After an illustrious government career, Dr. Adel Bukhowa’s name was set in stone after founding what eventually became one of the largest quick-service restaurant chains in the GCC region – the Yum Yum Tree Food Court. Recently sold to Kuwait-based Global Investment House, his brainchild is poised to further expand its international operations in coming years. In an exclusive interview with BIG, the visionary tells us more about the sale of his franchise, future plans for his holding company, and the secrets to his success.
Let’s start with a little background about yourself: what are some of your educational and work experiences prior to founding Yum Yum Tree?
After graduating from high school in Bahrain, I travelled to USA, where I received my Phd in education in 1978. I then returned to Bahrain and worked for the Bahrain Monetary Agency, now known as the Central Bank of Bahrain, and later the Ministry of Education. I founded my first business, Dolphin Pools in 1987, which was soon followed by a restaurant chain called Socrates, which was quite popular in its day. I then relocated to Hawaii, where I lived for three years, before moving back to Bahrain and founding Yum Yum Tree in 1995.
How did you come up with the concept of Yum Yum Tree? Could you give us a scale of the size of the chain’s operations in the GCC region at the time of the sale?
I’d always found the restaurant business very interesting. I’d first been exposed to the food court concept in Colorado, USA, in 1975. The place had a truly international feel to it, serving a range of different cuisines from all over the world. When entering the place, patrons would receive a “passport”. Every time they ate at a certain place, or “travelled” to a new location, their passport would get stamped. Once they were ready to leave, their passport would get checked and they would pay accordingly. I found it to be a very unique experience – one that stayed with me for a very long time. 20 years later, I brought the concept to Bahrain. Today Yum Yum Tree has over 180 branches all over the GCC.
Could you give us a brief overview of the Bukhowa Investments Holding Company and its business interests?
By 1995, I was already an entrepreneur, but it was Yum Yum Tree that really switched my career into high gear. After the success of Yum Yum Tree, I decided to start diversifying my business interests. The Bukhowa Investments Holding Company was founded in its current form in 2002. Under the umbrella of the holding company, today we own and operate a number of businesses related to the real estate and hospitality sectors.
Yum Yum Tree is the master franchisee of more than 20 international brands in the region. How do you select which franchises to introduce into the region?
The idea behind the food court concept was to offer as large a variety of cuisines as possible. So we carefully look at all the franchises that enjoy relative popularity in their country of origin, are unique, and might appeal to a wide consumer base in the region.
How do you ensure that branches of Yum Yum Tree in other countries stay true to the company’s standards?
Yum Yum Tree maintains two headquarters – the main headquarters in Bahrain, and a secondary one in Dubai. We also have teams from Canada and the USA that visit the branches to do quality checks. Lastly, we have done our best to hire the most qualified people to join the team. The combination of these factors allowed us to closely monitor the branches around the region to ensure that they meet the standards of the brand.
The general consensus is that the Quick-Service Restaurant (QSR) sector is far less affected by economic downturns that the fine dining sector. How far would you agree with that statement?
I’d fully agree to it. In fact, the QSR sector is one that is still growing, and seems almost completely resilient to the current economic situation. People today lead extremely busy lives and are always in a hurry, which makes the idea of quick-service more relevant than ever. Furthermore, the prices offered by QSRs such as ours are still considered affordable for the vast majority of our regular customers. Even with the reduction of their disposable income, our prices still fall within budget.
How has the QSR sector changed since the founding of Yum Yum Tree in 1995?
The biggest difference is that there is a lot more competition today. In 1995, we had the advantage of being a completely unique concept. Another major difference would be people’s changing tastes. People’s preferences and tastes are constantly evolving, and it’s important to adapt to change in order to stay ahead of the game. Lastly, the use of mobile technology has had a huge impact on the industry. Apps such as Talabat have helped our outlets increase sales by nearly 20%!
How did the sale of the franchise with Kuwait-based Global Investment House take place? Did they approach you, or were you actively looking to sell the business at that point?
The deal itself was a fairly complicated process that took nearly a year to finish, as there was a lot of legal paperwork involved. At that point, we were looking to sell Yum Yum Tree as we felt that we had done as much as we could with it, and were ready to focus our attentions to our real estate projects. Under the new ownership, Yum Yum Tree will receive a substantial financial backing, with which the operation will soon enter new international markets. We wish them the best of luck!
With regards to Yum Yum Tree, what have been some of the major obstacles you have faced, and how have you overcome them?
One obstacle we regularly faced was the frequent increases of our rental prices, in some cases being doubled without prior notice. The law doesn’t do much to protect the retailers in this respect. Another difficulty is the labour laws. With the current system, employees are able to mobilise themselves very easily, many times leaving the company without any prior notice.
What, in your opinion, are some of the most essential qualities of a successful entrepreneur?
You need to make sure that you’ve put enough thought into your concept, and always make the quality of your service or product your first priority. With the food industry in particular, you also need to pay close attention to the location of your outlets. One often-overlooked factor to one’s success is a competitor’s mindset. No matter what business you start, you always need to be prepared to deal with competition. Whether you are competing in the areas of price or quality, you need to be mentally prepared to constantly innovate and evolve in order to retain your share of the market. However, this kind of competition is always healthy as complacency is a one-way ticket to mediocrity.
How would you best describe your style of management?
I would describe myself as generally easygoing in my approach. My door is always open to all of my employees, regardless of status or rank. I’ve done my best to do away with traditional company hierarchy and am always ready to listen to and receive feedback from any of my colleagues.
In what ways has working closely with your son proved to be a hindrance and in what ways is it an advantage from a business standpoint?
My son, Omar oversees our holding company’s operations in Dubai. It’s been a very positive experience, as working with Omar is like working with a dear friend. We enjoy a close relationship, which is very important in a professional setting, as trust between partners is crucial to the success of any business.
Outside of work, what are some of your main hobbies and interests?
I enjoy travelling and learning about and experiencing different cultures. In the past I was also an avid skier, although I don’t do much of that these days!
What are some of the Bukhowa Investments Holding Company’s future business plans?
For the moment, we are focusing primarily on our real estate projects. These include a hospital in Riffa, which has just been completed, and the Fiesta shopping mall in Saar, which is currently under construction.
From businessingulf.co.