McDonald's in UAE (Research Paper Sample)

MCDONALD’S IN UAE
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McDonald’s is a worldwide renowned chain of restaurants. The McDonald’s corporation is the largest string of hamburger fast food eatery globally with 34,000 restaurants. Its headquarters are in the US and it is present in over 110 countries with a projected customer base of approximately 68 million. The McDonald’s opened its doors to the UAE in 1994. McDonald’s UAE is operated and managed locally. It currently has over 100 restaurants spread across the UAE. Decisions concerning the business are carried out in the UAE meant for the UAE market. It is a vital component of the region’s economy. McDonald’s UAE supports a number of different initiatives such as local charities. It invests much in the local labor force and contributes in nurturing local suppliers. In April 2013, McDonald’s UAE won the prestigious APMEA Ronnie Award for its outstanding community projects. McDonald’s was awarded by the Emirates National Oil Company (ENOC) with the Strategic Partnership award in August 2013 owing to a collaboration of over eight years. In September 2013 a Ramadan book crusade by McDonald’s UAE raised about 250,000 AED for Beit Al Khair orphans. The annual Coca-cola glass promotion was unveiled on the 15th of September 2013 where the trendiest glass Range (Coca-cola) was revealed. This paper discusses more on McDonald’s UAE.
Fast food is synonymous with the current generation and McDonald’s UAE is where they run to. During the 1950s fast food was popularized in the US and over the years fast food has become part of our everyday life. McDonald’s is the name associated with fast food and globally McDonald’s is renowned for offering the best fast food services. Emirates Fast Food co owns and operates McDonald’s restaurants set up in the United Arab Emirates. It has proudly served the UAE with several of its much loved foods from 1994. It sells hamburgers, sandwiches an assortment of chicken sandwiches, soft drinks, desserts and breakfast items. McDonald’s UAE also offers soup, wraps, vegetarian items and salads. McDonald’s UAE also offers drive drive through services that are much loved by travelers. It has over the years become a household name and an integral part of the hotel industry in the UAE. Essentially, fast food can be described as food that is served and prepared very fast. McDonald’s UAE recently launched McDelivery in several expanses of the UAE. McDelivery is a service whereby consumers in the UAE order their preferred meals by telephone or online (Anderson, 2013). The service runs from 8am to 1am.
The fast food sector of the economy also referred to as Quick Service Restaurants (QSR) is an important part of the global economy. Fast food businesses focus on high speed, low price and high volume products. Consumers of fast foods usually look out for quick meal alternatives and McDonald’s is always there for them. Owing to its reputation McDonald’s UAE is in a class of its own. It continues to increase the service standards in the UAE market. The fast food market in the UAE is evidently saturated. There are very many competitors who normally offer similar items for consumption. However, most of the McDonald’s competitors have actually copied their art from McDonald’s. These competitors may not be referred to as real competitors since McDonald’s UAE is the largest and most reputable chain in the region. In many of the places where there is a McDonald’s franchise in the UAE there is usually a row of other competitors. They sure bring about competition but McDonald’s UAE remains as a pacesetter.
McDonald’s UAE’s financial performance is steady. In 2010, fast food restaurants enormously increased in the UAE at a quicker rate compared to other western countries. Profits at the end of 2010 were huge (Ligaya, 2010). Over the years however, competition has been rife. As much as McDonald’s remains to be a trend setter, other small fast food restaurants have indeed been a challenge. This year sales have grown by 1.8 percent. According to observers McDonald’s UAE will perform progressively in the next one year. People in the UAE are increasingly focusing on the quality of foodstuff offered in restaurants (Trust in our Brand. 2013). The media continues to enlighten people on the negative consequences of certain foods especially the fast foods. However, McDonald’s UAE has responded by offering healthier choices.
Analysts argue that as much as people are being advised to quit taking fast foods, they still require quick meals. McDonald’s UAE has turned its focus to organic and fresh products such as healthy wraps, salads and other lower calorie alternatives. The price of commodities has been rising by day. Beverage and food inputs make up about 30% of costs, over the years the prices of wheat, corn and livestock have seriously risen. Increasing the prices of its products would be suicidal owing to the competition next door (Ligaya, 2010). Nevertheless, financial analysts affirm that fast foods are rarely affected by recession. The recent global recession caused an increase in the price of commodities and McDonald’s could not hike the price of its meals (Trust in our Brand. 2013). The profit margin went south over the period there was the recession but earnings have been gradual. Financial analysts who understand the UAE economy project that McDonald’s will observe a gradual financial performance.
McDonald’s has formed great bonds with the local community. It is a household brand name in the United Arab Emirates. Various initiatives have been initiated by McDonald’s UAE. In April 2013, McDonald’s UAE won a top prize meant for outstanding community projects. McDonald’s UAE battled with competition from 10 markets from the Middle East, Asia and Africa region. The prestigious APMEA Tom-Convention award is awarded to companies that have established superlative practices in community service (Outstanding Community Initiative, 2013). In the UAE, McDonald’s is highly regarded due to its consistency in providing quality service and products. It has positive media coverage. There is not a single article in the media every since the inception of McDonald’s that speaks something negative about it. Generally, the conduct of McDonald’s fraternity is great. It is a society partner that has ensured cleanliness and quality. UAE residents are choosy and when it comes to food cleanliness is a priority. McDonald’s is respected in the region for its constant firmness on hygiene. In terms of corporate social responsibility, McDonald’s UAE has conformed to international norms, ethical standards and the law in general. Professionalism and integrity are integral in McDonald’s, suppliers, employees and operators/owners have learnt to work together to ensure customer satisfaction(Outstanding Community Initiative, 2013). The McDonald’s brand is trusted all over the globe and in the UAE it is the same, the staff has always ensured that they deliver a great experience to every customer. Suppliers are carefully chosen to ensure the delivery of fresh and good quality raw products. McDonald’s stakeholders work mutually with a lot of trust and respect for each.
Corporate Social responsibility (CSR) is important since it benefits the business itself and the community. Consumers are not always concerned about the price of the commodities they buy but are concerned more on how socially responsible the business is. In September 2013, McDonald’s UAE raised money for charity amounting to 250,000 AED. Its Ramadan book campaign 2013 in collaboration with Beit Al Khair was able to come up with quarter million (Trust in our Brand. 2013). The campaign involved the creation of books for children which were then sold out in McDonald’s eateries in the UAE over the period of Ramadan. At McDonald’s the community is important it is where labor comes from, it is where fresh produce is purchased and it is where the consumers come from.
Globally McDonald’s is known to be conscio...