A little planning goes a long way

Sales clerks help a customer at Chocolaty. Jeff Topping / The National

Small businesses face a challenging time during Ramadan but the switch in working hours can pay off in the service sector.

Retailers and restaurants have to juggle new opening hours as well as come up with a flexible approach for staff during the Holy Month.

"We generally see a drop in sales for the first 10 days," said Troy Norris, a human resources director at Gulf Greetings, which owns The Toy Store, which has five outlets in Dubai and employs 400 people at 60 retail outlets across the Middle East.

"But during the entire month of Ramadan, we generate approximately 30 per cent more. This is helped by sales after iftar," adds Mr Norris.

Small and medium-size enterprises (SMEs) are crucial to the UAE, accounting for about 80 per cent of the country's non-oil economy.

This year alone, 20,000 SMEs are expected to launch joining the 175,000 already operating in the Emirates.

Naturally, during Ramadan, catering for staff as well as customers is an imperative.

"We have to ensure that there is a good mix of religions to enable our Muslim workers to have time off during the breaking of fast and prayer," said Mr Norris.

"Our store staff strictly follow the Ramadan working hours and are paid overtime if they do more than six hours."

The school holidays, which this year coincide with Ramadan, will also affect SMEs, as families leave the UAE for their annual summer break.

"This year Ramadan falls squarely during school holidays and it seems like a lot of people are away," said Yunib Siddiqui, the owner of the boutique food store Jones the Grocer in Abu Dhabi. The company has three outlets in Abu Dhabi and one in Dubai.

"I can't say [what our] trading [figures] will be but there will be a decline … I am sure it will be in double digits percentage."

Mr Siddiqui said it was important to "plan ahead" for Ramadan as well as the summer holiday season.

"[It is always wise] to factor in a substantial dip in trading during a midsummer Ramadan and plan ahead to reduce inventory and tighten up budgets," he said.

For other small companies, rescheduling production to meet increased demand becomes a priority for the next four weeks.

Chocolaty, a manufacturer of chocolates in Dubai, expects up to 40 per cent growth month-on-month during Ramadan. But producing those sweet treats can pose problems.

"Production will be a challenge as work timings get reduced but we have been anticipating this," said Fuad Abdul Rahma, the owner of the company, which employs 10 people.

"We started building up our stocks well before Ramadan."

The shorter working week, from 48 hours to 36, can also be a challenge for SMEs.

Mr Norris believes forward planning and flexibility is the key to making Gulf Greetings run smoothly during the next month but there are also challenges.

"The reduced hours mean there is less time to talk to international and local partners," he said.

Reshuffling staff rosters is another key part of planning during Ramadan.

"It is always possible that senior staff who are not fasting and who are not subject to reduced hours can fill in for more junior staff who are subject to the reduced hours," said Neil Crossley, the group head of employment, pensions and benefits practice at DLA Piper in Dubai.

"But then, there isn't really any productivity or business focus during this time of the year in the Middle East," he added.

"Businesses cope year-in and year-out - they just need to be flexible."

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