United Arab Emirates Quick Service Restaurant Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

United Arab Emirates Quick Service Restaurant Market Trends

QSR industry in the UAE grows with the expansion of global brands through franchisee partnerships

• The number of QSRs is expected to increase significantly over the study period, registering a CAGR of 1.82%. The growth is attributed to the expansion of global QSR brands in major urban communities through franchisee plans of action. For instance, brands like Burger King, Buffalo Wild Wings, and Texas Chicken operates under the franchise partner, The Olayan Group. The number of franchised outlets of these brands in 2022 was 61, six, and 40, respectively. Kamal Osman Jamjoom Group LLC is the franchise partner of Subway in the nation, with 167 stores. With the rising number of global brands, QSRs increased in 2022, reaching 10,278 outlets.
• The quick service restaurant market is majorly driven by the meat-based cuisines segment, followed by the burger and bakeries segment. Meat-based foods, including fried chicken, beef patty burgers, chicken cheeseburgers, chicken kebabs, and grilled chicken, are becoming increasingly popular nationwide. More than 71.33% of independent meat-based QSRs have opened in standalone locations in cities, including Al Satwa, Abu Dhabi, Dubai, and Sharjah, to cater to the customers' need for fast and affordable food options. Fast food chains well-known for their meat-based products are Wendy, KFC, McDonald's, and Five Guys, with 17, 30, 119, and 13 outlets, respectively. Locals tend to spend more money on food and beverages. In 2022, the spending on food increased by 15% from 2021. The increasing consumer spending on fast food is raising the number of orders per outlet (which reached an average of 83 per day in 2022), thereby leading to an increase in the number of outlets. In 2022, more than 58.43% of people preferred to eat fast food daily, leading to the opening of several small-scale fast-food outlets.

UAE's QSR industry grows with tourist arrivals, popular dishes include shawarma, kebab, and falafel

• The average number of orders in the market studied is expected to increase over the study period by 0.19%. The average spending on fast food in Dubai is USD 40.84 per day. The local consumer has a strong preference for Arabain street food, which is offered by most small-scale fast-food eateries. Most ordered fast food by the people is regional, including shawarma, kebab, fried chicken, mutton keema sandwich, and falafel, priced at USD 2.72, USD 16.3, USD 5.4, USD 6.2, and USD 8.14, respectively, per 300 gm.
• The growth of the market studied is majorly due to the rising number of tourists. In 2022, Dubai welcomed 14.36 million international overnight visitors compared to 7.28 million tourist arrivals in 2021. Regional as well as American fast food gained popularity. With the rising tourist arrivals, the number of orders, primarily in leisure and travel locations, has surged. The average order value increased from USD 12.23 in 2017 to USD 12.37 in 2022.
• Fast food consumption is high in the nation as more than 47% of the people in the nation visit restaurants daily. The preference for foods like pizza and burgers is growing; more than 32.24% of QSRs offer burgers and pizza. Owing to the high consumption, the revenue of popular QSR brands is increasing. For instance, in 2021, McDonald's revenue in the market studied reached USD 533 million, and Subway's revenue increased to USD 9.4 billion. Owing to the rising inflation rate, which increased by around 1.97-4.83% from 2017 to 2022, and the number of orders per year which increased to more than 30,428 in 2022, the average order value is anticipated to continue in its growth trajectory.

Segment Analysis: Cuisine

Meat-based Cuisines Segment in UAE Quick Service Restaurant Market

The meat-based cuisines segment dominates the UAE quick service restaurant market, commanding approximately 32% market share in 2024. This significant market position is driven by the strong preference for meat-based fast food options among both nationals and expatriates in the UAE. The segment's prominence is particularly evident in major urban centers like Dubai and Abu Dhabi, where leading restaurant chains such as Al Baik, KFC, Texas Chicken, Jollibee, Pickl, Chicken Cottage, and Popeye's have established a strong presence. These establishments offer a diverse range of meat-based products, including fried chicken, chicken wings, meatballs, shawarma, kebab, and various BBQ dishes, catering to the local population's high consumption of meat-based fast food, with around 55% of people consuming such items two to three times per week.

Pizza Segment in UAE Quick Service Restaurant Market

The pizza segment is emerging as the most dynamic sector in the UAE quick service restaurant market, projected to grow at approximately 21% CAGR during 2024-2029. This remarkable growth trajectory is fueled by several factors, including the increasing adoption of home delivery services and the segment's ability to cater to diverse consumer preferences through customization options. Pizza chains are continuously innovating their offerings with special products like chicken pizza and introducing new delivery technologies such as oven-based delivery boxes to maintain food quality. The segment's growth is further supported by its strong presence in various locations, including hotels, airports, and railway stations, capitalizing on the country's robust tourism sector and increasing consumer preference for convenient dining options.

Remaining Segments in Cuisine Segmentation

The UAE Quick Service Restaurant market features several other significant segments, including burgers, bakeries, ice cream, and other QSR segments. The burger segment maintains a strong presence with international chains offering premium and gourmet options, including innovative offerings like camel burgers. The bakeries segment has carved out its niche by focusing on health-conscious consumers and offering artisanal products. The ice cream segment has found success through innovative flavors and strategic positioning in leisure locations, while other QSR segments contribute to the market's diversity by offering various international and local food options, including snacks, salads, desserts, and regional specialties.

Segment Analysis: Outlet

Independent Outlets Segment in UAE Quick Service Restaurant Market

Independent outlets dominate the UAE's quick service restaurant market, commanding approximately 54% market share in 2024. The segment's strong position is primarily driven by the country's entrepreneurial culture and supportive regulatory environment for small businesses that cater to local preferences. Independent meat-based cuisine outlets are particularly prevalent, with over 71% of them operating in standalone locations across major cities, including Al Satwa, Abu Dhabi, Dubai, and Sharjah. These establishments have successfully carved out their niche by offering fast and affordable takeaway food options that resonate with both locals and expatriates. The segment's success is further bolstered by the increasing consumer spending on food and beverages, with the average number of orders per outlet reaching 83 per day, demonstrating the robust demand for independent quick service restaurants in the region.

Chained Outlets Segment in UAE Quick Service Restaurant Market

The chained outlets segment is projected to experience substantial growth, with an expected CAGR of approximately 19% during 2024-2029. This growth trajectory is primarily driven by the increasing preference for convenient food among the nation's youth, with most preferring to order from popular restaurant chains due to their consistent food quality assurance and established brand reputation. Major international chains are actively expanding their presence through strategic franchise partnerships, with brands like Burger King, Buffalo Wild Wings, and Texas Chicken operating under established franchise partners. The segment's growth is further supported by the rising adoption of digital ordering platforms and delivery services, with around 47% of the population ordering food at least once a week. Additionally, the expansion strategies of global brands and their focus on menu innovation and customization options are expected to fuel the segment's growth in the coming years.

Segment Analysis: Location

Standalone Segment in UAE Quick Service Restaurant Market

Standalone locations continue to dominate the United Arab Emirates quick service restaurant market, commanding approximately 72% market share in 2024. This significant market position is primarily driven by the country's large expatriate population, which makes up about 85% of the total population and demonstrates a strong preference for convenient, affordable dining options. Standalone QSRs are particularly successful due to their strategic locations in major urban communities, offering easy accessibility to both residents and visitors. These establishments benefit from lower operational costs compared to mall-based locations and greater flexibility in menu customization and operating hours. The segment's strength is further reinforced by the increasing demand for delivery services, with standalone locations well-positioned to serve their surrounding neighborhoods efficiently.

Travel Segment in UAE Quick Service Restaurant Market

The travel segment is projected to exhibit the strongest growth trajectory in the UAE QSR market, with an expected CAGR of approximately 21% during 2024-2029. This remarkable growth is primarily driven by the UAE's position as a global aviation hub, particularly through Dubai International Airport, which maintains its status as the world's busiest international airport. The expansion of quick-service restaurants in travel locations is supported by the increasing air passenger traffic and the growing preference for grab-and-go food options among travelers. Major international QSR chains are strategically establishing their presence in airports, railway stations, and bus terminals across the UAE, offering convenient dining solutions for travelers. The segment's growth is further bolstered by the UAE government's continued investment in transportation infrastructure and the rising number of international visitors to the country.

Remaining Segments in Location Segmentation

The retail, leisure, and lodging segments each play vital roles in shaping the UAE's QSR market landscape. The retail segment, primarily comprising restaurants in shopping malls and commercial centers, benefits from the country's strong mall culture and high footfall in retail spaces. The leisure segment, encompassing QSRs in entertainment venues, cinemas, and recreational areas, caters to the growing entertainment sector in the UAE. The lodging segment, which includes restaurants in hotels and other accommodation facilities, serves both tourists and business travelers, offering convenient dining options for guests. These segments collectively contribute to the diverse and dynamic nature of the UAE's QSR market, each serving distinct customer needs and preferences.

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