Kassaa: Lebanon has 870 franchise businesses as sector looks to Africa

Lebanon’s franchise sector is seeking opportunities in Africa as it faces pressure on sales and a decline in the number of businesses. In an interview published by the Lebanese Economy website on 26 October 2026, Yahya Kassaa, president of the Lebanese Franchise Association, said the number of franchise businesses stood at 870, compared with 1,100 recorded in an earlier survey conducted in partnership with the European Union. He highlighted a focus on Africa and Syria during 2027.

Business numbers fall as counting outlets becomes a priority

The figures announced by Kassaa prompt a fresh assessment of the size of Lebanon’s franchise sector. The change from 1,100 to 870 represents a difference of 230 businesses. However, this concerns the number of businesses, not a reported total of branch or outlet closures — a crucial distinction when assessing conditions on the ground.

Kassaa explained that the association had carried out an internal review and a comprehensive reassessment of the franchise sector during the year, with the findings to be published later. He confirmed that business numbers had fallen, but argued that this was not necessarily an unhealthy development, stressing that his main concern was the number of outlets actually operating.

He therefore announced plans for a future survey of branches. The business count indicates a change in the number of companies in the sector, while an assessment of its actual retail footprint awaits a separate outlet count. The two business figures should not be treated as a direct measure of the size of the branch network or its workforce.

Sales pressure links the domestic market to the Gulf

Kassaa described the year as difficult for economic activity in Lebanon, with the exception of the food sector, and reported sales declines ranging from 16% to 40%. He linked this downturn to pressure on employment, operations and branch numbers, amid a crisis that he said had deepened alongside developments in the Gulf.

He identified four Gulf markets as key destinations for Lebanon’s franchise sector: Saudi Arabia, the UAE, Qatar and Kuwait. In his assessment, difficulties and slower activity in these markets are adding to the pressure on Lebanese businesses already grappling with domestic challenges. He cited this interdependence as one reason for taking a highly cautious view of 2027.

According to Kassaa, the relationship extends beyond Lebanese brands’ overseas operations. He also highlighted the importance of remittances from Lebanese people working in the Gulf for domestic consumption and investment, warning of the impact of any disruption to these flows. He cited inflation, taxes, customs duties and environmental charges as additional burdens on Lebanese businesses, without announcing any new franchise-specific regulatory measure.

Africa and Syria among the priorities for 2027

Against this backdrop, Kassaa said the shift towards Africa was an attempt to offset losses by entering new markets. This reflects a search for opportunities beyond the main Gulf destinations, rather than an announcement of specific openings or new franchise agreements. His comments concerned the direction and priorities of future efforts, not detailed expansion plans for individual brands.

Kassaa also identified Syria as a potential positive factor, while noting the slow pace of activity there and the presence of some Lebanese businesses in the Syrian market. He expressed hope that Syria would become a viable destination for business and that companies could strengthen their strategic position across Syria and Africa. He said this approach would be a focus in 2027.

These ambitions were accompanied by caution about the months ahead. He described a six-month wait-and-see period during which domestic and external changes were expected, and voiced concern that the crisis could worsen. The search for new markets should therefore be understood as an effort to sustain operations and restore growth, rather than a sign that existing difficulties have passed.

Business continuity comes before expansion decisions

Kassaa also outlined some of the measures businesses had taken in response to the crisis. He said some international brands had relocated from Lebanon to nearby countries, including Cyprus, the UAE and Saudi Arabia. Other businesses had relied on funds transferred from abroad, although money had also moved in the opposite direction.

He described these moves as temporary measures to maintain business continuity and cover operating costs for a limited period until conditions improved. In his account, they were more closely associated with crisis management than with the steady, organic growth he stressed was needed.

Concluding the interview, Kassaa called for a different economic vision for Lebanon, defining the respective roles of businesses and the state, and expressed his willingness to contribute. His account combines a reassessment of domestic business numbers, efforts to support operations and a search for opportunities in new markets, with future decisions still dependent on how conditions develop.

Practical takeaway: Brand owners and investors should distinguish between business numbers and outlet numbers, and assess liquidity and operating costs before expanding. Africa and Syria are markets to watch among the priorities for 2027, not confirmed locations for new openings or franchise agreements.