Market Research

Essay by hamidtntA+, April 2010

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Answer 1:

The Middle East's food service industry is still attracting more international names from the quick service restaurants (QSR) sector, particularly in the Dubai because of its strong economic growth and increasing population.

The total value of spending in Dubai's food industry is estimated at more than Dhs6.47bn (in wholesale prices) for 2006, with 11% growth in the food services market. The most important contributing factors are the growing population, relatively high purchasing power, and the significant rise in the number of tourists. Studies indicate that the total spending by tourists in the Dubai will reach $7.6bn in 2009 and that Dubai alone is targeting 10 million tourists in 2010. Demographic factors and lifestyles also play a key role in this high percentage of spending on food services, especially considering the huge numbers of singles, mainly males, and their long working hours which tend to encourage consumption of ready-to-eat meals.

Reports on franchising in the Gulf region show that the fast-food industry in the Dubai is still enjoying strong double digit growth year on year for the last five years, and the local quick service restaurant business currently stand at over $1bn. Industry experts expect that the market will grow even further and that there's still room for new international players, despite the Dubai's comparatively large QSR market for its size. director of marketing and business development for First Food Services L.L.C., the BURGER KING franchisee in the UAE, believes that even though the local markets include many of the most well known names in the QSR sector, many local and regional companies are still looking for new franchises to introduce to the Dubai. "From our long experience in this field and our own market studies, we can see that demand is nowhere near saturation," he says. "This implies...