Rafic Fakih, the managing director for Emirates Fast Food, which runs and owns McDonald's outlets in the UAE. Ravindranath K / The National
Rafic Fakih, the managing director for Emirates Fast Food, which runs and owns McDonald's outlets in the UAE. Ravindranath K / The National

Fast food giant McDonald's just keeps growing



The big yellow arches are synonymous with hamburgers throughout the world. But nowhere more so than in the UAE, where Emirati teenagers recently voted McDonald's their favourite brand.

Underpinning the sheer size of the global fast-food chain, McDonald's last month announced worldwide profits of US$1.41 billion (Dh5.17bn) for the second quarter, a 14.6 per cent increase compared with the same period last year.

Sales growth in stores across the world increased at a rate of 5.1 per cent last month. Europe performed strongly, up 5.3 per cent, while Asia, Africa and the Middle East posted figures of 4 per cent.

The UAE did even better, with sales growth this year of 7 to 8 per cent, according to Rafic Fakih, the managing director for Emirates Fast Food, which runs and owns McDonald's outlets in the UAE.

He explains how the burger giant is trying to offer customers a range of healthy food and why residents across the Emirates continue to flock to the brand.

Given the high rate of obesity in the UAE, how do you marry selling fast food and being responsible in the community?

We offer people choice. We have salads, fruit, milk, soft drinks, fruit juices and we let people decide for themselves.

So it is all about choice.

Yes, we offer people anything they eat at home - bread, potatoes, meat, chicken and salad. You need a balanced diet. You have to walk and go out to exercise. We are not here to decide what people do.

Do you also help customers understand what they eat?

Absolutely, we inform the customer what they eat when they buy. On each tray mat they have all the information on the food, the ingredients, the fat and sugar content. People have to decide, they are educated and informed.

What about children?

Their mother has to decide. We advertise for the mother, not for the children. The Happy Meal is orange juice, or a drink, they can choose between cheeseburger, nuggets, hamburger, or veggie burger and fruit or fries. We don't show the Happy Meal, we don't show the product. If we do show any of the product, it is the orange juice and the fruit.

Which are the best-selling items on the menu here in the UAE?

The McChicken sells well. Chicken is more popular than meat here. In the Far East they like fish and Europe it's meat. We also have introduced the McArabia Chicken and Kofta, which are also popular here.

Which is your favourite item?

I normally eat a plain cheeseburger.

McDonald's menu seems to taste the same anywhere in the world. How can a global company achieve such consistency?

It's a huge logistical process. We have approved suppliers worldwide, and normally the volume of the system is so big because suppliers are only willing to work for you. One of the differences you might taste is the flour in the bread, it changes in each country and area of the world. Everything else, sauces and meat, it's the same.

Why do you think McDonald's is currently more popular in the UAE than elsewhere?

McDonald's is popular everywhere, but the penetration here helps. The more restaurants you have, the more people know your food. They get to know your quality, role in the community and service. It's a lot of things that people notice slowly when using us. The UAE is also a young country that has a high number of tourists compared to the population.

What sales growth are you seeing at the moment?

Before 2009 we saw double-digit growth in our stores, but since then it has been single digit. In that time, we were growing stores and if you grow like we did, at between 12 to 14 stores each year, it has an effect on the same-store growth.

So sales growth fell because your customers were spread out over more stores?

Yes. But in June this year we again saw double-digit growth in our stores, as more tourists and visitors came to the country. There was also an effect from people shopping more during Dubai Summer Surprises.

Many tourists have switched to the UAE this year because of unrest elsewhere in the region, so is this double-digit growth likely to be a one-off?

If the trend of visitors continues to be high, we will continue to see double digits. There is no reason why Dubai can't become more and more appealing. When a commercial road changes, it is very difficult to bring it back like before.

Which type of stores perform well here in the Emirates?

Malls are selling well and residential areas with drive-throughs are also doing well, especially when people are coming back from work.

Subway recently overtook McDonald's as the biggest food chain in the world and the brand is also expanding rapidly here. Is Subway a threat to McDonald's dominance?

We don't count Subway as a competitor. They offer a different product to a different customer. It's not hot food, it's more convenience. McDonald's has always been a place where young adults and families like to go.

What about the growth in gourmet burger restaurants?

The price is about three times our price. It's not the same category. People use McDonald's more frequently and it's more family oriented. There's not a big difference between our burger and a gourmet burger, but theirs is more expensive.

You recently signed a deal with The Neutral Group to convert your vegetable oil into biodiesel to fuel your lorries. How much money is this going to save you?

It will not save us money. We will pay the same price for the diesel we buy from them and we will sell them our used oil for the same price we used to sell to a third party company.

So it will not cost you anything then?

It doesn't cost us anything. It costs us a little in effort and logistics. But at the end you are using a sustainable product. We have always been looking at ways to give back to the community. If we have the same result by using a biodiesel product, then all the better.

How much is the contract with Neutral Group?

You know the American Midwest thinking - to be more honest with your partners. You don't make problems, this is the contract. There is an understanding, they sell, we buy from them for five years and it is an open book. If they do too much profit we will split from them, they have to take profit.

What is the profit margin that Neutral expects?

There is an agreement with them. This process will cost them in investment, which will have to be returned, plus they have to have a return on their investment when everything is set and clear after two years. We have to make it work, they should be profitable and we should not pay more than we are paying now. Normally in business you see how much you invest in a plant, you have to cover your costs, plus a return on investment. A good investment is 12 to 15 per cent. Above 15 per cent and questions will be asked.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Naga
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While you're here
Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association
Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.

Student Of The Year 2

Director: Punit Malhotra

Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal 

1.5 stars

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Profile

Company name: Jaib

Started: January 2018

Co-founders: Fouad Jeryes and Sinan Taifour

Based: Jordan

Sector: FinTech

Total transactions: over $800,000 since January, 2018

Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups

Five healthy carbs and how to eat them

Brown rice: consume an amount that fits in the palm of your hand

Non-starchy vegetables, such as broccoli: consume raw or at low temperatures, and don’t reheat  

Oatmeal: look out for pure whole oat grains or kernels, which are locally grown and packaged; avoid those that have travelled from afar

Fruit: a medium bowl a day and no more, and never fruit juices

Lentils and lentil pasta: soak these well and cook them at a low temperature; refrain from eating highly processed pasta variants

Courtesy Roma Megchiani, functional nutritionist at Dubai’s 77 Veggie Boutique