Aug 17, 2017: The catering services has grown majorly driven by the industrial and hospitality sector which are the largest end users of catering services. The government has initiated major infrastructure reforms under some vision in various sectors of the economy such as transport network, education, healthcare, hotels and others which further created opportunities for catering services market as the number of labor camps increased. Such labor camps require catering services at their site for the workers and management at standard quality and low price. The education and healthcare sector together contributed big in the revenue share of catering services market.
How Have The Different Segments in Catering Service Market Performed?
The contract catering market and non contractual catering have acquired market. Only marriages in personal spaces are non contractual whereas all other end users hire catering services on contractual basis which include airline, schools, corporate offices, hotels, hospitals, industrial and labor camps. Therefore, the share of contract catering services is higher. Marriages have accounted big in the total catering industry. Mostly marriages are held in hotels, halls and a few in villas and backyards.
Company Profile Of Major Players
Major players in the industry are Newrest Gulf Catering, Qatar Aircraft Catering Company and IFS Qatar. This market has seen a rise in competition which is being driven by growing demand and increasing use of technology and innovation. Since major clients hire on contractual basis, these players compete to achieve contracts for longer duration to ensure regular orders and increase profits. They offer different menus and customization services tailored for different end users. Furthermore, they indulge in various marketing activities to build their brand equity and reliability.
Trends Developments And Restraints in Catering Services Market
The infrastructure development has seen rapid growth in the last five years under the guidelines of Qatar Vision 2030. The government has allotted billions for infrastructure, transport, hotels and stadia as it prepares to host the 2022 FIFA World Cup. Rising construction activities increased the number of labour camps in Qatar. Such camps required catering services at competitive prices and standard quality of food and service. Qatar saw millions of visitors majorly during Eid celebration events and the Qatar Summer Festival. QTA’s collaboration with the Ministry of Interior and Qatar Airways has further facilitated visitors’ entry to Qatar. Over the past 5 years, growth in number of visitors increased. Also, with the recent introduction of a 96-hour free visa scheme for travelers transiting in the country, the number of tourists is consequently projected to increase. Qatar has seen rising number of health conscious people looking for light and nutritious food.
Qatar Catering Services Market Future Outlook And Projections
Qatar catering services market is expected increase in 2025 as compared 2016 which will be majorly driven by the rise in construction activities as major infrastructure projects get implemented under the Qatar Vision 2030. The country has started renovation and new projects for World Cup 2022. The country has devised plans to draw billions by 2022 for the infrastructure projects including stadiums, hotels and other transport related facilities. Tenders for such projects have been floated. Construction of these new projects will create demand for catering services at labour sites. The tourism sector is expected to reach many billions by 2025 with a target to receiving millions of visitors by 2025. This will be supported by billions in investments under National Tourism Sector Strategy 2030. This will further create opportunities for catering services in hotels and hospitality sector. Catering services can use the experiential dining concept to gain competitive advantage by offering services such as theme food and extreme forms of design and décor.
Analyst Recommendation
As Qatar government has increased focus on infrastructure development in tourism, education and healthcare sector, catering services will majorly see rising demand from these end users. Catering services should keep tracking government tenders for capturing contracts for catering at remote industrial sites and mega infrastructure projects. Supply chain efficiency for catering service involves cost reduction, minimum wastage, storage and inventory management, integrating various departments in the manufacturing process and incorporating a proper monitoring and tracking system in order to avoid contamination and ensure quality and hygiene standards. Another important aspect is agility which means that a catering service should have the ability to deal with variable demand and production flexibility. Furthermore, technology and digital platforms are being increasingly used to enhance productivity. These apps can be used by new entrants to improve their value proposition.