Emerging middle-class brought TGIF back: Donald MacQueen, Regional Director of Asia Pacific

Donald MacQueen has been Regional Director of Asia Pacific for TGI Fridays (TGIF) since the beginning of 2013, having previously looked after the Middle East for them since 2010. An industry veteran, Donald is from the UK and has been involved in various international restaurant businesses since 1992.
Following are selected excerpts from BR Research's sit-down with him last week:
BR Research: Why was it that TGIF left Pakistan before?
Donald MacQueen: TGIF had a hugely successful business back in 1999. But, we started facing problems in getting quality ingredients and a lot of things could not come in. There are some products that couldn't be imported. Without getting the right ingredients, it was better not to run the brand instead of pretending to run it. The other thing is that the industry was quite young at that time. There were only a few Western food brands. So the industry did not develop very well at that time. To a certain extent, TGIF was perhaps a little bit ahead of its time here; still it was doing very well.
BRR: So, it's not that TGIF left because the business was not doing very good here?
DM: No, the demand was good and the restaurant was quite popular back then as well. But, you cannot expect people to keep coming in if you cannot serve them the taste that you're known for. Even now, the demand for TGIF is huge as far as casual dining is concerned.
BRR: Is the rising middle-class the reason behind re-entering the Pakistani market? Or was it because of the opening up of more Western brands in the country?
DM: Yes, we recognised the emergence of the middle-class. But we're not in the business of following what others do, although the opening of more Western brands did indicate that the market had developed more. Not only is there a healthy demand, but also there is an understanding of the brand that TGIF is.
BRR: What kind of cuisine is being offered by TGIF? What market segment are you targeting?
DM: Well, we target anybody who'd like to come by. It's an American food brand with large portion sizes, and that is popular with the Pakistani market. We also offer courses that are unique.
BRR: Are prices not too high for the Pakistani market?
DM: Pricing is always a part of the equation. But, our prices are not at a level where people can afford to come by only once a year. If you're asking me: is it cheap? Then no! But, it is affordable, especially given the quality of food and portion size; it is quite reasonably priced.
BRR: What kind of competition do you see in the market?
DM: Everyone who serves food is a competitor. There's not any one brand that we qualify as our competitor because people have their own choices. But, we're not just about food; it's about the ambience and living the Friday experience. It's a young brand and attracts young people and is very fun-filled.
People come to TGIF not just for food but for escapism as well. We have a sign above our kitchen that says: 'In here, it's always Friday'. You can come here any day during the week and we are going to make you feel as if it was the cherished weekend.
We were the first one to bring in the casual dining concept, and we are the only one in Pakistan who may be qualified as such. Unlike fast food, at TGIF it's about spending time with us and feeling better for being here.
BRR: How do you employ local chefs? Who conducts their trainings and what is the training like?
DM: We have sent many people overseas, beginning with a trip to Dubai where they spent several weeks at TGIF kitchens there. When we opened the first restaurant in Islamabad, we brought over trainers from the Philippines, where we have been operating for almost 20 years, and they trained local chefs.
BRR: Cuisine is an experimental process. Do you allow flexibility to your chefs to experiment?
DM: No, we're not experimental. We're a brand and the brand gives us strict recipes to follow.
BRR: But, if someone has an idea, what is s/he to do?
DM: Yes, we're not completely inflexible. If someone has an idea, there is a rigorous process that is to be followed. It has to fit our brand style. We don't want to serve nihari, for example. We offer what we're good at. In any brand, in terms of food, you don't have a lot of creativity. You should be able to have the same taste of TGIF anywhere in the world.
BRR: Where do you get your ingredients? Do you get them from local vendors?
DM: There are some ingredients that we import because they are simply not available in Pakistan. We also import beef from the United States because there is no quality beef industry in Pakistan, while we use certified quality beef for our cuisine. But, we do use chicken and fish locally, among other ingredients.
BRR: Is beef imported strictly from the US?
DM: We could get it from somewhere else if it meets our standards. But, the US is a preferred choice. There are some countries where they do not allow US imports, so there we try to get it from Australia. We have to ensure the safety and integrity of the product.
BRR: Would you prefer to buy ingredients locally?
DM: Yes, absolutely. We would prefer anything that meets our quality standards and can be bought locally.
BRR: Do your prices also follow some standards set by the brand?
DM: No As per law, pricing cannot be dictated to a country; that is purely a local decision.
BRR: So the prices could vary between Islamabad and Karachi, for example?
DM: They could but they don't. But, you won't see the same prices in the Emirates and Australia, for example. We have to price correctly in order to be able to do business.
BRR: What are your expansion plans? How do you plan expansion, for example, Faisalabad is an urban centre that offers prospects.
DM: We're opening next in Lahore, sometime in the first half of next year. And then we would make an assessment of how well we're doing there and how the market responds. We would expand if we get to know that they want us to serve them.
BRR: What kind of challenges have you faced in Pakistan?
DM: We don't see any problems that are unique to us alone. Besides, working with a local partner and local talent helps in overcoming a lot of challenges that an international business might face in the country. If we can't find a franchisee who shares our philosophy and values, we do not step in. We manage the brand, our franchisees manage the business. We're global experts working with the locals.
BRR: What do you find different here in the Pakistani market?
DM: First, there's no alcohol. In most countries we have bars, and that in itself is one element of our sales. However, there is a lot more that is common than there is a different. Generally, people would not expect poor quality. They would rather pay a bit more for better quality. We're not about price, we're more about value.