In the zone
by ArabianBusiness.com staff writer on Saturday, 01 September 2007
In April, the company reported an 11% rise in global first quarter sales to US $5.5 billion, and a 22% increase in net profits to US $762.4 million, derived predominantly from surging sales in Europe and strong demands for its new menus in the US.
Abu Dhabi has emerged of late as the strongest growth market after Dubai, Fakih admits, because of the presence of "more local people with buying power."
Such comments from Fakih do not come loosely, but rather following intensive research of local demographics on a regular basis.
"We survey this market every three months, with recent reports highlighting that families are eating much more than before."
He lauds the potential offered by a country where the hectic workforce is mostly on shifts, and where there has been a surge of interest in eating out among young people and couples.
Such research and development projects have indicated that the drive-thru format - present at 30% of restaurants - turns over turnover 40% higher than other formats.
The number of annual openings has doubled, and Fakih plans four more openings by the end of this year, in Abu Dhabi, Ras Al Khaimah, Dubai and Sharjah.
"If growth continues, we are likely to open more than 10 restaurants annually in the UAE, so my plan is to grow where people go and continue to inform customers of our quality," he pledges adamantly.
"We attempt to have a presence in every mall, and I have had discussions about Mall of Arabia, however sales in that sector is very seasonal, with most growth potential at weekends, but that's changing."
McDonald's has marked its widespread presence with outlets in malls including Abu Dhabi's Al Wahda, Ajman City Centre, Dubai's Al Khaleej Centre, and Al Manar in Ras Al Khaimah.
In a bid to ensure he could take responsibility for the financial and operational aspects of his empire, Fakih was required to gain a firm grasp of the entire business process.
"I worked at McDonald's in Singapore as crew for a year, which involved flipping burgers, cleaning kitchens and attending classes."
He concurs that Emiratisation has not proved a success for the chain, as poaching has arisen as an obstacle.
‘We have employed local staff in management roles, however local people are not attracted to working in the kitchens, and those we train in managerial roles are often approached by other companies, so they don't stay."
McDonald's Middle East Development Company (MMDEC) has now given its support to the impending opening of a Hamburger University in Dubai, designed to develop skills among its managers. Taking place three times per year for a week duration, the program is yet another important feat for the ambitious franchisee.
If McDonald's UAE's new ‘zoning' tactic earns a firm following from existing and new customers, then Fakih's brainchild will align with its modern thinking in permaculture design, by ensuring its elements are correctly placed, and that progress across the country remains on the fast track.
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