A snapshot of global foodservice trends and industry performance as tracked by the NPD Group across the world and lessons for the UAE. Muhammad Ali Syed, Principal, Mingora Consult

1. In Collaboration with
DUBAI SEP 3, 2018
Trends

2. Things to Adopt
Things to Let Go

3. ▪ MENA based restaurant
knowledge & advisory
company
▪ Retail/PE/IB clients –
franchisee/franchisor
▪ Market intelligence and Big
Data partnerships across
EMEA and North America
▪ Global information and
advisory services company
▪ 2,000+ clients. multiple
segments. 1,600+ employees
▪ 23 countries across Americas,
Europe and Asia Pacific

4. 75000+ Restaurants
52 weeks a Year
Multiple Market Segments
9
Countries Worldwide (Germany, Great
Britain, Spain, France, US, Canada, Russia,
Austria and now UAE!)
500+ Clients Worldwide
SalesTrack®
Actual Restaurant Sales, Tx and Ticket
800+ Consumers daily
365 Days a Year
All Market Segments
13 Countries Worldwide
500+ Clients Worldwide
CREST®
Consumer Out of Home Eating

5. Adopt # 1
‘Marketing’ Mindset

6. Product (Quality) as Reason for Restaurant Choice % of Visits (Global)
37% 37% 38%
39%
40% 41% 41% 42%
42%
2010 2011 2012 2013 2014 2015 2016 2017 2018*
• Year to Date
Source: The NPD Group/CREST®
Operators need to move on from convenience and
efficiency to ‘solutions’

7. Deal Traffic
• Year to Date
Source: The NPD Group/CREST®
Consumer Inducements are indispensable for survival
75
100
125
2012 2013 2014 2015 2016 2017
GB
France
Germany
Italy
Spain
China
Australia
Canada
USA
Brazil

8. Conclusion
Time to Put Leadership Hat on
Marketing

9. Let Go # 1
The Customer You Don’t Have

10. • EU Market – all visits
Source: The NPD Group/CREST®
Heavy users are the heart and soul of a brand – but
they are no longer as frequent
25.0%
30.0%
35.0%
40.0%
2011 2012 2013 2014 2015 2016 2017 TTM June 2018
Light (1x) Medium (2/3x) Heavy (4+x)

11. PM Snack
Traffic indexed to 2012
Source: The NPD Group/CREST®
Example: Businesses put disproportionate emphasis
on PM Snack – ignoring their core breakfast operation
75
100
125
2012 2013 2014 2015 2016 2017
GB France
Germany Italy
Spain Russia
China Australia
Canada USA
Japan Brazil
Korea

12. Conclusion
Hold on to current heavy users
and avoid distractions

13. Adopt # 2
The Customer’s Home

14. Regardless of where we source the meal, we
increasingly consume it at home
72%
73%
74%
75%
76%
77%
78%
79%
80%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
NET methodology change in 2013; 1984-2015 restated
Source: The NPD Group/National Eating Trends®, Years ending February ’13-’17
Prepared and Eaten in Home
Purchased Away From Home but Eaten in Home
Share of Occasions

15. The NPD Group, Inc. | Proprietary and confidential 15
In the aftermath of the global
crisis and in the face of the
uncertainty that globalism brings,
consumers are not shopping like
they used to….particularly
Millennial and Gen Z consumers
The brave new digital world is not supportive
of being out and about.
Internet shopping and digital
goods allow consumers to acquire
what they need in many
categories without actually
entering a store.
Digital entertainment, high
bandwidth and high quality
hardware make staying home
more appealing than going out
for entertainment.
DAMPENED
ENTHUSIASM NO NEED TO GO OUT NEW THINGS TO DO
Economy
Online
Retail
Online
Fun

16. Digital Traffic
2013 2017
1.1 Billion
2.5 Billion2% of restaurant orders
4% of restaurant orders
13%
7% 31%
49%
Other Digital
Third
Party
App
Digital From
Restaurant
Telephone For Delivery
Source: The NPD Group/CREST®, year ending December
*Digital Orders = Internet, Mobile App, and Text Message
Mobile App was added in 2013
Digital ordering has posted rapid growth in
the past 4 years, doubling in size in that
time frame.
Third party apps currently account for 13%
of all Delivery visits

17. Conclusion
Ask yourself: do you have a digital
strategy in place to win at the
customer’s home?

18. Let Go # 2
Letting Good Data Go To
Waste

19. Starbucks and Dominos focus on bringing their
consumers back better than most
• 60% of Domino's orders through the
chain's website, app and other digital
channels.
• 22% of Starbucks sales through App in
2017
• Rewards program users contribute 39%
of overall sales
Bain and Company found that increasing customer retention rates by just 5% would increase profits by 25-95%.

20. Conclusion
Own Customer’s Data for Decisive
Competitive Advantage

21. SalesTrack UAE
Average 1-
Total
My
Chain
Total
Tickets
MINGORA
Ending 25-08-2018
Week 34
SALESTRACK UAE
Sales and Tickets trends by chains
Weekly sales report for
Total Sales
Measure
Total Sales
Total Tickets
segment
1-Total market
2-Fast Food
3-Casual Dining
Period type
Week
YTD.
Period 2018
YTD. Week 34
YTD. Week 33
YTD. Week 32
YTD. Week 31
▪ Trusted weekly restaurant
performance tracking tool in
the UAE.
▪ 31 Chains, 475 stores and
counting.
▪ Actual Sales, Transactions and
Ticket Data.
▪ Global and Regional Casual
Dining and Fast Food brands.
▪ Consolidated industry reports
issued by Thursday of each
week - 3 days after week close.
SalesTrack KSA starts in October, 2018.
Restaurant industry performance in KSA based on actual data from leading chains.

22. Procedure for joining SalesTrack Service in UAE and KSA
GRIF Society restaurant operators will receive a flat discount of 20% on
annual subscription rates.
Please reach out to Muhammad Ali at Mingora Consult with your GRIF
society membership number on contact information below:
Muhammad Ali Syed
Principal, Mingora Consult
508, The Fairmont Dubai, UAE 328002
M: 971 50 4578472| O: 971 4 311 6674
muhammad.ali@mingora.org|www.mingora.org