Friday, Jul 05, 2013

Dubai: The UAE is undergoing what appears to be a burger boom. With the recent opening of New Zealand’s BurgerFuel in Abu Dhabi and a few others in Dubai, including the US-based Elevation Burger, consumers in the UAE are hungry for Western burger brands.

There are over 150 burger outlets and more than 10 international burger brands in the UAE, along with several smaller locally based alternatives. And more are expected to enter the market due to “a global surge in comfort food”, says Daniel During, principal and managing director of Thomas Klein International.

“There are more fast-food chains than restaurants here,” he said.

HIGH DEMAND:

There are a number of factors fuelling the demand for burgers.

Among these is the country’s high disposable income, as well as the recovering economy, says Sana Toukan, research manager for the Middle East at Euromonitor International.

“The overall fast food market has seen substantial growth in recent years in the UAE. With one of the highest disposable income in the world, the UAE spells out the perfect spot for new burger chains to launch, especially as consumers become more sophisticated in their demands. This has led to a rise in demand for organic burgers and ‘healthier’ [options] and chains positioning themselves as more premium brands,” she said.

Meanwhile, Haisam Tarabay, managing director at Elevation Burger says the demand is driven by people’s lifestyle.

“I think people here like burgers because they are in a hurry. They want fast food. That’s why we do not have entertainment in our stores- people want to eat quickly and leave,” he said.

The trend toward burgers containing organic beef is evident as more premium brands offer them.

Among these are Elevation Burger and US-based Steak ‘n Shake, which expects to open its first UAE outlet in Dubai Mall in August.

The beef patties at Elevation Burger are healthier than other options in the market, says Tarabay.

It contains 85 per cent organic beef and 15 per cent fat, which disappears once the meat is on the grill, making it easily digested, he explains.

Unlike conventional beef, the organic alternative is free from antibiotics and growth hormones.

The fries too are healthy, since it is cooked in olive oil, he added.

Premium brands are offering consumers a healthy option which some say legacy brands are missing.

However, some legacy brands say they should not be labelled as strictly unhealthy.

“Our menu has plenty of healthy options, like salads and baked potatoes,” said Nabil Elkari, vice president of Wendy’s in the Middle East.

He said the burgers are “made fresh on the day” after the frozen meat is brought from the US.

WESTERN BRANDS:

According to During, western burger brands dominate the local market because investors prefer to bring brands from countries that have traditionally made burgers.

“The market is driven by investors, not customers. Investors will bring brands that are successful in their country to the UAE because they think it will work here. The Anglo-Saxon countries are known for fast food chains,” he said.

During said that customers do not eat at western burger outlets simply because they are western.

“People in Dubai go for a product and not where it’s from; they go for image-its reputation built here. If a brand has a good image, people will like it,” he explained.

He added that some consumers choose a brand based on its success in the country it is based in.

“But if you don’t know [about its international success], you will choose a brand as a result of word-of-mouth. You just assume it’s good,” he said. SATURATED MARKET:

In a saturated market, burger brands should differentiate themselves from their competitors, according to Colin Beaton, managing director at Limelight Creative Services, a boutique retail strategy and design firm in Dubai.

Some brands distinguish themselves with their menu, Toukan said.

“Some innovations are limited to toppings offering a variety of international flavours, others more towards the quality of the meat used in the burgers while many are attempting to distinguish themselves through the layout of the retail outlet itself,” she said.

Jinger Panganiban, marketing manager of the hospitality division at Saleh Bin Lahej Group, which operates Steak ‘n Shake in the UAE, says the brand distinguishes itself with its unique steak burgers.

They consist of cuts of steak piled on top of each other.

She says that although the market is saturated, the demand for burgers will remain over the coming years.

“Steak ‘n Shake will be a big hit in the market here. [Burger chains] will keep growing and will stay in the market. Already we are seeing innovative ways to make burgers, and there are different types of burgers. So they will not go away,” Panganiban said.

Last year Steak ‘n Shake announced it will open 40 outlets in the UAE.

Meanwhile, Beaton says burger brands entering the saturated market should differentiate themselves with their brand promise, rather than brand image, which is what many brands in the market are doing.

Failure to do so can result in customers losing interest in a new brand, he said.

“To be successful in Dubai with a new burger chain you really need to talk about the product benefits and why they are relevant and valuable. For example, attributes such as fresh, unique condiments, cooking method, complimentary side dishes, speed of service, and specialized equipment - factors factors like such are capable of delivering on a compelling brand promise.

“By simply stating ‘the best burger from country X’ without any basis to deliver on that promise will likely result in unfulfilled expectations,” said Beaton.

By Sarah Algethami Staff Reporter

Gulf News 2013. All rights reserved.