Why you can't stay hungry in the UAE

Dubai - Quick-service restaurants catering to on-the-go lifestyle in country

The UAE is poised to see a spurt in growth of quick-service restaurants (QSRs) and industry experts have attributed this to the modern living lifestyle among residents who have acquired taste buds that fit the life-on-the-go trend.
It is not about how much but what you eat that matters and if it is healthy, given the criteria by diet-conscious customers.
The GCC food services market is set to grow at a compound annual growth rate (CAGR) of 6.8 per cent to reach $28 billion by 2020 and the UAE ranks first in per-capita spending on food in the GCC with $2,683 per person, according to a report by Al Masah Capital.
The report indicates that the food services sector has surfaced as one of the most promising sectors in the GCC and has been rapidly growing over the past decade on the back of a flourishing economy, booming tourism, favourable demographics, rising urbanisation and a sturdy rise in per-capita income.
The sector appeals to consumers across a broad income and cultural spectrum, including locals, expatriates and visiting tourists from all over the world. Over the past decade, this demand has been well supported by the entry of several international fast-food, casual dining and health food restaurants in the region.
Quick service restaurants (QSRs), popularly known as fast food, remained the largest segment, accounting for 58.2 per cent ($11.7 billion) of the GCC food services market in 2015, followed by full-service restaurants with a 31.5 per cent market share ($6.3 billion) and cafés and bakeries with 10.3 per cent ($2.1 billion).
The UAE's QSR segment is expected to reach over $4 billion at the end of 2017, with the number of outlets increasing to around 3,595. According to Euromonitor International, the number of transactions per order is expected to increase from $7.6 in 2012 to $8.5 in 2017, a CAGR growth of 3.5 per cent during the period.
Rafic Fakih, managing director and partner at McDonald's UAE, said: "We see 2017 as an opportunity to further grow our business and increase our footprint across the country and are on track to grow store count by 5-10 per cent by the end of 2017."
McDonald's has 154 branches across the UAE and its network surged by 10 per cent last year.
"2016 has been a busy year for McDonald's UAE across all areas of the business. We've seen a flat growth in 2016, while we expect growth to be in line with last year's trends. We have some fantastic initiatives in the pipeline, which we believe will be well-received by our customers. We have seen the adoption of technologies creating an always-on, on-demand, on-my-terms modern world with single-click access."
"In fact, we've seen our customers shift to easier and more user-friendly experiences by ordering through our McDonald's Delivery Service mobile app and other interactive technology systems such as self-ordering kiosks we've introduced in the branches. As such, digital platforms are proving to be an integral business enabler, yet not overtaking the traditional way of ordering [i.e. call centre and in-store front-counter ordering]."
Euromonitor has ranked the UAE amongst the top 20 countries in the world in the food service markets worldwide in 2015, and grew around 56.3 per cent at current prices between 2010 and 2015. Consumer food services in the UAE reached at Dh52,399 million ($14,266 million) in 2015 from Dh33,534 million ($9,130 million) in 2010, growing at 9.3 per cent CAGR during the period.
Saudi Arabia and the UAE, home to nearly 77 per cent of the overall GCC population in 2015, were the largest food consumption centres. The per-capita food consumption in the region averaged at 851.9kg in 2012, with Kuwait recording the highest levels, followed by Saudi Arabia and the UAE.
George Kunnappally, general manager at DLL Emirates Restaurants, said quick-service restaurants in the UAE are well-poised to continue dominating the market as consumers gravitate towards fast, quality and trendy concepts in the QSR and fast casual segment, primarily burger joints and other local/international concepts.
"The introduction of food trucks in the UAE, especially in Dubai, has opened up myriad of opportunities for brands to introduce their concepts to a new market, targeting both residents and tourists," he said.
"New developments in the UAE such as Last Exit is facilitating the growth of quick-service eateries combined with the convenience of a drive-through. We believe that the next few years will see the market dominated by QSRs and fast casuals and quite often one may not be able to see them apart," he added.
Major changes in work and lifestyles, as well as changes in consumption patterns, have led to an increase in the frequency of people eating outside their homes. Additionally, rising obesity rates and related lifestyle diseases coupled with growing health awareness and a developing taste for a Westernised diet, introduced by the increasing expatriate population, are bringing about a change in the region's dietary habits, creating demand for organic and international foods.
In line with the healthy-eating trend, food service operators are increasing their focus on locally sourced ingredients and are continuously developing innovative set-ups to make the art of food eating experience more appealing, the Al Masah report pointed out.
Cheryle Treanor, executive assistant to the chairman at Hotbrands International, said Hotbrands International operates 36 quick-service and casual dining restaurants within the UAE, with another 10 locations signed.
"We definitely feel that social media and digital marketing will play a dominant role going forward as more people start getting used to online ordering. Reflecting on 2016 and taking into consideration the present economic environment, we think that for us, 2017 is a year of consolidation of the present operations and building up the infrastructure for future growth plans," he said.
"We have been in the UAE for 25 years and always felt that despite the periodic highs and lows, the UAE will always remain our base to expand in the region. Our brands were all conceptualised for this part of the world and have proven to be replicable for other markets also and this is due to the diverse multicultural population within the UAE, that has helped us shape our brands to be internationally acceptable," Treanor concluded.
- sandhya@khaleejtimes.com