FT Schools - Barrafina case study
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In the second of many resources that we will develop with the Financial Times, this resource offers strategies and materials for integrating the Financial Times article How high-end restaurants went global into your IB Business Management classroom, with specific focus on Barrafina.
The FT Schools article can be found here.
Barrafina, Soho, London
Barrafina is a British-based tapas restaurant group known for its award-winning small plates. The business is expanding internationally. Its first overseas location is set to open in Dubai’s International Financial Centre (DIFC), a hub for premium dining and business clientele. Barrafina is co-owned by Sam Hart and managed by Anna Watkins.
Barrafina’s entry into Dubai occurs amid a surge in global restaurant expansion, with brands such as Zuma, Nobu, and Cipriani all using external growth methods like franchising and joint ventures across major cities such as London, New York, Singapore, and Mykonos. Dubai has become a magnet for such business ventures due to its strong luxury economy, supportive investment culture, and a thriving hospitality sector.
Unlike its competitors, Barrafina plans a smaller, 50-seat venue focusing on authentic Spanish tapas, contrasting with the 300 to 400 seat luxury restaurants typical of the city in the UAE. Barrafina's franchise deal allows the company to retain control over key management decisions, ensuring consistency and protecting its brand reputation.
Barrafina’s international expansion reflects broader changes in consumer behaviour, with real estate developers increasingly relying on luxury restaurants to enhance the prestige of new property developments. Barrafina must now balance the opportunity of expanding globally with the challenges of maintaining brand authenticity, operational control, and cultural adaptation. This includes modifying its menu to meet Dubai’s regulations, such as all removing pork dishes. However, the financial rewards are attractive, with annual sales turnover targets of around $40m.
Connections to the IB Business Management syllabus
Here are some examples of direct links between the FT article and content in the IB syllabus:
Unit 1: Introduction to Business Management
- Unit 1.3 - Organizational objectives
- Unit 1.4 - Stakeholders
- Unit 1.5 - Growth and evolution, external growth, franchising, and joint ventures.
Unit 2 – Human Resource Management
- Unit 2.4 - Recruitment and training
Unit 3: Finance and Accounts
- Unit 3.2 - Sources of finance
- Unit 3.3 - Costs and revenues
- Unit 3.8 - Investment appraisal decisions
- Unit 3.9 - Budgeting (HL only)
Unit 4 – Marketing
- Unit 4.1 - Market growth
- Unit 4.2 - Segmentation, target markets, and positioning
- Unit 4.5 - Aspects of branding
Unit 5 – Operations Management
- Unit 5.2 - Operations methods
- Unit 5.3 - Features of quality assurance (HL only)
- Unit 5.4 - Location (The reasons for a specific location of production)
- Unit 5.6 - Production planning (HL only)
Classroom activities and discussion points
Activity 1 - Class debate: “Global restaurant chains destroy culinary authenticity.”
Objective:
To develop critical thinking about business growth, ethics, and cultural impacts of business strategy.
Activity:
- Divide students into two groups: for and against the motion.
- One group argues that multinational chains like Barrafina homogenize food culture and damage local businesses.
- The other argues that global expansion spreads cultural appreciation and creates benefits such as employment.
After 15 minutes of preparation, hold a structured class debate with timed arguments and reflections.
Activity 2 - Business plans: Doing better
Objective:
To understand different business strategies for international growth and the challenges of maintaining brand consistency.
Activity:
- Students reach the FT article about Barrafina and dominant competitors like Zuma and Nobu, in the context of their international expansions.
- In groups, students use this article and other online sources to identify:
- Different types of growth (e.g., franchising, joint ventures, and direct ownership)
- Quality control measures (e.g., ensuring consistent service and quality across franchises)
- Adaptation to local markets such as the UAE
- Branding strategy
- Meeting the needs of different customers.
Groups present their findings visually, using poster or slide decks.
Extension tasks:
Students propose a country Barrafina could expand to next and justify their recommendations using a STEEPLE analysis framework.
Activity 3 - Role Play: Pitching Barrafina to investors in Dubai
Objective:
To apply knowledge of business management to a simulated professional context.
Activity:
- Students form small “executive teams” representing Barrafina board of directors.
- Each team prepares a short sales pitch covering:
- Business objectives for Barrafina Dubai
- Competitive advantages of locating in Dubai
- Market analysis and expected return on investment
- Risk management (including menu adaptation).
- Peers and/or the teacher act as investors (like business angels) and evaluate each presentation using four strands: knowledge, application, analysis, and evaluation.
Activity 4 - SWOT analysis
Objective:
To analyse Barrafina’s strategic position in the Dubai market using SWOT as an analytical tool.
Activity:
- In pairs or small groups, students complete a SWOT analysis for Barrafina’s Dubai business venture.
- Each group presents their top two strengths, weaknesses, opportunities, and threats for Barrafina operating in Dubai.
- Each group also presents their strategic recommendation for Barrafina’s expansion in Dubai.
- Social (demand for experiential and luxury dining)
- Legal (licensing and pork restrictions)
- Economic (luxury market growth)
- Ethics (profitability and ethical responsibility in global business expansion)
Exam Practice Question 1
| (a) | Define the term external growth methods. | [2 marks] |
| (b) | Explain two benefits to Barrafina of using a franchise model for its international expansion. | [4 marks] |
| (c) | In the context of SWOT analysis, explain two possible threats Barrafina faces when expanding into Dubai. |
|
Exam Practice Question 2
| (a) | Identify two challenges Barrafina may face when expanding into Dubai. | [2 marks] |
| (b) | Explain two factors that may have influenced Barrafina’s choice of Dubai for its international expansion. | [4 marks] |
| (c) | Explain how Barrafina’s small 50-seat venue could impact its business performance in Dubai. | [4 marks] |
The published article in FT Schools can be accessed here.
Answers
Exam Practice Question 1
(a) Define the term external growth methods. [2 marks]
(b) Explain two benefits to Barrafina of using a franchise model for its international expansion. [4 marks]
Possible benefits include an explanation of any two of the following:
- Lower financial risks – The franchisee provides the investment capital, which reduces Barrafina’s financial burden in Dubai.
- Faster international growth – Franchising allows Barrafina to expand globally more quickly using local partners.
- Local market expertise – Franchisees in Dubai understand the local culture and regulations (e.g., pork restrictions), thereby reducing operational challenges for Barrafina.
- Brand control – The franchise agreement allows Barrafina to retain decision-making control, ensuring consistent brand development and food quality.
- Accept any other relevant benefit written in the context of the case study.
Mark as a 2 + 2.
(c) In the context of SWOT analysis, explain two possible threats Barrafina faces when expanding into Dubai [4 marks]
Possible threats include an explanation of any two of the following:
- Strong competition – Established luxury brands like Zuma and Nobu dominate Dubai’s dining market.
- Cultural and regulatory challenges – Menu restrictions (e.g., pork prohibition) may limit Barrafina’s brand authenticity.
- Economic dependency on luxury spending – Economic downturns (recessions) or reduced tourism in Dubai and the UAE could lower customer sales for Barrafina.
- Operational risks – There could be difficulties in maintaining consistent quality standards across an international franchised Barrafina restaurants.
- Accept any other relevant threat explained in the context of the case study.
Mark as a 2 + 2.
Exam Practice Question 2
(a) Identify two challenges Barrafina may face when expanding into Dubai. [2 marks]
Possible challenges include any two of the following:
- Cultural adaptation and menu modifications.
- Managing operational control overseas in Dubai.
- Competing with established high-end brands in Dubai.
- Recruiting and training skilled staff (including franchisees) in a new, overseas market.
- Accept any other relevant challenge facing Barrafina.
Mark as a 1 + 1.
(b) Explain two factors that may have influenced Barrafina’s choice of Dubai for its international expansion. [4 marks]
Relevant factors include an explanation of any two of the following:
- Market growth opportunities - A thriving hospitality sector in Dubai, given its reputation for fine dining and luxury lifestyles, attracts high-spending consumers.
- Supportive investment climate – The supportive investment culture in Dubai offers attractive business conditions for international restaurant chains and franchisees.
- Luxury economy – Dubai’s wealthy clientele aligns with Barrafina’s premium brand positioning.
- Global brand exposure – Operating in Dubai enhances international recognition and prestige of the Barrafina brand.
- Accept any other relevant factor explained in the context of the case study.
Mark as a 2 + 2.
(c) Explain how Barrafina’s small 50-seat venue could impact its business performance in Dubai. [4 marks]
Possible areas for the explanation include:
- Enhanced exclusivity – A smaller venue creates a premium brand identity and a more intimate dining experience that may justify Barrafina's higher prices.
- Improved quality control – Running a smaller restaurant makes it easier for Barrafina to maintain service standards and brand authenticity.
- Reduced operating costs – Smaller retail space may lower Barrafina's rent and staffing costs in expensive locations like Dubai.
- Limited revenue potential – Fewer seats reduce Barrafina's total sales volume (due to the seating capacity) and may therefore constrain profits.
- Accept any other relevant impact (positive or negative) that is explained in the context of the case study.
Award [1 - 2 marks] for a response that shows limited understanding of the demands of the question.
Award [3 - 4 marks] for a response that shows good understanding of the demands of the question, similar to the points above. Accept answers that only consider positive or negative impacts.
Read our first collaborative piece with FT Schools, which focuses on Tony’s Chocolonely's, here.
Paul Hoang
FT Schools teacher advisor for IB Business Management
