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The arrival of Applebee's and IHOP in Trinidad and Tobago is being welcomed by business groups and economists, but concerns remain about what the new franchises could mean for the country's foreign exchange challenges and support for local businesses.

The franchises are expected to open at Grand Bazaar soon, with some business leaders arguing the move appears at odds with the Government's "Buy Local, Build Trinbago" campaign, which aims to boost local production, conserve foreign exchange and strengthen domestic businesses.
Transcript
00:00The Confederation of Regional Business Chambers says it is not opposed to foreign investment,
00:06but believes questions must be asked about the long-term impact on the country's limited U.S.
00:12dollar supply. CRBC Chairman Vivek Charan says while international brands can bring benefits,
00:21franchise fees, royalties, and imported products all require foreign exchange at a time when many
00:28local businesses are struggling to access the U.S. dollar. The organization is calling for a
00:35transparent and equitable foreign exchange policy that prioritizes productive sectors,
00:42local enterprises, and export-generating businesses. Chief Strategic Officer Angie Jairam pointed out that
00:50while there are many foreign franchises operating in TNT, quote, they were established before the
00:57national forex crunch, end quote. She said, quote, we are just concerned about the need for more forex
01:05when established franchises and local suppliers are having problems securing U.S. to pay their
01:13foreign suppliers, end quote. Charan added, quote, as one of our member chambers representing businesses
01:21in communities that generate forex also pointed out, even sectors that are expected to generate foreign
01:28exchange have concerns about creating additional dependence on our limited U.S. dollar reserves to
01:35support franchise fees, royalties, and other recurring overseas payments, end quote. He said the issue is much
01:44larger than the brands themselves. Charan said, quote, it is about ensuring that TNT's scarce foreign
01:52exchange is managed strategically and fairly in the best long-term interest of our economy, end quote.
02:01The Greater San Fernando Chamber of Commerce shared similar concerns with President Kiran Singh,
02:07saying the discussion should focus less on the brands themselves and more on the broader foreign exchange
02:15issue that continues to constrain economic activity. He says manufacturers, distributors, retailers,
02:23and service providers have all faced challenges obtaining foreign currency, leading to higher costs,
02:31supply chain disruptions, and reduced competitiveness. But while business groups
02:37are urging caution, economist Dr. Valmiki Arjun believes the overall economic impact will depend on how
02:45deeply the franchises integrate into the local economy. He says if the restaurants heavily rely on imported food
02:53and equipment while paying significant royalties abroad, the main benefit will be employment, tax revenue,
03:01and consumer choice. However, he says, wider and more lasting gains can be achieved if the businesses
03:10source products from local farmers, agro-processors, and manufacturers. He said, quote, even if food is purchased
03:19from local distributors or supermarket chains, many of those products are themselves imported. Reports suggest that
03:28franchises plan to source supplies through a local supermarket, but much of that inventory is imported,
03:36end quote. He is also recommending long-term purchasing agreements with farmers, incentives for local sourcing,
03:44and support to help suppliers meet international franchise standards. According to Arjun, the investment also
03:52signals confidence in T&T's hospitality sector. He expects the restaurant to create jobs for cooks,
03:59savers, managers, security personnel, and delivery workers. Chief Executive Officer of Premier Restaurant
04:07Holdings Limited, Vishnu Maharaj, who brought the international brands to T&T, said he does not view
04:16access to Forex as an immediate or foreseeable challenge for the operation. He said, quote,
04:24not at the moment. Our food supply is coming through Massey distribution. Massey has access to foreign
04:30exchange. Our main foreign exchange bill is for food supply, and that is coming through Massey, end quote.
04:39The Express contacted the Massey Group for comment on this arrangement, but there has been no response as yet.
04:46Vishwana Pogu, TV6 News.
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