Franchising Success in MENA

Retales Episode 20 | Franchising Success in MENA

In this episode, Marwan Moukarzel, a seasoned franchise operator with over 20 years of experience, shares his insights on the intricacies of franchising in the MENA region. He emphasizes the importance of partnerships, integrity, and a long-term perspective in building a successful franchise business. Marwan believes that the foundation of any partnership lies in mutual respect and trust, stating that the best way to foster long-lasting relationships is to always prioritize the interests of partners.

Marwan’s journey in retail has focused on the franchising model. His strategy centers on identifying scalable brands that can thrive in the GCC and beyond, particularly in the retail and food and beverage sectors. He highlights the potential for growth in Saudi Arabia, noting that despite the presence of established brands, there remains ample room for innovation and expansion in experiential concepts. “I would say Saudi is the place to watch simply because amazing malls are now being built, and they will be delivered in the next few years… and the customer experience is evolving every single day.”

He also touches on the Middle Eastern consumer preference for offline shopping. “In the GCC, customers still shop offline,” he says. It’s “a way of living in the Middle East.”

As the conversation progresses, Marwan sheds light on the challenges of entering the MENA market today. He acknowledges that places like Dubai are becoming increasingly competitive. He stresses the need for retailers to adapt quickly to changing consumer expectations, particularly regarding speed to market: “The number of stores, in general, is difficult to grow beyond. So, you have to improve your densities and your customer experience, which we will reach.”

However, he sees great potential in Egypt, viewing it as an underdeveloped market ripe for growth: “I believe Egypt is the place to plan for growth in the next five years. It’s a huge market… I believe it’s still underdeveloped.” Marwan emphasizes the importance of offering value brands and catering to local consumers’ needs. He also discusses the pivotal role of operational efficiency.

Operational excellence is a core principle for Marwan, and he sees people as one of its pillars. “People will make the difference… once you have the right brands and capabilities, the people will make all the difference.” He is particularly enthusiastic about AI’s potential in retail, explaining how it can drastically enhance product development and supply chain efficiency. He believes that AI will revolutionize retail operations, enabling faster product development and improved customer experiences. He encourages retailers to embrace technology and innovation, warning that those who fail to adapt risk becoming obsolete.

“AI, I think, will make the whole difference today. Before, we used to talk about improved POS systems and all these things… Today, I think we should be looking at AI. How will the whole retail landscape change? Those who are unable to adopt this technology will be out of business in a few years.”

Discussing his philosophy, Marwan shares that he prioritizes simplicity and long-term relationships over quick wins. He believes in investing time and effort into partnerships, as these relationships are built on trust and mutual benefit. “My philosophy is to keep it simple.” He emphasizes that motivating people and building a positive company culture are crucial to success, noting, “For me, motivating people starts with working on the culture… a culture of inclusiveness, a culture of respect, a culture of caring… where people are treated fairly and where they can dream of growing, being promoted, and learning.”

Join the conversation and gain more insights into the world of franchising success, operational excellence, and building successful partnerships in the ever-evolving MENA market.