From Local Roots to Global Success: The Inspirational Journeys of RATIO Specialty Coffee, Al Baik, and UAE Entrepreneurs

While exiting The Haram’s sacred doors, the vibrant sign of RATIO Specialty Coffee caught my eye. My curiosity about this local brand and its unique story led me on a journey to discover more, which brings us to this article.

?Starting a local startup, especially in the food industry, is a challenging endeavor. Entrepreneurs must navigate the complexities of flavor acceptance and maintaining consistent taste, which is critical for customer retention. This process involves a deep understanding of local tastes and preferences, coupled with the ability to deliver consistent quality.

?One of the biggest hurdles is managing the supply chain effectively. Ensuring a steady supply of high-quality ingredients can be difficult, especially for businesses that prioritize local sourcing. Supply chain constraints can impact everything from product availability to cost management. Brands like RATIO Specialty Coffee and Al Baik have successfully overcome these challenges by establishing robust supply chain systems that ensure quality and consistency.

?However, these successes are not without significant struggles. High authority fees, expensive rent, and a lack of funding support are common barriers for startups. Government support can play a crucial role in alleviating these burdens. For instance, subsidies on rents, reductions in licensing fees, and easier access to startup capital can make a significant difference. Such support can encourage more entrepreneurs to take the plunge, creating local jobs and stimulating economic growth.

?Commercial banks and funding forums often require past performance data, which new businesses cannot provide. This creates a catch-22 situation where startups need capital to grow but cannot access it due to their nascent stage. Celebrating the success stories of brands like RATIO Specialty Coffee and Al Baik can inspire new entrepreneurs to challenge these orthodox approaches. Both brands started with humble beginnings and faced numerous obstacles. Still, their determination and innovative strategies helped them rise to prominence.

RATIO Specialty Coffee, founded by Al Mulhem & Saudi partners, began with a small coffee shop in Al-Ahsa in 2018 and expanded into a renowned specialty coffee brand with over 80 branches. Their focus on local ingredients and ethical sourcing has resonated deeply with the community, proving that dedication to quality and local culture can yield significant rewards.

?Similarly, Al Baik, founded by Shakour AbuGhazalah in 1974 in Jeddah, has grown into an iconic fast-food chain with over 120 outlets across Saudi Arabia and beyond. Known for its secret fried chicken recipe and affordable pricing, Al Baik has become a household name and a symbol of Saudi entrepreneurial success. The brand’s competitive pricing—typically about 30% lower than international rivals like KFC and McDonald’s—has significantly impacted these global giants within the Saudi market, drawing a loyal customer base away from them.?

In recent times, regional political tensions, especially the ongoing conflict in Gaza, have led to significant boycotts of American brands like McDonald’s and Starbucks. These boycotts have resulted in marked declines in customer traffic and financial performance for these companies in the Middle East. For example, Starbucks saw a 4% drop in same-store sales in the second quarter of its fiscal year, while McDonald’s faced a nearly 4% drop in share prices following a sales slowdown in the region. The boycotts highlight a growing support for local businesses as communities rally around their own, showing a strong preference for local brands over international ones during times of political strife.

The success of these brands underscores the potential for local enterprises to thrive despite the challenges. With appropriate support from government policies and financial institutions, many more entrepreneurs can be empowered to create their fortunes. This will not only foster local economic growth but also build a vibrant ecosystem where new businesses can flourish.

?When examining the success of various support forums in their annual statements, it’s crucial to also consider the local market’s landscape. Many local businesses fail due to a lack of proper coaching and support. Will their owners be able to make another move for a new startup soon? This is a significant question. The success of support forums should be measured by their specialization areas, and it is essential to analyze how many startups in those areas have failed. Understanding the root causes of these failures is vital.

?Consultants should be hired to provide ongoing support to these businesses from the moment they start or submit their proposals. As the entrepreneurial field is relatively new, solopreneurs and entrepreneurs struggle to contact relevant support groups and attract their attention. Instead, these support groups should proactively reach out to startups and provide valuable assistance.

?In modern ecosystems, small and medium enterprises (SMEs) are vital for sustainability and job creation. In Saudi Arabia, SMEs contribute approximately 20% to the GDP, while in the UAE, they account for about 53% of the GDP. This highlights their crucial role in economic growth and employment.

?RATIO Specialty Coffee has grown impressively, establishing over 80 branches across 32 cities in Saudi Arabia and employing more than 2,000 people. This remarkable growth is a testament to the support from the local community, which has embraced RATIO as a beloved local brand. The net worth of RATIO Specialty Coffee is now substantial, reflecting its success and influence in the specialty coffee market.

?The rise of RATIO Specialty Coffee, alongside iconic brands like Al Baik and B Laban, demonstrates that local brands can indeed match and even surpass the quality and appeal of foreign brands. The retention of customers and their unwavering support underscore the strong connection between these brands and the local community. This success story is a lesson for many aspiring entrepreneurs and highlights a significant shift in mindset among the younger generation. They are increasingly valuing and supporting local enterprises, recognizing that homegrown brands can compete on the global stage.

?RATIO Specialty Coffee has not only thrived but has also given international brands like Costa Coffee, Starbucks, and IHOP a run for their money. The strategic positioning, unique product offerings, and a deep understanding of local preferences have enabled RATIO to compete fiercely with these global giants. Unlike the international chains that often bring a one-size-fits-all approach, RATIO’s offerings are tailored to the nuanced tastes and cultural preferences of its clientele, giving it a significant competitive edge.

?RATIO’s emphasis on quality and customer experience has fostered strong brand loyalty, something that even global brands sometimes struggle to achieve. The local community’s support, coupled with RATIO’s innovative marketing strategies and high-quality products, has created a robust customer retention rate. This support is a testament to the brand’s ability to resonate with the local culture while maintaining international standards of quality.

?To all aspiring entrepreneurs: Take inspiration from Al Mulhem, Shakour AbuGhazalah, and the founders of B Laban. Their journeys show that stepping out of your comfort zone and taking risks can lead to remarkable success. Instead of seeking jobs, create them. Build your fortunes within your ecosystem and contribute to the growth and prosperity of your community. The future belongs to those who dare to innovate, adapt, and passionately pursue their dreams.

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A Message to Ahmed AlMulhem : Your story, is more powerful than the smell of coffee beans. We in the UAE are eagerly awaiting the chance to experience the exceptional taste of your coffee in our country. Your journey is an inspiration to many, and we look forward to welcoming RATIO Specialty Coffee to the Emirates.

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Speaking with older residents in the Emirates often brings to light the inspiring stories of Sheikh Zayed. Known for his habit of visiting every corner and discussing issues with people, Sheikh Zayed was a pivotal figure in the UAE’s development. He frequently offered financial support, but uniquely—he encouraged people to trade something, providing them the capital for their ventures. This strategy fostered many successful businesses without the modern terminologies of venture capital or startup incubators. Sheikh Zayed’s approach to supporting entrepreneurship was practical and deeply impactful, promoting self-reliance and economic growth long before these concepts were widely understood. His legacy is a reminder of the importance of direct and thoughtful support in nurturing local businesses.

?Sheikh Zayed’s strategic approach to economic development was innovative and ahead of its time. By fostering entrepreneurship through direct support and encouraging trade, he created a sustainable model for economic growth. His visits to remote areas and personal interactions with the people ensured that the support was tailored to their needs, promoting a sense of community and shared responsibility. This hands-on approach not only helped individuals start their businesses but also instilled confidence and a sense of ownership among the people. Sheikh Zayed’s legacy is a testament to the power of visionary leadership in creating a modern, thriving ecosystem that continues to inspire and drive progress in the UAE.

Written By Kashif Ali Raza

Special thanks Hashem Alfawaz for his valuable inputs

RATIO SPECIALITY COMPANY ALBAIK Food Systems Co. B.Laban - ?? ??? Public Investment Fund (PIF) Ministry of Industry & Advanced Technology | ????? ??????? ???????????? ???????? Emirates Development Bank (EDB) "紧缩"迪拜 – 迪拜的创业公司和人民 BIAC Spaceware - Taqadam Accelerator Cohort 6 Sharjah Entrepreneurship Center (Sheraa) Ahmed AlMulhem