Catering players in Qatar have been in existence for more than 50 years. These companies were primarily established to provide meal services to the construction workforce, residing in camps. Further propelled by a high number of ex-pat workers, firms in Qatar started providing free meal services/food allowances to all their employees. Following this trend, end-user firms have entered into multi-year contracts with catering firms.
Throughout the vintage, ~30 players have entered the industry focusing on providing meals to all kind of end-users including event catering, construction/industrial, corporate, government, and healthcare clients. To build differentiation and establish a niche in a particular segment, firms such as Al Nawras Hospitality and Taste catering are focussing on ‘Event catering’ specifically while Compass Qatar has established its leadership in serving healthcare clients including Hamad Medical Corporation.
Similarly, Qatar Aircraft Catsssering Company (QACC) enjoys the monopoly of providing in-flight catering to all passengers commuting via Qatar Airways. During 2019, QACC served around 155,000 meals on a daily basis. Firms such as Zad Catering (part of Al-Jaber Group) were primarily set up to serve the employees of its 60+ affiliate companies and save the increased cost of outsourcing catering services to any other provider. Hotel based companies have also been providing ‘Outside Catering’ services dedicated majorly to serving VVIP, VIP guests.
Owing to high requirements and potential of earning super-normal profits (concentrated the structure among the top 10 domestic firms), many international players (headquartered elsewhere except Qatar) entered the industry. Such firms include Newest Gulf (part of Newrest International), Yemek Doha (leveraging its experience in Turkey), Compass Qatar (part of Compass Group), Sodexo Teyseer (49% ownership by Sodexo), Qatar Star Services (part of Kuwait based Mezzan Holdings) and others. These firms have also been able to gain popularity and on-board big clients; providing them with decent operating margins of >15%.
However, the imposition of blockade resulted in some firms exiting the industry such as Karam Services, Manhal Trading, La Villa Food & Catering, etc. The woes were augmented due to the economic downturn caused by COVID-19 resulting in firms such as Dunes Catering filing for bankruptcy and on-going serious discussions of the potential takeover of Amwaj.
The industry experienced a decent growth rate of 3.2% (compounded annually) during 2015-19, serving ~1 Mn meals daily in 2019, which is further expected to grow at a CAGR of 5.7% during 2019-24E.
While industry is preparing itself to serve the increased requirements of FIFA Football World Cup in 2022, analysts at Ken Research note that incumbents must resort to cost control, diversify their clientele across industries, and should maintain a target operating margin of ~10% to mitigate such disruptions.
Time Period Captured in the Report:-
Historical Period: 2015–2019
Forecast Period: 2020-2024
Key Topics Covered in the Report:-
Socio-Demographic Outlook of Qatar
Snapshot on Food & Beverage Industry
Catering Services Industry in Qatar (Market Size and Segmentation)
Competitive Landscape of Firms (Operational Performance, Financial Performance, Company Profiles)
Overview of Global players with prior experience in organizing sporting events
Regulations and Certifications applicable to industry
Future Outlook of Industry – including impact of COVID-19
Best Selling MENUSs – End user segment wise
For More Information on the Research Report, refer to below links: –
Related Reports by Ken Research: –
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Ankur Gupta, Head Marketing & Communications