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Scaling a business? Six core indicators a brand should consider

Bringing brands to new markets through franchising requires a comprehensive approach that considers various aspects for success. Brandon Guthrie the general partner at Shatranj Capital Partners (SCP), a private equity fund with a novel approach in scaling F&B brands in the Middle East. SCP focuses on the profitable growth of not only multi-unit franchise F&B brands in MENA, but also home-grown brands that show promise.

“Shatranj Capital Partners has created an organisation that properly addresses each of the key drivers of success. SCP offers professional asset management in the form of sector-focused private equity, combined with unparalleled operational excellence and regional experience,” he says.

As to how an equity fund can assist aspiring franchisees, he says: “SCP understands the intricacies of the MENA region, the full life cycle of brand commercialisation, and is in possession of the international franchisor relationships required to bring otherwise inaccessible brands to the region.”

When it comes to assessing the potential for brand expansion through franchising, he emphasises that a multi-faceted evaluation is key. “Over the years, I’ve identified six core areas that serve as reliable indicators of a brand’s potential for successful scaling,” he explains. Guthrie highlights the key factors to consider in choosing a potential franchise partner.

Six core indicators to consider

Brand strength: The former Wendy’s head of finance for APMEA says that a brand with a track record of establishing an emotional connection beyond its home market demonstrates robust brand strength. “This connection must transcend the borders and resonate with consumers on a global scale.”

Guest experience: “The guest experience is paramount,” Guthrie says. “For a brand to succeed, its operational standards must be nothing short of exemplary and customer-centric. Franchisees should strive to replicate the same level of service and quality that the brand is known for.”

Economics: A brand’s success model needs to be adaptable to the region. Guthrie underlines the importance of understanding the economic landscape of the target market, as the economic dynamics can vary significantly from one region to another.

Local market Fit: Guthrie believes that a brand’s product must align with the preferences and expectations of local consumers. “Flexibility in adapting to local tastes and needs is essential for sustained success.”

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