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Iran sees 'battle of the brands' as US franchises look to enter

Bootlegs of American franchises in Iran may very well fall victim of the nuclear deal as Western companies consider expanding their businesses there.

A product showing the Raees Coffee logo is seen on the counter at a branch of the coffee chain in central Tehran February 5, 2011. In a country where there are no bars, as alcohol is banned, Tehran's Raees Coffee chain has proved popular since its first cafe opened in December 2001, offering both a modern environment, complete with wireless Internet access, and - a first in Iran - takeaway coffee. Many other coffee shops have sprung up in Iran's major cities where, until recently, tea was the beverage of ch
A product displaying the Raees Coffee logo is seen on a counter at a branch of the coffee chain in central Tehran, Feb. 5, 2011. — REUTERS/Morteza Nikoubazl

The line was around the block. When the Baskin-Robbins first opened on Valiasr Street in Tehran, you’d have to wait a good 30 minutes to get in the door, and even then, you might not get the flavor you wanted. Everything from the sign to the cups and signature pink spoon — not to mention all 31 flavors — were on point.

I had to know its secret. After all, it’s an American ice cream parlor in Iran, a country that hasn’t had direct relations with the United States for some 30 years. “It’s actually Italian gelato,” the manager said, grinning from ear to ear, when I visited the store in 2009.

The Tehran "Baskin-Robbins" was a bootleg American franchise, but, in my opinion, with better ice cream. Surprisingly, it wasn’t alone in emulating American fast food franchises. Over the past decade, everything from Burger King, Carl’s Jr., Chipotle, Domino’s Pizza, KFC, McDonald’s, Pizza Hut, Starbucks Coffee and Subway has found its way to the Islamic Republic of Iran in the same manner. Some of the fake franchises were exact replicas, while others had slight modifications, including the names. Burger King became Burger House, McDonald’s became Mash Donald’s, Pizza Hut became Pizza Hat, Subway became Subways and Starbucks became Raees Coffee. And in all, there was always a friendly reminder that these restaurants were in Iran: framed photos of Supreme Leaders Ayatollah Ruhollah Khomeini and Ayatollah Ali Khamenei and a sign telling women to respect their hijab.

In 2010, that "Baskin-Robbins" was nowhere to be found. Rumors circulated that it went under for financial reasons, while others pointed at a more likely culprit: corruption. But the truth was that Shirin Salamat, an attorney who advises on brand protection strategy, licensing and trademark enforcement, represented the real Baskin-Robbins while working at a law firm in Tehran and single-handedly closed all five Iranian shops for their client.

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