Dining out has been a staple of the GCC for decades, and a large component of the food sector are franchised brands, both domestic and international. However, in the years before the pandemic the economies of the GCC were quite flat, suffering from low oil prices and low growth economies.

When the pandemic emerged in early 2020 and started affecting countries internationally, health authorities worldwide shut down whole sectors of the economy, including, of course, restaurants. Initially no one knew much about the virus, and extreme caution was built into strategies adopted globally. Only so-called essential shops were allowed to operate, and the food sector shrank by more than 70% in the GCC.

Until forward-thinking brands fast-tracked technology in order to resume operations under the pandemic restrictions. Delivery apps, quick commerce (or Q-commerce), dark kitchens and contactless delivery methods became the industry norm, with a 255% growth for brands who adopted these new technologies. These apps literally saved hundreds of food franchise brands that would otherwise have simply awaited the end of the pandemic and the restrictions it caused to be implemented.

Over the next couple of years successive governments rolled out vast vaccination programmes and other public health measures, and gradually things began to return to pre-pandemic types of activities, including dining out.

So what is the outlook for the next five years as the pandemic becomes a part of every day life, and economies return to more normal operational and profitable outlooks? In the GCC there’s been a beneficial increase in global oil and gas prices, partly due to increased global demand as economies begin to grow post pandemic, and partly due to the Russian war on Ukraine that severely impacted Europe’s energy supplies.

One trend that has been highlighted by several top commentators on the food franchise sector is the increased public awareness of the link between food, lifestyle and health. COVID disproportionally impacted people with existing poor health, such as obesity, low fitness levels and respiratory vulnerability.

As such there has been a surge of interest in vegetarianism, and indeed all the major franchised fast food brands (McDonalds, Burger King and KFC) have introduced vegetarian and vegan options to their menus.

Consumers want to eat more home-cooked, non-GMO, pesticide-free food and prefer fresh produce and plant-based options more frequently. Plant-based milk sales increased by 25% in the UK,  with 32% of consumers drinking plant-based milk as part of their diets, taking a £394 million chunk out of the £3.2 billion cow’s milk sales in 2021.  This trend will be replicated across the world as perceived healthier choices become normalised and made available by the large food companies to ever greater numbers of consumers.

The other trend is the rush (literal) to Q-commerce and food deliveries, particularly hyper-local delivery. Appification of the fast food sector has put every possible option at the consumers’ fingertips. From fine dining restaurant deliveries, to groceries from the local convenience store and everything in between, we can all access an almost limitless range of food via a plethora of apps on our mobile phones, to be delivered within a few minutes.

With the primary q-commerce categories currently being couriers, gifts and flowers, food, groceries and pharmacy, and are mostly concentrated in urban areas, this is set to expand to non-essential items like clothing, cosmetics and other categories and unexplored towns and rural areas will benefit with the growth in operational areas. Retailers will increase local storage capacity in order to satisfy the multi-channel demands in a reflection of so-called dark kitchens of successful restaurants that found a much larger market on the delivery side of the business.

Brands like Pickl focus on the healthiness of their fast food menu offerings, including a selection of vegetarian and vegan choices. Pickl also ensure that delivery drivers at their Emirati branches have indoor, air-conditioned waiting areas because the delivery of their food is vitally important for their business model. After all, if you look after the delivery drivers, they’ll look after your deliveries.