Uploaded by The Franchizery

Understanding the Middle East Halal Food Franchise Market

advertisement
Understanding the Middle East Halal
Food Franchise Market
The Halal food market in the Middle East has been proliferating over the last years, with
demand coming from both local and international markets, with Halal certification proving
popular. The world's Muslim population grows, and so does the number of people looking for
Halal food options: the Middle East is undoubtedly a region bound to succeed in this respect
with Halal food franchises.
Franchising Grows for Halal Food
According to Al-Alem, "The Middle East is a very vibrant and diversified region where
demand for Halal food, rather, is in the blood of culture and everyday life. This demand is not
confined to local consumers but also coming from a rising number of expatriates and tourists
who are seeking options for Halal food". Therefore, many international franchises have tried
to cater to this potential in their menus by conforming to Halal standards.
Local players such as KFC, Subway, McDonald's and many others have succeeded in their
attempts of localizing the menus. This has inspired other franchises to do so and, in a way,
shows a more comprehensive outlook that Halal certification has become an integral part of
business strategy in this region.
Market opportunities
The Halal food market has many opportunities for new entrants. As reflected in the State of
the Global Islamic Economy Report, the Halal food market will be assessed at $1.9 trillion by
2024. Meanwhile, the Middle East, with its vast and fast-growing Muslim population, is
seeing increased per capita income and will try to capture a substantial part of it.
Regional governments have established strict Halal certification processes for regional
governments, so most Middle Eastern countries have implemented rigorous Halal
certification processes, vouching for the authenticity and integrity of Halal food products.
This, therefore, protects consumers through the regulatory framework but also gives
businesses a clear roadmap, which makes it easy for new franchises to penetrate the
market.
Key Players and Competitive Landscape
The Middle East Halal food franchise market is dominated by a number of key players.
Established local brands like Al Baik that started in Saudi Arabia have set the bar high for
quality and customer service. The international brands have also represented their shares by
adapting their offerings to meet local tastes and be in accord with the Halal requirements.
A highly notable firm to have made such a significant move in the Halal food franchise
business is The Franchise.
As the company is renowned for developing and managing franchises comprehensively, The
Franchizery has been critical in its support to entrepreneurs interested in establishing Halal
food franchises. It assists from market research to operational guidance, ensuring that the
franchisees are equipped with everything needed in this highly competitive market. The
particular value of their work is seen in the expertise with which they deal with Halal
certification and compliance, helping franchisees very quickly steer through the complex
regulatory environment.
Consumer Trends and Preferences
Halal food franchises can be successful in the Middle Eastern marketplace only if the
consumer behavior of the target market is known. The Middle East consumer primarily seeks
authenticity, quality, and observance of Islamic laws applied to foodstuffs. They favor Halal
sign boards or brands having highly publicly visible degrees of reliance on manufacturing or
sourcing practices.
But coupled with this is the growing trend toward health consciousness, with consumers
moving towards more nutritious and wholesome dietary consumption. This trend in
consumer preference goes hand in hand with the Halal food concept, which implies
cleanliness, purity, and ethical treatment of animals. Franchises that can offer healthy
options certified as halal will probably find a good reception in the Middle East.
The best example is the tilt of brands like TERIYAKI MADNESS, which adjusted their menus
according to an increased health-conscious market—making the items healthier without
sacrificing taste or authenticity. It was by including fresh ingredients and customizable meals
that TERIYAKI MADNESS has now managed to cater to the growing demand in the Halal
food category.
Challenges and Strategies
Although the market potential of Halal food franchising in the Middle East is promising, it is
also not free from a few problems. First, to ensure that supply chains are Halal compliant
and staff at all levels are well trained in Halal food handling, it would be a challenge for
franchisees to maintain a consistent Halal certification across the outlets. Also, the market is
very competitive due to several local and international brands vying for the consumer's
attention. For a franchise to differentiate itself from the rest, the focus should be on customer
experience coupled with maintaining high quality and service standards. Brand awareness
and reaching out to a broader public through marketing using digital media and social
platforms are suggested.
The Role of Technology
Technology has been playing an ever more critical role in the successful operations of Halal
food franchising businesses. Indeed, digital solutions have evolved within technology
advancements: from online ordering systems and mobile apps to providing ease of
convenience for customers to ease operations. Franchisees can use technology to improve
efficiency, manage inventory, and gain insights into consumer preferences. Secondly, the
rise of food delivery apps has also opened the doors for Halal food franchises. With these
popular delivery chains, a franchise can tap into the growing demand for convenient meals
delivered right to one's doorstep. More so, this trend is most notable in urban areas where
pressure from living styles pushes many people towards convenient, easy eating solutions.
Conclusion
The demand will increasingly boost the franchised Halal food market in the Middle East,
driven by an ever-increasing consumer base and a supportive regulatory environment. For
investors in this market, companies like The Franchizery bring in their invaluable support and
guidance for developing a franchise. Halal food franchises can succeed in such a dynamic
and competitive market by understanding consumers' preferences, adhering to stringent
production standards, and using technology. When that is strategically done, definitely
businesses with total commitment to quality will handle challenges and seize opportunities
associated with the burgeoning Halal food industry in the Middle East.
Download