1. rettelswen
Hospitality Management & Consultancy
Manama is the capital of Bahrain and one of the most industrialized
centers in the Middle East. This city highly urbanized while last year it
was designated the center of Arab culture. Manama is not only a good
place for business, especially oil companies, but it is also a good
tourist destination in the Middle East. As the sun sears the Arabian
landscape in the morning, Manama becomes a lively night culture full
of life, fun and excitement.
Manama has some of the best nightlife in the Middle East; Alcohol is
legal, making the city very attractive to those who cannot drink legally
in nearby countries such as Saudi Arabia that’s why Manama receives
thousands of visitors from neighbor countries every weekend. Manama
is also unique in that here, it is not uncommon for men and women to
intermingle. Manama serves a cosmopolitan taste and atmosphere. It
gives the lights, roads and clubs in popular, modern and even in
classical way. Its desert grains picks up the visitors firm and keeps them
at clubs and bars beautifully.
All of these factors have caused the bar scene in Manama to thrive. It
is centered around hotels because these are the most modern buildings
in the city with its basic three districts namely Adliya, Hoora, Juffair
and Business Center.
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
1
Issue No 09
January 2016
Eye on Bahrain
By Chadi Chidiac from PROTOCOL
Night clubs in Manama are the current trend,
they have recreated the city with drinks;
dance and meeting points for life and
business; they play an eclectic line-up of
music that includes house, hip hop, R&B,
Latin grooves and a range of other genres.
Most high end hotels in Manama have
snazzy bar zones that play mostly jazz or
live music. Their ‘happy hours’ feature an
array of bright and discounted cocktails.
Clubs are heroes with constituting around 35
percent of the food and beverage supply.
One of the most famous clubs in the city is
Klub 360 at the Elite Crystal Hotel in Juffair
where strict dress code applies and an after
party venue, a Club in its own right open till
dawn getting really crowded during the
weekend while the previous management of
the former Z Club has now moved on to open
another hype venue called Tabu Club in the
Panorama Hotel Juffair, right across the street
from Elite Crystal Hotel.
Bahrain population reached 1.35 million in 2013 with a growth rate of 4
percentage point. 170,000 live in the Capital and like most of the GCC countries
where expats outnumbers the Bahraini nationals with 55 percent versus 45 percent
Bahraini nationals. Bahraini GDP is scoring a YOY growth of around 4 percent
reaching around $32 billion in 2012 with a GDP per capita of $27,433, an
average figure compared to its neighbors like Qatar with its impressive $92 billion
as well as Kuwait and UAE with $62 and $46 billion respectively.
Bahrain public spending total value of major projects planned or under construction
standing at about $62 billion at the end of June 2013, Bahrain is by far the smallest
projects market in the GCC, accounting for just under 3 percent of the combined
value of projects in the region.
Bahrain’s hospitality market is expected to grow at a CAGR of 2.9% through to
2022. In 2012, 8.5 million tourists visited the country supported by a tourism mix
covers multiple sectors from business travellers to leisure visitors entering via the
King Fahd Causeway linking Bahrain to Saudi Arabia, and international sports fans
attending the annual F1 Grand Prix as well as Bahrain's cruise industry, which once
boasted 50 visits by major cruise liners, has been hit hard by political turmoil since
February 2011 but still recovering and scored 40,000 visitors since the start of the
cruise tourism season in 2013. It’s a diverse market segmentation that is driving
new demand and opportunities supported by initiatives such as the recently
launched 24/7 tourism information hotline. ASPT (the average spending per tourist)
in Manama is around $1,500 generating a decent $12.7 billion of safe-haven
currency.
The food and beverage industry in Manama has been growing exponentially in the
last decade with 308 establishments and a seating supply of around 52,000 seats-
day yielding 0.04 seats per capita.
There are a lot of restaurants in Manama
where you can taste the best delicacies
and exotic tastes from every kind of
cuisine both local and international.
Indian themes are one of the most
popular places in Manama justified by
more than 310,000 Indian expats or 22
percent of the population, clubs and
restaurants are spread across the city
like the former Cocoon Lounge, famous
among the house and techno lovers in
Bahrain, transformed itself into an Indian
club, often receiving guest DJs from India
while around 8 percent of the total
restaurant supply are Indian concepts with 25 restaurants in total. There
are also around 19 Lebanese and oriental restaurants that play Arabic
music and occasionally even feature enthralling traditional dance
performances. A great way to unwind is to share a traditional hookah
pipe or shisha with friends in a typical Arabic/Lebanese restaurant.
Average check in the capital’s establishments
are considered as medium-high with around 52
percent of total establishment exceeds $30 per
check. Venues exceeding $40 are usually
fancy restaurants and clubs units housed in 5
star hotels around the business center for
business men and people having concern with
trading. Discussions are made and contracts
are signed. So at such places several multi-
national personnel can be seen while settling their issues and making
business trips well settled. The amount of tips is usually included in the
total bill in the majority of the local restaurants. As a rule, the size of tips
estimates 10% of the total.
Nightlife has its rights reserved even in atmosphere of Arab traditional
culture. Partying is a part of the nightlife in Manama. Though in other
cities of Bahrain, drinking is not taken as likeable by the natives but
tourists rush to this city for the relaxed assured freedom. A reality enabling
a promising prospect and consensus about the future of tourism and
hospitality sector with a total contribution to Bahrain’s GDP is forecast to
rise by 4.5% from US$3.97 billion (16.5% of GDP) a year ago to
US$6.16 billion (17.4%) by 2021.
Compiled by PROTOCOL

2. Fast food chains and restaurants are making aggressive ploys to either enter or dominate markets in Russia,
Mexico, China and the Middle East. According to recent media reports, KFC plans to have 300 outlets in
Russia by 2015. That means doubling its presence in the country and building 30 to 40 restaurants a year.
At a press conference last week in Singapore, Starbucks executives also told reporters the coffee giant plans
to triple the number of locations in China to 1,500 stores by 2015, up from 470. The company also expects
to open 700 shops in South Korea by 2016. It also plans to open its first outlets in India next year, and entered
Vietnam in 2013. Meanwhile, Smashburger, a growing chain whose signature burger is ‘smashed' on a flat
grill, announced its plans to expand into the Middle East - the first move outside the US. The company also
plans to take the brand into Canada and the UK. The first international locations will be in Kuwait, Bahrain
and Saudi Arabia over the next three years. And finally, Panda Express opened its first international location
in Mexico over the weekend. Its next possible move could be to China.
Continuing its international expansion, online restaurant and events guide Zomato with its 285,000 listed
restaurants in 100 cities, 17 countries and 35 million monthly visitors, has now entered New Zealand by
launching operations in Auckland and Wellington. It has also strengthened its operations in South Africa and
United Kingdom by launching operations in Cape Town (South Africa) and Manchester & Birmingham (United
Kingdom) respectively. While in India, Zomato has added Guwahati section and now offers listings for 14
Indian cities. Globally, it now claims to offers listings from 114,500 restaurants across 27 cities in eight
countries including India, UAE, Sri Lanka, United Kingdom, Qatar, Philippines, South Africa and New Zealand.
Zomato CEO Deepinder Goyal informed that they are planning to expand to Australia, Turkey and Indonesia
over the next few months. They also plan to expand to continental Europe, South America and strengthen its
presence in Middle East and South-East Asia during the current calendar year. Goyal, Zomato plans to invest
$2.5 million for these new five cities. The company told MediaNama that this is a combined budget set by
them for these regions but it declined to share any further details on this.
TripAdvisor branded sites make up the largest travel community in the world, reaching 315 million unique monthly visitors, and more than 200 million reviews and opinions covering more than 4.5 million
accommodations, restaurants and attractions. The sites operate in 45 countries worldwide, including China under daodao.com. TripAdvisor also includes TripAdvisor for Business, a dedicated division that
provides the tourism industry access to millions of monthly TripAdvisor visitors. In addition to the flagship TripAdvisor brand, TripAdvisor, Inc. manages and operates websites under 24 other travel media brands,
connected by the common goal of providing comprehensive travel planning resources across the travel sector with total revenues increasing by 25% (approximately 35% on a constant currency basis) to $405
million in second quarter of 2015, compared to $323 million for the same period in 2014.
Trend in 2014 saw the continuation of the convenience trend in the United Arab Emirates. Large parts of the population are working long hours and especially single men are often looking for convenient, quick
meal solutions, which are usually found in fast food. While a competitive landscape is emerging in GCC with Kuwait Food Co (Americana) SAK, led fast food in value terms throughout 2014 and accounted for
13% of overall sales. The company’s success is strongly supported by KFC, but it also represents Hardee’s in the United Arab Emirates. KFC is very popular among different consumer groups in the United Arab
Emirates and has particularly strong appeal to Filipino expatriates, who buy the chicken as a substitute for the famous chicken wings offered by Jollibee in the Philippines. Prospects inclined toward premium
options, especially within burger fast food, are expected to gain further popularity inside the country, as disposable incomes are set to increase. Especially young, well-educated expatriates with a high salary
are increasingly drawn towards outlets such as Elevation Burger, Fatburger or Burger Fuel, which are expected to increase their presence over the forecast period by opening further outlets in the United Arab
Emirates.
South Africa will offer strong growth opportunities for the fast food industry over the next five years, driven by rising private consumption and a strong eat-out culture. Foreign fast food companies will intensify
their efforts to expand in the country, despite high competition from domestic players. We maintain our bullish view for the South African fast food industry over our forecast period to 2019. Despite high
unemployment threatening the consumer sector, we forecast per capita food consumption to grow at a compound annual rate of 7% over 2015-2019. A strong eat-out culture and high meat consumption drive
opportunities for fast food. In South Africa, fast food chains are popular among wealthy individuals and among the growing middle class. Foreign fast food companies will continue to expand quickly in South
Africa during the next five years. In addition to being a fast-growing market, South Africa is often the first step towards broader expansion in Sub-Saharan Africa. Yum! Brands' (owner of KFC and Pizza Hut) is
already well established in the country, with more than 700 KFC restaurants. Following KFC's success, Yum! Brands' re-opened its first Pizza Hut outlet on September 18 2014, after six years of absence. Since
its first store opened in May 2013, Burger King has also expanded quickly in South Africa and plans to operate 100 restaurants by 2015.
Hilton Worldwide is expecting to launch two more of its brands in the Middle East as part of its expansion plan to double its presence in the region over the next three to four years. Hilton Worldwide president
and CEO Chris Nassetta said there was the potential to debut Hampton by Hilton and Embassy Suites in the Middle East and that ultimately, he wanted to bring all 10 brands to the region. When asked whether
he wanted to roll out the brands, Nassetta responded: “Yes of course, actually probably all of them, but I’d say probably next on the list would be Hampton by Hilton, I think we have a couple in the pipeline.
“Right now we have Garden Inn, we have Doubletree , Hilton, Conrad, Waldorf Astoria; we have five brands. “I would say that the others that we’ll definitely introduce in this region will be Hampton by Hilton
and likely Embassy Suites.” Currently, Hampton by Hilton has 1937 hotels open in 15 countries and more than 350 hotels in the pipeline, with the 2000th property expected to open this year. “Star systems
don’t mean anything anymore but to use the vernacular, if Hilton Garden Inn is four-star then Hampton is in this part of the world three-star, it’s an amazing product but it’s a little bit lower price point and I think
as the lodging market matures in the Middle East it will allow us to continue to serve more customers,” commented Nassetta. All-suites brand Embassy Suites is much smaller, with 215 hotels open in five countries
and 25 hotels in the pipeline. “[Embassy Suites] has been primarily a North American experience but increasingly my sense is customers want that product,” said Nassetta. “The opportunity to do Embassy is
much more limited because there are only so many of those that you do in terms of demand for an all-suites product but I do think the demand will be there. In terms of a Hampton and Garden Inn, I think there’s
a much bigger opportunity in terms of number of units,” said Nassetta, referring to a recent partnership with wasl Hospitality to bring mid-priced hotel brand Hilton Garden Inn to the UAE for the first time,
following a signing agreement for two new hotels in Dubai. Nassetta also revealed that Hilton Worldwide was hoping to launch a new, 11th brand, most likely “in the lifestyle space at some point in the future”.
Hilton Worldwide currently operates 66 hotels with 20,145 rooms in the Middle East and Africa, with 67 pipeline properties comprising 20,306 rooms. “In the next three to four years our plan is to double in
the region, in the UAE, we’d obviously like to see something similar. I think we have 14 hotels in UAE and we’ve got seven in the pipeline but we’re working diligently to continue to enhance that pipeline so in
the next three to five years, we certainly want to double,” asserted Nassetta.
In Figures
LatestProjects
Lebanon
PROTOCOL was assigned to execute a feasibility study for an ice cream parlor in Kuwait. The study includes emerging
trends diagnosis hence the viability of the concept. The concept will include a limited menu of salads, crepes and fresh
fruits cocktails to upgrade the main concept and increase its GCA.
Lebanon
PROTOCOL was assigned to revise the business plan of a mixed use project in UAE – the project was restructured to fit
mid-term future demand as forecasted shifting trend’s pattern. Business plan and concept identity was reinvented and
financial assumptions were reposted based on the new business structure.
UAE
PROTOCOL was assigned to represent a Lebanese –based franchise entity in Sharjah. PROTOCOL business scope was
to formulate a diagnosis plan of the mother company in Beirut before undertaking a market study and executing a detailed
SWOT analysis report in addition to a site evaluation survey to secure soft transfer of a strong and viable concept on
solid ground.
Lebanon
PROTOCOL was assigned to develop and execute an expansion plan for a food and beverage beachfront cluster in
Jounieh. The project will include restaurants and lounges constituted of new (created by PROTOCOL) and already established
food and beverage brands.
KSA
PROTOCOL has been assigned to represent a Lebanese food and Beverage brand in order to set up brand’s operating manuals and procedures and to structure, develop and
negotiate the terms and conditions of the franchise agreement
Qatar
PROTOCOL was assigned to execute a full scope business plan and concept development of a five star dry hotel in Doha Qatar. The concept is expected to open in early 2017
with 580 keys, 7 food and beverage outlets and numerous facilities and amenities.
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
2
PhotographiesbyRiadChelala

3. 7 Minutes with Mr. Nouhad Damous
Editor in chief Hospitality news organation
Q What do you think are the most influential factors on the Hospitality sector in Lebanon and the Middle East?
AWithout doubt, the most crucial factor is regional stability. Without peace, it is difficult to attract foreign tourists and for the sector to flourish.
Q Where do you think the hospitality sector is heading on the short and medium run in the region in the shadow of
the region turmoil?
A The sector is gradually moving forward with the opening of new hotels and restaurants across the region and Lebanon has witnessed a
shift in the nature of its tourism. There has been an upsurge in the number of village guesthouses and the development of rural tourism activity across the country, particularly given
the support of the Lebanese Ministry of Tourism and foreign aid programs.
Q Do you think that the Lebanese market will start showing signs of recovery in the coming 48 months?
A I do not know for sure but it very much depends on the status quo within the region at large and the political situation at home.
Q What is your opinion about the Hospitality educational institutions in Lebanon and their competency with
their regional counterparts in terms of their levels and standards?
A The standard is good and they attract a number of foreign students, particularly from the Arab
countries. Many of the hospitality schools in Lebanon take inspiration from the top establishments
in Europe and follow a more international curriculum.
Q What is the brilliant next idea that might show to make a revolution in the hospitality business – ideas like POS,
tablet menus, magnetic cards, etc?
A In a world where everything is becoming more hi-tech, I would expect something technological and
revolutionary although I am not sure what it would be!
Q What are the needs of the Lebanese hospitality market at the moment from the eyes of the customer and what in
your opinion should be made to fulfill this or these need(s)?
A People are looking for something unique and Lebanon has plenty to offer. It is critical to make virtue of the weather, the heritage, the
landscape and the touristic sites and to invest in these. There has been a big push over recent years to promote the gastronomy and the
country’s rural tourism, a joint effort between the public and private sectors.
Q Do you think that government and ministries should be playing an integral role in the sector in terms of
motivational schemes in order to attract and stimulate local and FDI (foreign direct investments)
A Absolutely. In addition, the syndicates, educational institutions and tourism bodies have a fundamental role to play.
Q Do you think that the hospitality sector needs more cooperation between the educational and corporate
sector and how do you think they should collaborate?
A Yes, there needs to be closer cooperation as the educational institutions need to identify the needs of the corporate sector in order to
fulfil them and educate accordingly.
Q What is your advice and what are the things in your opinion that investors in the hospitality sector should be
aware of and take into consideration for their new ventures?
A Besides the traditional indicators (reports and statistics), Hospitality News Middle East is an excellent source of information exposing the
latest news, developments and industry forecasts. It offers in-depth analysis into the state of the markets, opportunities and challenges
throughout the region.
STARGUESTINTERVIEW
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
3
People are looking for something
unique and Lebanon has plenty
to offer
“ “
“ “
In a world where everything is
becoming more hi-tech, I would
expect something technological
and revolutionary although I am
not sure what it would be!
There has been an
upsurge in the number
of village guesthouses
and the development of rural tourism
activity across the country
“ “
There has been a big
push over recent years to
promote the gastronomy and the
country’s rural tourism, a joint
effort between
the public and
“
“
Mr. Nouhad Damous
“ “
“Hospitality News Middle East is an
excellent source of information exposing
the latest news, developments and
industry forecasts. It offers in-depth
analysis into the state of the markets,
opportunities and challenges throughout
the region.
Many of the hospitality schools in
Lebanon take inspiration from the
top establishments in Europe and
follow a more international
curriculum.
“

4. 4
Hospitality Marketing Seminar
Protocol will be holding a one day seminar around Restaurants Downsizing and Exit Decisions the 25th April 2016 at Intercontinental Phoenicia
Hotel Beirut. It is a valuable program for all professionals looking for better perception on business assessment and diagnosis planning as well
as decision making process taking into consideration all influential factors.
For all information about our services, projects and all upcoming seminars visit protocollb.com
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
MEGAPROJECTS
KŸEBEACHRESORT
KŸE brings you the best of both worlds: privacy and entertainment; it is a lively community fit with all types of entertainment
for all family members, and a calm haven where serenity and peace is of utmost priority. The chalets also feature a private
outdoor garden or a private rooftop terrace, offering the select owners the advantages of a 400m spotless beachfront
where sand and sky never intersect. With a lifestyle driven design, KŸE will be a vibrant ‘people place’ featuring 110,000
sqm landscaped areas and amenities and a strategic tenant mix.
Destined to become the largest and the most unique beachfront community along the shores of Lebanon, this 200,000 sqm
mega project will seduce you with its magnificent low-rise architecture and contemporary design; Each chalet enjoys a
private garden or terrace, and benefit from 110,000 sqm landscaped areas and amenities, on top of a 95,000 sqm yachting marina.) KŸE is the brainchild of Rise Properties and
Saab Marina, both committed to creating high-end, urban projects in prime locations, where fine architecture doesn't go unnoticed.
ManagementSolutions
Downsizing
How to close a single unit without damaging the concept
Closing a restaurant outlet means more than simply walking away from it. In fact, shuttering the business
can be almost as much a pain as opening it. From operational issues involving staff, equipment and leases
to the potentially devastating psychological after-effects the closure can have on customers of surviving
locations, the stakes, ironically, can get high just when you thought a whole bunch of your problems were
finally over. Shuttering a unit is always tough, as it often gives out negative messages about the
health/prosperity of the business and the brand. If a unit is underperforming in a specific location and
requires closing, awareness activation is a must putting a spin on to prepare the customers. “The store you
finally decided to close may have weakened you financially because you carried it for so long that you
now don’t have the working capital to, say, do some of the capital improvements that you had planned to
do on one of the other stores,” says consultant Chris Tripoli, FCSI, president of the A’LaCarte Foodservice Consulting Group, a partner of PROTOCOL based in Houston.
“By not making those improvements maybe you’re losing some potential sales increases or even worse, carrying the weak unit may have drained working capital needed to sustain another weak but
workable unit through a slow period.”
Tending to Psyche
If handled correctly, closure can have minimal effect, if any. If handled incorrectly, however, it can send shockwaves through a system, the most significant of which
could be psychological. If the surviving stores are in the same marketplace the closure could shake consumer confidence in the brand. The first issue is what happens
to the image, the power of the brand in the mind’s eye of the consumer.
If going from three stores to two in the same city, it may cause a shaking of confidence and the customer base might be thinking that brand equity is on the wane,
and the others are going to go soon. The closing affect people. It may be a couple of weeks of confusion, but for the most part business may actually gain some
volume. People will redirect themselves, which may actually result a boosted sales. Confusion won’t take long to materialize, as soon as a restaurant is closed,
people think that things are bad and it’s going out of business. Indeed, the concern will come also from suppliers and other stakeholders in the industry. A decent
amount of explaining should be done in order to get people to figure around that the truth is this was a business decision. And if there are intensions to open up new
restaurants, closure decision should be perceived as a strategic decision saving time and effort to be be spent on a new restaurants, not to support an old one.
In Restaurateur’s Favor
There are at least two points in a restaurateur’s favor that may help ameliorate the negative effects of closing a unit. One is that because of the economic and political
turmoil in the region, society is more used to seeing businesses fold than ever and it’s getting to be less and less of a shock to the public to see one happen. It’s easier
to accept it as just part of the business, a business issue and it has nothing to do with them or their food.
Second, faster-than-ever-before-media make it easy for an operator to get his message out to his core customer in advance of any negative reaction. Words are
easily spread through social media to followers.
Thought minimized, there may still be damage due to the closure. For instance, the market value of the brand might take a hit, which means the next time they want
to open a new location landlords are going to be asking more questions, and might ask for steeper credit. Banks and investors are also going to be looking at them
a little bit differently, perhaps even asking for more. If planning on selling franchises the closure will need to be disclosed and explained.
3Smart Planning
After deciding to shutter a unit, the brand signage and graphics should be taken down immediately and the windows covered with film or nonporous paper.
Unfortunately, customers have a short memory and they may not even remember what the business was in that location. Servers should also be briefed and
encouraged to give gift cards to current customers, to be used after a specified closing date, at other locations. The staff should be upbeat, act professionally with
similar messages communicated virally through a BTL (below the line marketing) plan. Closing units should have a professional team and if the lease allows, and
equipment can be moved, it can be stored for future use
or to replace similar equipment in existing stores. Staff
should also work closely with an accountant to maximize
tax benefits of loss. Beyond that, integrating star performers into other unit operations is highly
advised while taking the opportunity to unburden the company of less-than-stellar performers.
And Don’t Forget Your Landlord and Suppliers
Chances are the landlord knows well in advance that the operator is leaving. Depending on whether
there is a guarantee or surrender clause, the operator can be on the hook for the remainder of the
life of the rent or lease. Landlords will often retain a professional broker to lease the space to another
restaurant, as the infrastructure is already in place. If the operator has favorable rent, the landlord
may be happy to see the operator go so he can raise the rent and get a better tenant. More
operators of late have opted to reach out to an attorney for approval of a sublease.