Franchise operations in the state of Qatar and across the Gulf are expected to soar in coming years, industry observers say.
Independent estimates say that over 1,000 franchise operations exist in the Gulf dealing mostly with consumer goods, food and retail items.
Qatar has seen a real spurt in retail food chains over the last three years bringing in greater sales and market penetration to Western outlets especially American and British fast food giants, an industry observer said.
Higher market penetration has led to a situation where the customer is now being wooed through competitive pricing. Popular Western commercial images across Doha are now more abundant than before, an industry observer said.
The most successful among franchises in the Gulf are retail food chains, car rentals and education products and services, says the Washington based International Franchise Association (IFA).
Sales across a multi-ethnic population have helped businessmen venture into these franchise operations, mostly retail foodstores, where existing ones are now competing to add more branches. In terms of per capita food sales, some outlets in Qatar have already outnumbered their compatriots in Western societies, another industry observer said.
Kentucky Fried Chicken, Pizza Hut, A & W, Burger King, McDonalds ... you name them they are all here, says a food industry specialist.
Food franchisers are perhaps the most enterprising in this segment having had a good slice of the market in the state of Qatar.
A young baby boomer generation is what we are targeting across the Gulf, an industry analyst associated with a major retail chain said.
At stake is a $ 200 bn consumer market in the six Gulf states, with Saudi Arabia remaining the favorite target market considering the profile of its consumer-base.
Many businessmen who have set up franchise ventures in Qatar have either studied in Western societies or gained experience through international travel.
Relaxed rules and permission for nationals to set up intra GCC ventures have also aided major family businesses in the region take up franchises across the six states. These are then sub-contracted to individual owners in different countries.
Economic reforms have also helped greater investor confidence, and in Qatar a new trademark law expected by the end of the year will give greater protection to franchisers.
While major franchise operations still remain in the hands of family businesses, individual entrepreneurs have now started cashing in on selling globally known images which they feel will fetch better business.
Wide media penetration through advertisements has also helped boost customer confidence. Profitable franchising operations in the Gulf are expected to grow rapidly, fuelled by local private initiative as those economies mature, says a recent survey in the Middle East.
The move helps both ways: local partners benefit through high-profile brands and quality, while the franchiser makes profits with each counter sale.