With soaring import costs and a persisting crisis, Lebanese entrepreneurs are showing remarkable entrepreneurial creativity by launching and franchising local brands.

Though franchising as a key model for international growth is well-established in Lebanon, the country’s challenges since the 2019 financial crisis have acted as a catalyst, with Beirut welcoming 32 to 34 new registered brands. This marks a turning point to a more productive and creative dynamic. Some call these brands “born out of crisis.”

Over the years, Lebanese brands have expanded beyond local borders, particularly those in the F&B sector, such as Em Sherif and Zaatar w Zeit, which have adopted the franchise model. According to Yahya Kassaa, President of the Lebanese Franchise Association (LFA), franchising has flourished in Lebanon since the early 2000s. 

“The ecosystem for franchising is very advanced in Lebanon. It was already well-developed, with many entrepreneurs adopting franchising to expand their concepts. Establishing the LFA in 2004–2005 brought greater structure to the sector, formalizing practices and creating a supportive environment for both franchisors and franchisees,” says Kassaa. Franchising accounts for 4.2% of Lebanon’s GDP, and around 1,100 franchisors and franchisees operate in the country.

The turbulent economic situation has undeniably posed challenges, particularly for franchisees who struggled with banking restrictions, making transferring royalties difficult. Yet, as Kassaa notes, Lebanon has always been “a shock absorber” that finds ways to adapt.

Many entrepreneurs began developing local alternatives to international brands. New local coffee chains, restaurants, and lifestyle concepts emerged at lower costs.  “What doesn’t kill you makes you stronger,” Kassaa says, adding that the crisis opened doors for fresh opportunities in many ways.

GLOBAL EXPANSION

Several Lebanese brands have successfully leveraged franchising to expand internationally. Addmind, the hospitality group behind some of Beirut’s most popular clubs and restaurants, shifted operations abroad after the Beirut port explosion in 2020, establishing itself in the UAE. Within a few years, it partnered with one of Dubai’s biggest investors, securing substantial funding for regional growth.

Founded in 2001, Addmind operates several restaurants and nightclubs, including the renowned Bar du Port in Dubai, Bahrain, Egypt, and Riyadh.

Similarly, Em Sherif, often hailed as the best Lebanese restaurant worldwide, partnered with a major investor in Dubai, allowing it to scale into global markets. 

While F&B dominates Lebanon’s franchising scene—48% of franchises are in this sector—other industries are steadily gaining ground. Retail, fashion, and luxury brands, such as Elie Saab, represent the second-largest segment, followed by healthcare, fitness, services, and fintech.

Kassaa emphasizes that Lebanon remains a “cluster for creation and innovation.” He points out that “Lebanese franchises operate in 66 countries worldwide,” with the GCC countries serving as the number one destination for expansion.

The Lebanese diaspora, which spans continents, often plays a critical role as both investor and consumer, creating ready-made markets for Lebanese franchises in cities like Dubai, Riyadh, London, Paris, and Toronto.

In addition to franchising, Lebanese brands are expanding abroad through distribution. Brands such as canned food Al-Wadi Al-Akhdar, Ksara wines, and Bassam Fattouh Cosmetics have chosen a more flexible distribution approach. Their products reach international markets via partner retailers or distributors.

For example, Bassam Fattouh Cosmetics entered a joint venture with the Fattal Group to expand across the Middle East, Gulf, and North Africa. It is on regional e-commerce platforms like Phreya and Galeries Lafayette in Doha.

A FRANCHISING PIONEER 

A pioneer of the franchising business model in Lebanon is Anthony Maalouf’s Casper & Gambini’s, a restaurant-café, which he co-founded with his sister 25 years ago from a small delivery kitchen in Beirut. 

“We did the market research and saw the need for a high-end, proper delivery service for business lunches and breakfasts,” recalls Maalouf. “So, we started Casper & Gambini’s as a small delivery kitchen in Achrafieh.”

The young brand quickly gained momentum after being selected as a catering provider for employees working on the reconstruction of downtown Beirut. The early success prompted Maalouf and his sister to open their first official coffee house in 1998, introducing specialty coffee and an all-day café experience. By the end of 1999, the company had also launched its coffee roasting operation.

That same year, Casper & Gambini’s received its first international franchise request from a Lebanese expatriate in South Africa. By 2000, the brand expanded to Kuwait, followed by Saudi Arabia in 2001. Today, Casper & Gambini’s operates in 10 cities across the Middle East, with around 40 outlets.

“Franchising was an excellent solution for expansion,” Maalouf explains. “First, because it didn’t require us to provide the capital. Second, we depended on local partners who knew their markets, could pick the right locations, and help customize the menu offerings to fit local tastes.”

The franchising of Lebanese brands and products is a story of resilience, creativity, and global ambition. Despite challenges, Lebanese entrepreneurs continue to carry their culture abroad, turning Lebanon into a worldwide exporter of taste, style, and innovation.