Casual dining trends unveiled

Consumers in the Middle East have no difficulty finding a suitable restaurant no matter what their taste or budget. Indeed, the variety of restaurants and cuisine types on offer compares very favourably with most western markets which often comes as a surprise to new visitors to the region. Fancy a burger from McDonald's or a coffee in Starbucks? No matter - it's all available, whether you're in Kuwait or Jeddah, Abu Dhabi or Doha.

According to market research company IMES, there has been huge growth in the number of quick service and casual dining restaurants in the countries comprising the Gulf Cooperation Council (Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar and Oman). The 10 largest restaurant chains alone operate more than 1900 restaurants across the GCC, and the sector is increasingly organised on a pan-regional basis.

Restaurants vary enormously on a number of levels. Fine dining restaurants serve high quality food in a formal setting with a high service level and high prices.

Casual dining restaurants serve moderately priced food in a casual atmosphere, and quick service restaurants emphasise speed of service and low cost.

While fine dining restaurants tend, in the main, to be stand-alone or one off in nature, quick service and casual dining restaurants lend themselves to replication-once a successful format has been developed it can be quickly replicated in other areas and countries.

One reason for the strong recent growth in restaurant numbers is the phenomenon of ‘westernisation of dietary preference, whereby as the economy of a country develops, a ‘westernisation' of its inhabitants' eating patterns tends to occur. As nations become wealthier, their inhabitants "progress" from a so-called "poor man's diet" with high levels of grain, fruit, and vegetables, to a diet with more fat and sugar.

The lifestyle changes that accompany economic development also herald a more frenetic pace of life which leads to an increased demand for convenience including eating out more.

As the grocery retail sector consolidates towards fewer larger retailers and fewer but larger stores, quick service and casual dining operators have more and more opportunities to open new outlets in the food courts of the new shopping malls. These malls provide new quick service and casual dining operators and expanding chains a low cost opportunity to test concepts or to extend their reach.

For example, Riyadh's Granada Centre, which opened in 2005 (with Carrefour as an anchor tenant), is home to some 33 restaurants in an extensive food court. Carrefour alone has established 20 hypermarkets in the GCC since 1995.

Other important drivers of demand for the industry include strong population growth (averaging 3.3% across the region), strong economic growth and rising personal incomes.

IMES estimates the GCC market for quick service and casual dining to be worth some US $2.1 billion in 2007 at consumer prices, or $56.30 per capita. This compares with an estimated $203 billion market for quick service alone (i.e. excluding casual dining) in the United States, the world's most developed fast food market, or $671 per capital.

Difference in per capita income levels compared to Western markets partly explains the relatively low level of development of the sector. While per capita GDP in countries such as Qatar and the UAE are comparable to the wealthiest Western countries, those of the region as a whole at $21,166 still compare unfavourably, despite the rapid growth in GDP recent years. Other reasons for the relatively low development of the quick service and casual dining sector include:

• Low development of tourism (except for UAE)

• The importance, although declining, of traditional family meals at home

• Women being unable to drive (Saudi Arabia only)

• Limited sales of alcohol Constraints on social mixing

• A concentration on evening dining