Consumers will soon get the chance to try America’s best-tasting burger after the agreement of a franchise deal to bring the Habit Burger chain to the UAE amid rising demand for fast-casual food outlets.
California-based Habit Restaurants has signed its first international franchise agreement with the Dubai-based Food Quest Restaurant Management.
It will open 50 Habit Burger Grill restaurants in the next 10 years, with the first one in the UAE expected in the second half of the year. Food Quest has rights to open Habit Burger outlets in the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait and Oman.
According to a Consumerreports.org survey in July, Habit Burger topped the taste list for fast food chains in the US, beating out Hardee’s, Burger King and McDonald’s.
The “booming economy, rising population and tourist arrivals, development of malls and increasing incomes” are all contributing to the growth of the restaurant sector, said Nikola Kosutic, a research manager for Euromonitor International.
“Strong growth is expected over the coming five years as a further influx of expatriates moving to reside in the country is expected in addition to the expected surge in the number of tourists attracted by strong international advertising for the country in addition to the strengthening position of Emirates Airline.”
Sales per outlet are also expected to grow by 4 per cent year-on-year in the next five years, and the spend per transaction is expected to reach Dh55 by 2018 from Dh50 in 2013, according to Euromonitor.
The Nasdaq-listed Habit, which started in the United States in 1969, serves burgers, sandwiches and salads across its 100 restaurants in the United States.
Last year, Food Quest said it plans to open 30 Denny’s diners in the Middle East, starting with the UAE this year.
Restaurant franchising is a rapidly growing segment in the UAE as more international brands look for a piece of the market even amid a rise in lifestyle diseases such as diabetes and obesity.
The size of the UAE’s fast-food restaurant segment alone was US$2.57 billion last year in terms of sales, led by KFC, McDonald’s, Pizza Hut, Subway and Burger King, according to Euromonitor.
Overall restaurant sales last year in the UAE reached $9.14bn and they are expected to grow to $9.85bn this year.
Elevation Burger, which markets itself as a healthy option, opened in 2013 and now has four outlets in Dubai.
There have been some closures as well.
Last month the US chain Steak ’n Shake – number 10 in the America burger taste survey – closed its two outlets in the UAE, in Dubai Mall and Abu Dhabi’s Dalma Mall. The company said on its Facebook page that it was no longer a part of Saleh Bin Lahej Group. Steak ’n Shake has 512 restaurants in the United States.
ssahoo@thenational.ae
Follow The National's Business section on Twitter
