While a few global brands have established themselves in the country after several years of operations, the influx of international franchises has presented the residents of the sultanate with an array of choices that had, until recently, been unavailable to them.

In the past few months, Brunei has seen the entry of international coffee chains, casual dining restaurants, bubble tea brands, and fast food companies through franchising.

Among the recent entrants are Gloria Jean's Coffee from Australia, Kenny Rogers Roasters from Malaysia, Auntie Anne's Pretzels from the US, Japanese restaurant Sushi Tei and Killiney Kopitiam from Singapore, and bubble tea brands Ochado (Japanese) and Gongcha (Taiwanese).

It has also been reported that a few more, including Taiwanese bubble tea brand Chatime and American iconic coffee brand Starbucks, will soon be making a foray into this country of 400,000 people.

"Franchises not only benefit local consumers. Having international franchises in Brunei also helps tourists and expats familiarise themselves more with the country," Tan Kheng Tong, operational manager of White Tangerine, the local franchisee of Japanese pastry brand Beard Papa's, pointed out.

For the government, the strong interest of international franchising firms reflects Brunei's attraction as a market despite its small population.

"It shows that our consumer has buying power and businesses probably choose to open a franchise because it is an easier business to do," Department of Economic Planning and Development (JPKE) Director-General Dr Hajah May Faezah Haji Ahmad Ariffin said.

Franchise operators attribute the sudden growth in the number of franchises to a shift in Brunei's demographic.

In an interview on Thursday, Stanley Tham, Royal Brunei Catering (RBC) advisor to the board of directors, said that Brunei's young population has contributed to the surge in demand for global brands.

As of 2011, he said, 50.1 per cent of Brunei's population was aged 24 and below.

"They (young people) are more exposed to (life) overseas, and they returned having new taste," Tham said.

RBC is a government-linked company which owns several local and international food franchises in Brunei, including McDonald's, Express Fast Food, Seasons, The Airport Restaurant, Emperor's Court and Dynasty Restaurant.

It owns McDonald's through subsidiary Makan Ceria Sdn Bhd. Through another subsidiary, Rizq Barakah Sdn Bhd, the company brought in Singaporean casual dining franchise Fish & Co.

Tham also said that the influx of expatriates and foreign entrepreneurs as a result of the government's efforts to attract foreign investment over the recent years also helped stimulate growth in franchising in the country.

"Local business expectations, entrepreneur business viability, the many major international events organised in Brunei as well as the revamped Brunei International Airport are also very strong catalysts," he added.

Franchise operators also said that the industry is gaining popularity because franchising provides a relatively easier way for entrepreneurs to break into the market.

Erwin Manuel, the manager of Auntie Anne's, said that franchise owners prepare everything for their local partners.

The local franchise of Auntie Anne's is held by businesswoman Gina Tan, who also owns the franchise for the Batu Satu branch of Gloria Jean's Coffee. Among the other franchises held by the group are Singaporean brands PastaMania and Sushi Tei.

"One thing that businesses are looking for is the support, so franchises give you their systems, their recipes and their manual and you just have to follow their standard," Manuel said.

Tan of White Tangerine also said that local franchisees are immediately exposed to business models that are already established overseas.

"This means that they will have access to the operational standards of the brand, so businesses are basically given a handbook which they just need to follow," he said.

Franchisers are hoping that the boom would boost business standards in the sultanate, particularly those governing customer service.

"I hope that the influx of franchises would mean that customer service in Brunei is improved, because we need that," said Del Goh, vice-president of KFC (B) Sdn Bhd, one of the pioneers of franchising in the country.

But they are also quick to point out caveats in the franchising business. 

Goh, for instance, pointed out that competition would increase.

"It could go both ways the local businesses could compete directly with the franchises, or they could go the other direction and lower their prices and try to not compete with the franchises within their sector," he said.

RBC's Tham also noted that running an international franchise is still a risky and often challenging proposition in Brunei given the country's "unique setting".

He said that while a strong global or regional brand and reputation may give a franchise a higher chance of success and sustainability, the local franchisee must factor in high operation and marketing costs, the issue of local staffing and stringent requirements, such as the Brunei halal certification.

Nevertheless, the government hopes that more brands would venture into the country in the future.

"More international franchises will lift up the standards in Brunei," JPKE's Hjh May Faezah said.

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