing market with still only a few players. As one of the safest and most stable countries in the world,Qatar offers the ideal investment environment for foreign investors. Much of the groundwork is already laid for theindustry, as our government has already invested nearly USD 200 billion in infrastructure supporting tourism, throughprojects including: Hamad International Airport, Doha Metro System, Msheireb Downtown Doha, National Museumof Qatar, and the New Hamad Port.

“ ““We are also working withprivate sector partners todiversify the hospitality industry,and to develop attractiveaccommodation.”

Q What are you offering as facilitation to investors?

A Qatar identified tourism as a priority sector. The country’s tourism sector is a nascent one, and many firsts are ahead,and efforts are intensifying to turn challenges into opportunities. The government is stepping up efforts to attract foreigninvestments. QTA established a Tourism Investment Promotion Unit to attract investors and facilitate building relationshipsbetween investors, local and international talent, as well as government authorities. We have also released an investors’guide, including all the necessary details about the legal procedures, financing, and government processes. A new e-licensing system is underway. It will make applying for or renewing tourism licenses more efficient and transparent. Thepassing of laws and policies are being accelerated to incentivize foreign investment and ownership of businesses. Weare also working to carve out new avenues for local startups and entrepreneurs, as their participation in developing thesector is key. We partnered with Qatar Development Bank and Qatar Business Incubation Centre (QBIC) to create QBICTourism, a specialized incubator that provides the ideal business environment for entrepreneurs looking to enhance the

Qatar tourist experience. Launched in January 2016, QBIC Tourism has incubated 11 start-ups.

“ “

“A new e-licensing systemis underway. It will makeapplying for or renewingtourism licenses moreefficient and transparent.”

Q What are your future plans?

A Recent projections indicate that Qatar is on track to meet 2030 tourism targets, and may be able to exceedthem, with the right investments, both local and foreign. Our strategy for the coming years places great emphasison promoting investment opportunities in Qatar. We are also working on diversifying our calendar of festivalsand events, and look forward to introducing new festivals in the coming year.

“Investors that set up companies inQatar now benefit from a rarecompetitive edge, being amongthe first to start up in a fastgrowing market with still only afew players.”

“ “

“Our strategy for the coming yearsplaces great emphasis onpromoting investment opportunitiesin Qatar.”

““

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Hospitality Management & Consultancy

Gedco Center - 3rd Floor - Hayek Roundabout Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon

E-mail: protocol@protocollb.com

Start-up your Industrial Catering Business

PROTOCOL will be holding the Catering Business Start-up seminar in business center Abu-Dhabi. An extremely valuable musthave program targeting owners and field professionals covering all aspects of the planning and implementation process forindustrial catering operations.

For all information about our services, projects and all upcoming seminars visit protocollb.com

Management Solutions

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 isvalued at USD 30 billion and growing at a rate of 27 percent annually, while around 23 percent of theworld’s franchises are food-related. In 2016, the portfolios of top food-franchise companies were focusedon specific concepts such as Lebanese, café-bistros and Italian, while new trends were introduced to thesupply base, like food trucks and street food.

Alshaya, another successful group franchises some of the world's best known brands, from the MiddleEast and North Africa to Russia, Turkey and Europe. Alshaya operates across a uniquely wide range ofsectors, 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 deL’Etoile; Sprinkles Cupcakes; Al Forno; and Café Coco. The group’s multibrand, multi-market franchisefollows an aggressive expansion plan, while bringing leading food concepts to local malls and highstreets, delivering a truly sophisticated experience.

Azadea Group is a premier lifestyle retail company, founded in Lebanon in 1978, owning and operating more than 50 leadinginternational 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 cangrow much faster as a franchise than if you’re operating your own brand. With a franchise, you’reimplementing already-successful business models. Why bother establishing a vertically integrated businessmodel when you can get involved at the end of the supply chain 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 1977 in Lebanon, while the restaurants portfolioincludes: 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 Cornerat Beirut Souks.

A RECENT STUDY CONDUCTED BYPROTOCOL THAT BRIEFED THEMARKET ON THE LEBANESEFRANCHISE SECTOR REVEALED THEFOLLOWING DATA:

• The country’s franchises are worthUSD 1.5 billion per year and 4 percentof GDP • The franchise industry employs99,000 workers • There are 744 franchise companiesin operation, accounting for 6 percentof all national companies • 70 franchise members are under theLFA, of which 42 percent are restaurantsand cafes • There have been 79 deals madeversus 21 terminated • 14 lead or potential franchisees tapLebanese franchisors per year, with 2 to3 percent of negotiations closed • USD 55,000 is the upfront, initialfranchise fees for local franchiseesversus USD 184,000 for those abroad • Marketing fees are 1.9 percent ofsales for local franchises versus 2.1percent for those abroad • Royalties are 4.9 percent for localfranchises versus 5.4 percent for thoseabroad • Average fees charged byinternational franchisors are: franchisefees - USD 157,000; royalty fees - 9.2percent; marketing fees - 4 percent • Franchise deals made by Lebanesefranchisors by geographical locationare divided: KSA - 24 percent; UAE - 19percent; Kuwait - 14 percent; Qatar - 10percent; Africa - 11 percent; Europe - 6percent; and US - 6 percent • 1,100 franchise concepts operatelocally, of which 450 are Lebanese

Market Studies & ResearchFranchising Middle East

MEGAPROJECTS

Summerland Kempinski Hotel & Resort

This project involves the reconstruction of the former Summerland Hotel in Beirut coveringa total built area of 65,000 sqm. Managed by the international chain Kempinski Hotels,the resort will consist of a five-star hotel, restaurants and retail stores, in addition to ahealth club, marina and other outdoor facilities.Investment Size: USD 155.5 millionType of Investment: Foreign Affiliate, Nationality of Investor: Lebanese & Saudi ArabianJobs Created: 221Approval Date: 2010Operation Date: 2016, Type of Incentive Scheme from IDAL: Package Deal Contract (PDC)

FRANCHISE LEADERS Founded in Kuwait in 1964, the group is not only the largest operator of restaurant chains in the MENAregion, 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. Marzouk Nasser Al-Kharafi Chairman and Managing DirectorAmericana Garden; LongHorn; Costa Coffee; Krispy Kreme; and, most recently, The Counter. The groupremains bullish, with more deals and openings underway. “We are delighted to welcome Red Lobster, OliveGarden 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 grownover the past decade, and we expect that growth to continue in the future.

FRANCHISING LEBANON When Charles Arbid, President of the Lebanese Franchise Association, was askedwhy the LFA was so heavily skewed towards the F&B sector, and whether there was a possibility of it becomingmore diversified, 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 biggestpotential for franchising.”