Jonathan Doughty is a global thought leader, consultant, speaker, moderator and C-suite executive in the foodservice and leisure sectors working around the world in retail, transit and leisure. In this column, he discusses the expansion of restaurant and leisure brands internationally and what critical considerations should be taken into account.
Expanding a restaurant or leisure brand into international markets can be an exciting growth opportunity, but it is also one of the most complex strategic moves an operator can make. While brand strength and a successful domestic model provide a solid foundation, international expansion introduces new variables ranging from regulation and finance to culture and supply chain realities. Operators who underestimate these complexities often struggle with inconsistent execution, margin pressure, or reputational risk.
This article outlines what I consider to be five essential considerations, providing a practical guide to support informed decision-making.
1. Market and Cultural Alignment
Understanding the cultural context of a target market is arguably the most important starting point. Food, service expectations and leisure behaviours are deeply rooted in local culture, meaning what resonates in one country may not translate seamlessly into another.
Operators must assess dining habits, price sensitivity, alcohol consumption patterns and day-part dynamics. For example, portion size expectations, spice tolerance, dietary preferences and the importance of communal dining can vary significantly across regions. Beyond food, service style also matters – some markets expect efficiency and speed, while others prioritise hospitality and personal interaction. Successful brands typically balance authenticity with localisation.
2. Financial Structure and Investment Strategy
International expansion requires careful financial planning and realistic assumptions. Capital expenditure, property costs, taxation, currency risk and labour economics can differ widely between markets and materially affect profitability.
Operators must determine the most appropriate entry model – company-owned, joint venture, franchise, or licensing. Each structure carries different capital requirements, control levels and risk exposure. Franchising can accelerate growth with reduced capital investment, but it requires strong governance and brand protection mechanisms.
Currency volatility is another key consideration, particularly for brands sourcing ingredients or equipment internationally.
3. Governance, Regulation and Compliance
Regulatory frameworks vary significantly across countries and can impact everything from property acquisition to food safety, employment law and alcohol licensing. Failure to understand and comply with local regulations can lead to delays, fines, or reputational damage.
Operators should undertake thorough legal and regulatory due diligence, covering licensing requirements, zoning restrictions, tax obligations and labour regulations. Intellectual property protection is also critical, particularly in markets where brand imitation or trademark disputes may occur.
Governance structures must be robust, especially when working with franchisees or joint-venture partners. Clear contractual frameworks, defined performance metrics and regular compliance audits help protect brand standards and ensure operational consistency.
4. Supply Chain and Operational Infrastructure
A reliable supply chain is fundamental to delivering consistent quality and protecting brand reputation. However, replicating domestic supply networks internationally can be challenging due to differences in ingredient availability, logistics infrastructure and import restrictions.
Operators must evaluate whether to source locally, import key ingredients, or adopt a hybrid approach. Local sourcing can improve sustainability credentials and cost efficiency but may require recipe adaptation or supplier development. Importing core products ensures consistency but can introduce lead times, tariffs and currency risk.
Infrastructure considerations extend beyond food supply to equipment, technology platforms and distribution networks. Cold chain reliability, customs processes and last-mile logistics can all influence operational performance.
5. People, Leadership and Brand Culture
Ultimately, international expansion succeeds or fails through people, even in this AI
world we now live in, I always believe that will be true. Recruiting, training and retaining talent in new markets requires sensitivity to local employment practices, leadership styles and workforce expectations.
Operators must decide how to balance expatriate leadership with local management. While deploying experienced brand ambassadors can support knowledge transfer and protect standards, empowering local leaders enhances cultural relevance and long-term sustainability.
Training programmes should go beyond operational skills to embed brand values, service philosophy and guest experience standards. Cultural awareness training for both expatriate and local teams can improve collaboration and reduce friction. Additionally, compensation structures, career development opportunities and employee engagement strategies must align with local labour markets to attract and retain talent.
Operators who approach expansion with humility, rigorous research and strong local partnerships are best positioned to navigate complexity and build lasting brand relevance. By carefully addressing these five critical considerations, brands can move beyond opportunistic expansion and create a structured pathway to international success. Finally, talk to a lot of people, who live, work and operate in your target regions. They are literally gold dust!
