• 2 days ago
Executive Chairman and Group CEO of Brands For Less Group (BFL Group), Toufic Kreidieh, spoke to Tell Me Why podcast host Maria Botros about the difficulties of starting a new business and why entrepreneurs should remain resilient in the face of all challenges.

BFL Group is the story of 2 best friends who wanted to change their social and financial situation
Our plan was to build a business that will help us give back to society

BFL Group wanted to introduce the concept of 'off-price' channels in this part of the world

BFL Group has opened its first 19 stores in Saudi Arabia this year, and is planning to reach at least 77 stores in the country

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Transcript
00:00United Arab Emirates is my country, it's the country of my children.
00:05And it's not only for me. I tell people or entrepreneurs or fresh graduates from all
00:12around the world who want to pursue a dream. This is the land of opportunity. Forget what you hear
00:18about the US and here and there. This is the real land of opportunity today. You have
00:26the first class infrastructure. You have the most supportive rulers around the world,
00:35sitting and really dedicating their life and their time, how to serve people,
00:41how to serve the youth, how to serve entrepreneurs, how to serve businesses.
00:46So it's a new day and yet another episode of Tell Me Why. As we move along and bring you
00:58more topics on the show, we've tackled so many things so far. So we've done health and well-being,
01:05we've done social issues, we've done a bit of psychology on our show as well. And today,
01:12we're going to talk business. And today's episode is special because it's also the kickoff of a new
01:19series within our Tell Me Why podcast, which is Get to Know the CEO. And joining me today is
01:26Tawfiq Raydiyeh, who's the executive chairman and the group CEO of BFL Group, also known as
01:33Brands for Less Group. How are you? I'm good. Thank you, Maria, for hosting me. It's a great
01:38pleasure to be with you here today. And I think you're one of the first people who spells my name
01:46correctly from the first thing. Really? Okay, well, that's good. Yeah, that's a really good start for
01:51us. Awesome. So Tawfiq, we've seen you on social media. You have such a fun side. You have a
01:58wonderful smile. You have, you know, I want to say this at the very beginning of the show, because
02:05this is not paid. I was not paid to say this. But having gone to your office twice, just twice,
02:12I could tell that your employees and the people in the building are all working towards the same
02:19goal. That is so rare to find where you feel like the employees in one office are like one big
02:26family. They have an understanding. They're in sync. They're actually happy, genuinely happy
02:32to be there. And I think that's a reflection of your management. And we see that on social media.
02:38And look at that smile, that bright smile. Thank you. Thank you. That must change people's lives
02:44and change people's days and your employees days. So honestly, props. And I applaud you for that.
02:51Thank you so much. And this is not paid. I am saying this because I really appreciate it.
02:58Massively appreciated it. And I could tell from just going two times. Thank you. People's feedback,
03:05people, the way people feel, the way people greet you. It's a true reflection of your personality
03:10and your management style. So we've seen your fun side. We know that you are the group CEO of BFL.
03:17And you know, you're the brains behind it. Basically, we want to take a step back a little.
03:23We want to get to know you first. So this is something that I don't think you've done before.
03:28We've done on different occasions, in small parts, but you know, you're more than welcome to ask
03:35whatever you like. Okay, so we're going to start from the very beginning. Tell us about your
03:40childhood. Tell us about growing up. Like, where did you grow up? Tell us about your childhood,
03:44where you grew up, that kind of thing. Okay, I just want to comment on the introduction that
03:50you have made. Yes. Thank you very much. I'm really flattered. And, you know, it's not me and
03:58my vision. And it's, it's a collective effort that's being put by each and every individual
04:05in this company. We have tried to create this culture. We call it family. And at the end of
04:13the day, we treat people as part of the family. We incentivize our people, whereby once at the end
04:22of the year, all targets have been met. You know, everyone is sharing the fruits of the success.
04:29We always try to remind our people or new joiners that they are not only joining a company,
04:38they are joining a family. And at the end of the day, we are all on the same boat. We are one one
04:44team looking for victory. And the victory is not an individual victory. It's a group victory.
04:51Precisely. And that's that was beautifully put. Thank you. And and that also, I mean, in a way,
04:57it comes full circle. So it's kind of like the chicken or the egg. So what you're doing is feeding
05:02into that and then the people also feel like a family. So then they're giving back and so on and
05:06so forth. And that's how it keeps going. And regarding the smile, everything in Brands4Less
05:12is about the smile. You will see it reflected in the logo. You will see it reflected in our slogan.
05:19That's a smile you just paid less. You will see it on the on the outfits of the employees. You
05:28will see it everywhere you go. You know, at the end of the day, there is a message behind it.
05:34We want happy customers coming out after going through a shopping experience that is unique.
05:42At the same time, going out, believing and getting convinced that they are happy because they went
05:50through a smart shopping. And they have saved money to buy branded products. That's amazing.
05:57So they have a sense of achievement as they leave, which also it is a treasure hunt, you know,
06:03by nature. We are treasure hunters. We are hunters by nature. You know, we used to fetch food
06:09since the day we came to this planet. So today we fetch and we hunt. And by nature, we are hunters.
06:17So creating this treasure hunt experience was really going with the nature of a human being.
06:24And we are there to really feed this hunt. That's beautiful. Thank you. Thank you for that.
06:30OK, so let's dive into your childhood then. Tell us about yourself. Where did you grow up and how
06:36is your childhood like? I'm I'm a very simple person who was born in Beirut, Lebanon in the
06:44year of 1971, was a little bit unlucky in the view of others, whereby a child that was born.
06:54He was four years old and the country went into a civil war. I was a little bit unfortunate during
07:03my childhood. We didn't have money at all. But, you know, for me, education was a very important
07:10thing. And I pursued my education to the last, finishing my school and then going to university.
07:17I had to start working since I was a child because of my family situation. You know,
07:23all of these inconveniences or misfortune that people look at it today is somehow a very lucky
07:34thing to happen to people to shape their their personality, to create this strength inside you,
07:42to create this perseverance of changing facts and changing your life in the future.
07:49Of course. And do you feel like that contributed to your vision and to maybe the concept that you
07:55came up with? Do you feel like that was that factored in to your business idea that you made?
08:02You know, the business idea, the first thing came to the business idea was how we can me and my
08:08partner, Yasser Baidoun. By the way, Yasser Baidoun is my best friend. He's my partner. He's
08:13my brother. He's my soulmate. He's everything. And we started this business together. We grew
08:19this business together and we are there to maintain this friendship. And today people think BFL is
08:29only brands for less. Actually, for me and him, it's best friends for life. And this is the
08:36abbreviation of BFL. And which is something I say for the first time, maybe. Amazing. Yes. And
08:43it's a story of two best friends that wanted to change their social, their financial situation
08:56and to really create something out of nothing. And our plan was in the future is whatever we're
09:05going to make, we're going to give back to the society and we're going to help the community
09:10around us. And that's what has took place with time. So at the beginning, going back to the idea
09:18of the business, the first box to be ticked was what business can we start with the minimum
09:26investment possible? Me and him, we were just fresh graduates. We were employees for different
09:33type of companies in different countries. And at the beginning, we said how much we can save
09:41on the side. And the money that we had saved was only $10,000 at that time. And we had to go
09:49and start our first store back in 1996 in Beirut, in an underground parking with $10,000.
09:57This was the start. Wow. Wow. And how did you put it together? I mean,
10:03you know, the idea, of course, we did not reinvent the wheel. This business was already existing in
10:10the United States. During one of our visits to the United States, we saw the concept there.
10:16We really said, you know, this is really missing in our part of the world. Let's take this idea
10:23and bring it to our part of the world and introduce this off-price, as we call it,
10:28off-price channel. The concept of outlets and that kind of thing. It's a little bit,
10:33it's more of off-price. You know, usually an outlet is more of a certain brand or certain
10:39representative of brands trying to clear out what is remaining in their stock. Off-price is
10:46a company or a retail concept that is dedicated and geared into sourcing merchandise to sell it
10:53at discounted prices. Okay. That's very important. Thank you for clarifying that,
10:58because I think people don't know the difference. No, people don't know the difference. People
11:01think that, you know, an off-price channel is outlet. It's not an outlet. Exactly. Outlet is
11:07when you are in regular retail and you need, and where the name comes, an outlet for you to be able
11:13to get rid of the excess merchandise that you have. Okay. Off-price is more geared into going
11:20and collecting whatever is remaining or to remain. Even we commit on things for the future that,
11:29you know, we go and sign contracts. Okay, whatever is going to stay there at your shelves, you're
11:34going to pick up everything and we're going to liquidate it and we're going to buy it at this
11:38price from today and we sign contracts for the future. So going back to starting off in the
11:44garage with $10,000 only, how did you do that? So how did you bring the merchandise? Did you
11:51actually travel? Like, was it as simple as carrying it in our suitcases and trying to bring it back?
11:55Or did you have like a plan in place? How did it start? At the beginning, when you start and you
12:00have your limited resources, you know, things are done a little bit haphazardly at the beginning.
12:06And, you know, it's our journey in business life is learning every single day new things.
12:13And we keep learning until today and we'll keep learning until the last day in our life on this
12:19planet. So, and especially, you know, at the beginning, communication was much more difficult.
12:28Travel was much more complicated. I remember my first trip to the States looking for supplier
12:35was there was no Google Maps. I had to have a real physical map.
12:43It took me, I was going from New York to Philadelphia for a meeting. It took me literally
12:49two days to reach this warehouse of the supplier. And, you know, it was much more difficult at the
12:54beginning. So we started, of course, we started with buying from small quantities with wholesalers,
13:01sacrificing more on the profit margin, just for us to be able to put our hand on the product
13:07and to build our reputation as a destination. And it was a difficult journey, but beautiful,
13:13difficult journey, you know, especially when you look back today and we see what we have really
13:20accomplished in terms of progress, in terms of A to Z. I can talk for hours about it, but,
13:28you know, I'm going to keep it short. You know, today,
13:34the start is very important. You have to start with the resources that you have in your hand,
13:40which were not much. So you start, we started with wholesale, wholesalers at the beginning.
13:46And, you know, you grow with time and you build more reputation, you build more capital.
13:51The most important thing is whatever you make from the business, you put it back to business.
13:56In the business, right. It feeds into it so that you help it grow. It's sort of like a baby. You
14:00keep giving it until it grows into what you aspire it to be. Okay. So you said something
14:06interesting about BFL standing for best friends for life or, yeah, right. Best friends for life.
14:13How did you manage that? That is a tough equation. That on its own is a success story. Other than the
14:19fact that the business grew, they always, there's a saying in Arabic, they say the person that you
14:24love do not like sign a partnership with or like get into, like get into family matters with. It's
14:33like a saying, it's like a colloquial saying. But how did you make that happen? That is very tough.
14:38To be very frank with you, friendship was not a result of the business, but business was a result
14:45of the friendship. So the issue is that sometimes, you know, at the end of the day, there is luck.
14:53And sometimes you get lucky with the closest people to you. And sometimes you get unlucky
14:58with the closest people to you. Exactly. And the character between me and my partner
15:03is extremely complimentary, whereby whatever is missing in me, he compliments and vice versa.
15:11So the strength that was really produced by this friendship was unbreakable in terms of,
15:19you know, executing our plans and putting our targets and reaching our targets. Right. So if
15:25you have a winning horse, you stick to it. Of course. And he sticks to me and I stick to him.
15:31And, you know, we enjoy every single day together. Even my kids, they tell me, Dad,
15:35you are so lucky you get to go and spend the whole day working with your best friend,
15:43which is something for them. This is something very cool. Of course. Yeah, of course. And it
15:47doesn't always work, as we mentioned. Sometimes it becomes a failed equation. And to be honest,
15:52that is a success story on its own. So I applaud you again for that, because you have to go into
16:00a business with the same vision. I think that's also another thing. Do you feel that that's the
16:05case that sometimes partnerships fail because each person has a different vision, they have a different
16:12goal? So maybe you guys were aligned? Or do you feel like, no, it was just we complemented each
16:18other, we knew what we were doing. We share common values. And I think this is the most important
16:25thing. Okay. And we share common ethics. And the rest is small details. Okay. Even the business
16:33plan, even the type of business, even whatever you want to put as option, possibility, etc.
16:42It's detail. Okay. Once you are synchronized on these two things, you're unbreakable.
16:50Precisely. Okay. Going back to your kids, because you mentioned your kids. How many kids do you have?
16:56I have four. Amazing. Two boys, two girls. That's beautiful. That's actually nice. It's even.
17:03Tell me, what in your childhood did you want to avoid with your kids? And what did you want to
17:11achieve with your kids and keep? So let's say there were certain values growing up that you
17:16absolutely loved, and you were thankful to have that you wanted to pass on to your kids. And what
17:21were certain things that you wanted to maybe avoid doing with your kids or avoid from happening to
17:29your kids? You know, in my childhood, because of the difficult situation that I've been through,
17:35on the country level, and on the family level, I had a lot of insecurities on all levels. So the
17:44first thing that I planned for my children is to really, at that time, my objective was
17:52to delete the insecurities in their life. Today, things start changing. You don't want
18:00the over-security to take effect. If you really care about your children, you have to keep
18:07a very small insecurity level in terms of, I'm talking about financial. I'm not talking about
18:15love, emotions. I'm not talking about these things. I'm talking about financials. For you
18:19to make sure that they will stand on their feet, that they will look into life, how life it is,
18:27and not only from their angle, and look to other people, and look around them, and know that they
18:34are there for a reason. There is a purpose for us to be existing here. It's not only us. It's
18:41our community. It's our society. It's the people who are less fortunate. And I always try to remind
18:48them that we started from scratch. We started from zero. Always keep this in their mind.
18:54Yes. Amazing. Okay. So, starting from scratch, starting from zero, back to the business.
19:01Can you tell us, after Lebanon, what happened next?
19:04You know, my partner stayed in Lebanon. Actually, it's a little bit complicated because
19:11I graduated. I went the first year to Saudi Arabia. My partner was still in university.
19:17I went to Saudi Arabia for one year, and then I moved to the UAE. And when I say I moved,
19:23it's all employment, employment, employment, different employment.
19:25Of course. Yeah.
19:26And he graduated in Beirut, started working in Beirut. And a company that was here took me as
19:32a general manager for Lebanon. And so, I was between Dubai and Lebanon. So, I went to Lebanon.
19:39And we started the first store in 1996 on the side. It was not a full-time thing.
19:45Right.
19:45So, we started on the side, underground parking. And in the year 2000, I was moved back by the
19:52same company to Dubai, whereby I resigned. Actually, I took a loan, personal loan from HSBC
20:00of $40,000, which is $150,000, put my resignation, and went and opened the first store, all in.
20:10Wow.
20:10My partner was in Beirut. We had, at that time, three small branches there.
20:15I started the first store here.
20:17Okay.
20:19Where was it?
20:20It was in Deir al-Bakhit.
20:22It was a 90-square-meter store.
20:25Wow.
20:26Wow. Fantastic. And then, after that, how did you start expanding?
20:32You know, it was very difficult. I remember it took me one year to hire the first employee.
20:37So, I used to clean the store. I used to do the cashier. I used to go to the warehouse.
20:40I used to prepare everything by myself. It was a one-man show.
20:44And then, one year after that, I was very happy to hire the first employee.
20:52So, she used to clean the store. She used to do some sales, et cetera.
20:56And, you know, always think of reinvesting everything back to the business.
21:02Right.
21:03So, you know, I had to go through difficult times at the beginning,
21:06because for you to be able to achieve that,
21:09you have to go through a real strong frugality process.
21:16And, you know, I remember very well I was
21:20not able to achieve what today you hear on the social media of work-life balance.
21:26Oh, okay.
21:26Because it does not exist for startups. Trust me.
21:29Of course.
21:31So, I was dedicating most of my time to work.
21:36Even I remember my first two children getting born and growing,
21:41and I had zero time to spend with them.
21:44So, if you reinvest all your time, you reinvest all your money back into your business,
21:52you concentrate, you keep focused, perseverance,
21:56I think at the end of the day, growth will come, will follow.
22:01As a byproduct.
22:03So, in terms of difficulties and challenges, what were some of those that you faced?
22:08Did people put you down?
22:09Did people tell you, like, this will never succeed?
22:12Or did you get discouragement from people?
22:15Was that something you faced?
22:17Of course, of course.
22:18Because, you know, I was a university graduate.
22:21It's not like I had no education.
22:24Right.
22:25So, at that time, or most of the countries, you used to finish your university
22:32and then you start applying for jobs.
22:35And there was, Dubai has been a very good place to,
22:41or a destination for job seekers who are fresh graduates, even at that time.
22:47Of course, yes.
22:47So, of course, you know, I have all my friends who studied with me in the same university,
22:55going and landing good jobs with multinationals, etc.
22:59And, you know, me going and opening this 90 square meter store,
23:03cleaning the store and sitting behind the cash register
23:06and having no enough capital to really foresee what's going to happen next year.
23:12So, of course, lots of people come, discourage you.
23:15But, you know, if you are focused, at the end of the day,
23:19you know, today, I give you an example.
23:22Today, I'm in my 50s.
23:24You know, even people who took the employment and became high management,
23:31today, you see them not very comfortable in their life because there's a lot of worry.
23:36What's going to happen?
23:37They're going to replace me.
23:39They're going to get someone cheaper, etc.
23:41Thanks God, when you go the path of being an entrepreneur and doing your own thing,
23:47you know, it's at the beginning, it's so much, you're so much under pressure.
23:52But later on, when you get a little bit weaker in terms of physically,
23:56because, you know, we're human beings.
23:57Of course.
23:58And you really don't need the pressure at this age.
24:02At that time, you are, you have the upper hand.
24:05Okay.
24:06So, going back to the Dara shop, does it still exist?
24:11We try to keep it as long as possible.
24:13Okay.
24:15We, I shut down the store when we had no option to keep it open because what happened,
24:22you know, Dubai keeps on expanding and changing in terms of infrastructure.
24:27And the store had zero chance of parking around it.
24:33So, it was more of a suffering for the customer to come.
24:37And we had to close it, I think, like seven, eight years ago.
24:41It's lovely that you mentioned the UAE and, you know, forever developing and always,
24:46you know, seeking to be better and to offer better services to entrepreneurs,
24:50to businessmen, to employees, to residents, to everyone.
24:54Tell me about the UAE and how it contributed to your success.
24:57You know, United Arab Emirates is my country, is the country of my children.
25:04And it's not only for me.
25:06I tell people or entrepreneurs or fresh graduates from all around the world who want to pursue a
25:12dream, this is the land of opportunity.
25:16Forget what you hear about the U.S. and here and there.
25:20This is the real land of opportunity today.
25:23You have the first class infrastructure.
25:27You have the most supportive rulers around the world sitting and really
25:34dedicating their life and their time how to serve people, how to serve the youth,
25:41how to serve entrepreneurs, how to serve businesses.
25:45Everything is built around businesses.
25:47Everything is built around success.
25:50You are here.
25:51The opportunity that you have around you, the networking is really first class.
25:59Everything is first class.
26:00So I would encourage people who really want to pursue a dream, this is the best place
26:07to come and start your dream.
26:09I couldn't agree more.
26:10And I think we spoke about this when we met the other day and how, you know, I have so
26:14many members of my family who've started businesses here.
26:17And it is the hub.
26:18It does nurture these businessmen who want to achieve their dreams.
26:26And not only this, it became a home.
26:28It became home.
26:28Exactly.
26:29And this was the transformation of this beautiful country into moving from only a business contract
26:40place that you go serve two years or three years and you leave into really becoming a
26:46home.
26:46It's today one of the safest places on the globe.
26:50It's one of the most modern infrastructure on the globe.
26:54And it's really amazing to live in this country.
27:00I don't know about you.
27:01I'm sure you feel the same way because we did discuss this, but I never felt like an
27:05outsider.
27:06I never felt like.
27:07You will never ever feel.
27:09And I never will.
27:10And I know that for a fact.
27:11I was practically born and raised here.
27:13And that's the one thing I tell everyone, people who haven't been to Dubai or ask me
27:18about Dubai.
27:18I never felt like it was not my home.
27:20So definitely.
27:22OK, Tawfiq, you the other day when we met, you spoke to me about Saudi.
27:27Yeah.
27:28Tell us a bit more about that.
27:29That's an exciting step for BFL.
27:30You know, Saudi Arabia is, of course, our neighbor and Saudi Arabia is one of the largest
27:38markets in terms of in the GC, in terms of population and size.
27:43Right.
27:44And Saudi Arabia is really witnessing a huge change in terms of infrastructure, in terms
27:51of business environment, in terms of rules, regulation to facilitate imports, etc.
28:00And of course, after UAE, the best place to move into your expansion is Saudi Arabia,
28:10because the country is so big whereby you can really dedicate a separate logistics center
28:19that you can put there to cater for the growth.
28:22So lately, we have entered all of the GC countries.
28:27And Saudi Arabia was the biggest move, of course, because it will take the maximum number
28:33of stores in terms of in comparison.
28:36We already established in Kuwait, we established in Qatar, we established in Bahrain now.
28:40We're opening the first store in Bahrain, Oman.
28:44And, of course, our UAE, which is our headquarters.
28:51So Saudi is our focus now.
28:54We started less than a year ago.
28:58We opened our first 19 stores now.
29:02We will finish this year by 27 stores.
29:07And we're planning at least 77 stores in Saudi Arabia in the coming few years.
29:14Fantastic. All the best.
29:16I just returned from Saudi Arabia.
29:18We just signed a big deal.
29:22We just acquired a land in Saudi Arabia to build our fully automated warehouses
29:33on 38,500 square meter land.
29:36So it's going to be like a state-of-the-art facility.
29:41So by fully automated, you mean like robots and computerized?
29:45Yes. Whatever we have made here in UAE, we're going to copy another facility in Saudi Arabia.
29:52Nice. Fantastic.
29:54OK, so you spoke about expansion in the GCC.
29:56But do you have any plans for the rest of the Arab world beyond that?
30:00Of course.
30:02But the only issue here in the different countries, you have different rules,
30:08different regulations, different laws.
30:10So we try to always, we have an international department that's sitting
30:15and trying to crack the codes of the different countries.
30:19Of course, our objective is to go from, we went from local to regional.
30:25And now we're going to go from regional to global player.
30:28Amazing. Amazing.
30:30OK, I wanted you to paint the picture that you painted to me when we sat down.
30:38When you were talking about the UAE being home, why is it home to you?
30:43You told me about your family.
30:44It's the country, tell you something.
30:48All my family, all the members of the family are living now in the United Arab Emirates.
30:53I told you we meet on Sunday's lunch.
30:55Yeah.
30:56We are around 19 people.
30:5719 people, sisters, brothers, nieces, nephews, grandchildren, et cetera.
31:04And, you know, when you're, the main connection to you, to each and every person is mother.
31:10And my mother, she moved herself to Dubai.
31:14And, you know, and my kids were born in Dubai.
31:18So at the end of the day, this is my country, you know.
31:20Your roots are basically here.
31:22My roots are Dubai now.
31:23Now, OK, my last question, and then I will let you off the hook.
31:27I love that you're still smiling, even though I've asked you so many questions.
31:31And what's next for Tawfiq, and what's next for BFL?
31:36Next for BFL, I just told you we want to move from regional to global.
31:44What's next for Tawfiq is to really make sure that, and to cement the management team,
31:52who are today are spearheading the business, to be very frank with you.
31:56We are only there as partners to really just give them a little bit of guidance, advice,
32:02et cetera.
32:03But we let them do the whole management.
32:07So I'm very proud of the management team that has been created in BFL.
32:12And my target today is to cement this team, to give them as much as resources that I can
32:22provide them, to really make them achieve the objectives that they are looking for.
32:28And a little bit step back from day-to-day management and really concentrate on giving
32:36back to society.
32:37This is philanthropy is one of the basic objectives that we have created this business for.
32:46And now it's time to really give more time to these activities.
32:50That's beautiful.
32:51Is there anything else you'd like to add on anything we spoke about?
32:55Thank you so much.
32:56I really, I want to give advice to the young entrepreneurs.
33:01Please believe in what you are doing.
33:04If it makes sense and you are convinced that it makes sense, I mean, from a feasibility
33:09point of view, don't let anything, anyone to put you down.
33:15Just perseverance, perseverance, perseverance.

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