It is known that in the United States to open a chain the capital required amounts to 1 to 2 million dollars.
Following McDonald’s interest in Iran, Iranian owners of fast-food restaurants responded skeptically to such news. They are sure that this project will face different kinds of challenges. It is no secret that in Iran the food industry’s sanitary standards are some of the strictest in the world.
In addition, domestic owners of Iran’s fast-food restaurants can be proud of the wide range and variety of high quality products using only natural materials which have gone through strict control.
The CEO of a popular Iranian fast-food chain IranWich, Kamran Shourangiz, spoke to Sputnik in an exclusive interview regarding the commercial prospects of the emergence of McDonald’s in Iran and the profit of Iranian fast-food chains over the US ones.
“Fast-food chain IranWich opened in 2006; there are 26 branches of our cafés across the country. We have a very strong team of professionals who undergo training courses of international standards: ISO, as well as the branches themselves organize special training courses to improve skills,” Shourangiz said.
“Therefore, for a foreign restaurant chain to be able to start its activities in Iran, one must be certified and obtain all necessary licenses from the Ministry of Health. As you know, Iranian health standards are very high,” the CEO explained.
Touching on the various standards that need to be met, Shourangiz further added that Iran, being a religious country, has religious requirements — Sharia. “In particular it relates to primary feed, which is necessary for cooking products. Meat and poultry have to be certified as Halal.”
Upon successful completion of all these standards, the international companies need to solve the economic question before opening a franchise. If a chain of McDonald’s or KFC restaurants in Iran wants to compete with local owners of the restaurant, they need to invest at least 1 billion Iranian toman.
“If the costs will be even higher than this amount, it will be very difficult to compete with local restaurants. It can only be possible in view of the popularity of the brand, which it enjoys in the world. But in order to become a global leader in the Iranian market of fast food it is impossible because it is very expensive and not cost-effective in the long run.”
Shourangiz said that such a franchise may work in major cities. But in Iran there are only 6-7 large cities. “In the traditional regions of the country it is almost impossible as only national cuisine is popular there and the west cuisine even McDonald’s is not. So I think that we as the owners of fast-food restaurants should not fear competition from even such popular brands as McDonald’s.”
