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Dubai: The economic downturn has been tough on fancy restaurants and gourmet food worldwide as consumers tighten their belts, but the slowing economy has not heavily affected some of Dubai's fast-food chains as much as some would want to believe.
The days of doom and gloom have indeed forced consumers to scale down on eating out, but fast-food chains still remain popular among those determined to continue doing so. Companies operating major fast-food brands in the UAE are also eager to expand despite the slowdown.
"Consumers have cut down outdoor trips and hence they are eating at home more often. But we feel that when they do go out, they would be going more to fast food than fine dining. Hence, more impact would be felt on fine dining and to a lesser extent on fast foods," said Piyush Mathur, the regional managing director of market research firm The Nielsen Company.
Officials from at least two major fast-food brands in the UAE, Dunkin' Donuts and McDonald's, said their sales remained unaffected by the downturn. They said cheap prices, accessibility and quick service helped retain customers.
"We haven't felt any significant change between our takeaway or dine-in figures in our outlets. The sales have been steady so far and we are expecting (a) 10 per cent sales increase during the year," said David Rodgers, the general manager of Dunkin' Donuts.
The company, which operates 50 stores in the UAE, is planning to open 16 more outlets nationwide - four in Ajman, three in Ras Al Khaimah, five in Dubai, two in Abu Dhabi, one in Sharjah and one in Al Ain.
A spokesperson for McDonald's said the company was still maintaining steady growth and was even planning to open eight more outlets in Dubai, Abu Dhabi, Ajman and Al Ain this year.
Since the start of 2009, the company opened two new outlets in Dubai Marina Mall and Safeer Mall in Ras Al Khaimah.
"Since the opening of the first restaurant in Dubai in 1994, McDonald's was positioned (as a) locally owned and (family-operated) restaurant focusing on quality, (good) service, cleanliness and value. These four pillars are the major drivers that positioned McDonald's at the forefront of QSR [quick service restaurant] brands in the UAE," the spokesperson said.
In its consumer confidence survey released last November, The Nielsen Company found that 41 per cent of UAE consumers were already scrimping on take-away meals to stay within budget.
Nasir Iqbal, an expatriate from Pakistan, said the current slowdown had forced him to make changes to protect his wallet.
"I have made extensive changes. To save on costs, I have started cooking at home, which is cheaper, healthier and drastically reduced socialising. In the current situation, I order a meal once a week compared to every day before the economic downturn," Iqbal said.
Rose Manaog, an expatriate from the Philippines, said she was sticking to her frugal lifestyle, but added that her passion for fast food would not take a back seat.
"I have always been frugal. I take home-cooked meals to work to save money. But when I eat out, I only go to fast-food joints because they're affordable," Manaog said.
However, the sustained popularity of fast food over gourmet meals does not guarantee that everything is rosy in the QSR business.
One manager at a fast-food joint - who asked not to be named - said diners had started to thin out a bit.
"Fast food is still the number once choice for many expatriates... but since we've witnessed a lot of jobless people leaving the country, naturally, our sales have slowed down somewhat. But the impact isn't that big," he said.
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