FOOD & BEVERAGE AIRPORT TRENDS - SHARJAH INTERNATIONAL AIRPORT 1
Dear ...... ,
We’re proud and excited to have the opportunity of working with We believe our history and achievements, and our proven you in what is an important chapter for Sharjah International market expertise, demonstrate how well equipped we are to Airport. provide you with the same levels of success we’ve achieved around the world. Our ambition is to provide you with a unique, innovative and culturally specific offer for your food and beverage outlets at As each airport development project is unique, our approach is Sharjah International Airport. comprehensive and tailored to you. We analyse the market, the passenger profiles, the history and future of the airport and the We want to bring to you the same great brands that customers region. around the world love. But we’re also looking forward to bringing you new concepts and ideas to perfectly fit your needs. That’s how we aim to become a true partner in your development. We’re a strong ally in helping you to achieve your goals. Alpha Group is one of the leading global companies in the aviation food and beverage industry. We provide our services We hope you enjoy learning more about us, our brands and our across the UK, southern Europe and the Middle East. Our successes, and finding out more about the great value we can passion is to continuously develop new and innovative brands, bring to your project. exceeding the expectations of our customers.
Christo Kassarov General Manager of Alpha Flight Services UAE L.L.C.
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CONTENTS
ALPHA GROUP Group Structure 05 Mobile Application 31 01 Owned Brands and Franchises for the Retail Division 07 Alpha in Sharjah 33 TODAY Flight Services Division 09 • Alpha/Air Arabia Join Venture 33 Alpha Group Milestones 11 • Employee Strength 33 Our Stakeholders 13 • Flight Catering Center 33 • Air Arabia 13 • Flight Catering Services 33 • dnata 15 • Secured Catering Center 35 Our Catering and F&B International Footprint 17 • Quality Assurance 35 7 Success Habits in Airport Business 19 • Our Vision 37 Know How in Airport Development 23 • Other Catering Services 37 The Story Behind the Changes 25
FACTS FINDINGS & Pillars Of Differentiation 39 Catchment Area and Passenger Description 57 02 • General Market Overview 39 • Sub Market Segmentation 59 MARKETING • Aviation Trends in the Arab World 41 • Demographics and Socio-Economic Characteristics of • Aviation Sector in the United Arab Emirates 43 Passengers from Catchment Area 61 • Fleet Development 45 • Brand Awareness 63 • Sharjah Economic Overview 47 • Air Travel Purchasing Habits 67 Current Market Assessment 49 • Qualitative Analysis – Customer Perception over Sharjah • Sharjah Airport Positioning 49 Airport 69 • Sharjah Future Development 51 • Demand Forecasting 71 • Current Air Travel Demand at Sharjah by Airline 53 • Ideal Product Mixt – 4 Ps 73 Porter’s Analysis - 5 Forces 55
CONCEPTS & Concept Selection Methodology 75 The Kiosk (Hut) 111 03 Key Performance Indicators 77 • Departures Terminal – Landside – Ground Floor INTERIOR DESIGN Proposed F&B Concept Mix 79 • Gate 8 – First Floor Concept Selection 79 The Kiosk (Mobile) 119 F&B Concepts Positioning 81 • Gate 1, 2 or 3 – First Floor Fried Chicken – Food Court – First Floor 83 • Gate 20 – First Floor Asia – Food Court – First Floor 87 • Gate 22 to 25 – Ground Floor Mezze – Food Court – First Floor 91 Vending Machines 125 Giraffe – Transit Area – First Floor 95 Mobile Application 127 The Business Lounge – Transit Area – First Floor 103
04 CONCLUSION Alpha Selling Proposition 129
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01 ALPHA GROUP 01 ALPHA GROUP TODAY ALPHA GROUP Group Structure:
Alpha has two major divisions, Flight Services and Retail. The Flight Services Division prepares in-flight meals, offers security and other services such as equipment management, and handles in-flight retail. The Retail side operates airport concessions such as restaurants. Flight Services Division, which accounts for more than half of turnover and two-thirds of employees, operates at more than 60 airports in Europe, the Middle East, Australia, and the United States.
Alpha Group provides over 50 million meals each year to over Shareholders, Joint Ventures and Subsidiaries: 150 airlines from 61 units / kitchens in 10 countries: Europe Alpha was a public company incorporated in 1994. Effective USA from 31 December 2010 dnata acquired 100% of Alpha Flight Australia Group Limited. Middle East / Asia Alpha Flight Group Limited has joint ventures with Tarom, Royal Jordanian, LSG and Air Arabia.
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01 Owned Brands and Franchises for the Retail Division ALPHA GROUP
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01 Flight Services Division
Flight Catering Equipment Management Delivery and service of all onboard requirements including Provision of services for the management of equipment for Service Portfolio & catering, beverage, retail and store items and on behalf of an airline ALPHA GROUP
Customer List Bond Services Compliance Management Warehouse stock management of retail and consumables, Outsourced quality assurance systems, audit and control for packed into bars standards, administered and delivered for the airline industry – food safety, security, health and safety complementary or retail on board Crew Retail Training Frozen Entrée Manufacture Training flight crews in techniques of selling on-board From our dedicated unit at Stanley Green in Manchester, products and the retail range the manufacture and distribution of hand assembled meal entrees
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01 ALPHA GROUP MILESTONES
A Story of Success ALPHA GROUP From 1955, 60 Years of Continuous Growth
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01 Our Stakeholders
Air Arabia
Born on February 3rd 2003 out of a decree issued by the Sheikh results during 2014. Its participation in Alpha Flight Services ALPHA GROUP of Sharjah, His Highness Dr. Sheikh Sultan Bin Mohamed UAE together with Alpha Group was established in May 2007 Al Qassimi, effectively modeled after leading American to support and enhance the quality of on board catering needs. and European low cost airlines model customised to local It’s knowledge and understanding of its passengers, gives preferences and needs of the growing expatriate population Alpha Flight Services the superior advantage of delivering to 47 across the UAE, Air Arabia was to become the first successful Air Arabia passengers the food and beverages they expect and Million low cost airline in the Middle Eastern region. more. Air Arabia became profitable after its first full year of operation Passengers Flown in 2004. Since, profits increased considerably, in 2014 reaching a history high of 46% percent annual growth and a record net profit of AED 566 million.
Air Arabia, based out of Sharjah in the UAE, pioneered the low- cost carrier (LCC) model in the Middle East, being the first to introduce it successfully in the region. Its fleet today consists of forty-four aircraft, which flies to over 100 destinations around the Middle East, Russia, Fly China and the Indian Sub Continent.
In 2014 Air Arabia opened its second base, at Ras al Khaimah, the Northern airport of the UAE, covering new routes to Cairo Over in Eqypt, Lahore, Islamabad and Peshawar in Pakistan; Jeddah in KSA; Muscat in Oman and Dhaka in Bangladesh. The core competitive strengths of Air Arabia include its first 100 mover advantage, its ability to quickly scale up, a young fleet, high utilisation of its aircrafts, its strong and established brand, Destinations its established and effective distribution network, its efficient low cost base and highly favorable home and regional market dynamics. Air Arabia investments are to be found across a variety of aviation activities in 7 companies, all delivering profitable
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01 dnata
Born in 1959 as the Dubai National Air Travel Agency, providing ground handling, travel services and associated businesses to the new Dubai Airport, dnata first joined the airline catering business in 2004 through the acquisition of CIAS, a ground handling and airline business in Singapore. From Singapore, ALPHA GROUP dnata gradually acquired Alpha Flight Services Australia as 117 well as a 50% share in Wings South Africa and EnRoute, a Million Meals niche bakery and snacks provider in the UK. into the Sky In 2014, dnata owns 61 business units in 12 countries providing airline catering, on-board retail, event and hospitality catering, institutional catering, product and development. Every day dnata’s 27.000 employees around the globe uplift meals, service aircraft, move cargo, handle baggage, help people with their travel plans and ensure they reach their final destinations.
Over Its global leadership in the catering business was attained and maintained by introducing the best technology, infrastructure 40 and personnel. dnata’s aim is not to become the largest of the world players, but desires to ensure that its customers receive Restaurants the best value in terms of service and quality.
2014 dnata recorded strong revenue growth of 36%, reaching AED 10.3 billion, with 60% of its revenue being resulted from its non-UAE operations. In 2014-15, dnata catering marked new record revenues of AED 2.0 billion, a 7% increase over previous year. This growth came from new contracts that have been awarded, which increased the number of meals uplifted to 46,6 million, a 13% increase compared to 2013.
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01 Our Catering and F&B International Footprint
Alpha Operates ALPHA GROUP Food and Beverage in 4 Airports Located in the U.A.E., Jordan, Bulgaria and Romania.
61 Airports Worldwide for Catering 4 Airports Worldwide for F&B
• Americas: 1 • Romania: 1 • UAE: 1 • Asia / Pacific: 11: • Bulgaria: 1 • Jordan: 1 • Europe: 44 • Middle East: 3 • South Africa: 2
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01 7 Success Habits in Airports Business
1. We have a very good knowledge of consumers who 2. We have a deep respect for local and regional cultures Consumer travel Alpha ingrains itself into the regional culture to create and Our teams continuously analyse the behaviour of our customers develop original concepts with a strong identity, which are ALPHA GROUP and the reasons why they choose our food proposal over the used to define a balanced programme that is a source of Culture competitors; they study the food choices and try to understand success. This is certified by several experiments carried out in the consumer patterns in order to ensure the availability of the different airports. Our experience enables us to identify trends desired food choices, in a wide availability of choices and at the at the local level and thereby the concepts and brands that are highest standards of quality. emerging and are having high growth potential, allowing us Brand Alpha serves millions of customers everyday, which enabled to create innovative partnerships. Alpha closely works with us to develop a minute knowledge of the consumers who selected local operators to help them adapt their concepts travel: their purchase habits, their preferences and the brands to the constraints linked with the complexity of the airport Experience that they like and to which ones they are loyal. Thus, while environment. This vision helps us in offering original solutions, expanding our activity in airports in different countries where which are very attractive for people who travel and constitute a we are present, we have been able to develop a large “Airport strong identity for the airport that receives them. consumer” database and develop a highly precise analysis tool, Service “analysis by zone” We segment the airport into commercial areas and periods of the day. Next, we analyse the impact of some factors, such as Follow Up traffic variations, flight schedules or delays, linked for example to the weather, upon the behaviour of consumers in each zone. This helps us offer programmes capable of being customised to changing environmental conditions, to exactly meet the Adaptability expectations of travellers and to anticipate their requirements.
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3. We know the power of brands with good national and 5. We are known for our involvement and for the 01 international reputations excellence of our services
The dining and service concepts selected for incorporation in Our site directors have several years of experience in the our offers are chosen from the ones that are the most popular concession dining business and have an in-depth knowledge in each country and most effective for the specific segment of the needs and expectations of consumers in concession of travellers. They will enrich the offer of local brands that by spaces. All our executives and our employees receive a fast- themselves are not adequate to satisfy the consumers and track training in welcoming and serving the travellers. ALPHA GROUP maximise the revenue, as the consumers are very attached to the brands that they know and in which they have confidence, 6. Our work does not end when the points of sale are especially when they travel. These brands give out recognisable inaugurated and reassuring signs that are a guarantee of an experience that is known and appreciated. By harmoniously joining the Training of personnel, mystery client, promotional operations, synergies of the local and national brand names, we create a animations, etc. - everything is implemented to optimise the dynamic mix of concepts customised to the specific nature of performances of the points of sale, at all times and at all each airport. levels, with the help of the support teams at the head office. We constantly monitor the development of the activities and 4. Our experience in designing and styling the points of contribute to its improvement and enhancement. sale 7. Our experience enables us to regularly change the It is this experience that enables us to create attractive and efficiency criteria of different concepts to optimise their inviting environments for consumers, which are harmonious performances with the values and style of each environment. We give you dynamic concepts, fully dedicated towards the We manage our own construction process and our relationship satisfaction of customers who travel. For airport authorities, with our partners to guarantee delivery of the points of sale Alpha’s actions are the guarantee of minimum exposure to with the announced quality levels and within the deadlines and risks inherent to a highly specialised activity such as dining at the budget assumed. airports.
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01 Know-How in Airport Business Development
Alpha, armed with its own experience and with the help of analytical tools and the understanding of its environment, is capable of implementing a strategy for permanently customising its offer and its set-up to suit the changes around it: ALPHA GROUP Analytical Capabilities Benefit of Alpha in the Development of new Locations Unparalleled Unparalleled understanding of the traveler, location by location: Best use of space for concessions Understanding • Domestic versus International • Right mix of food and beverage concessions: Sit-down • Short-Haul versus Long-Haul restaurants versus fast food of the Traveler, • Leisure versus Business • Proper locations for food and beverage • Special and different needs of Hub Airports, Hub Airlines Location by and Hub-Connecting Passenger Pre-Security and Post-Security planning • Extensive knowledge about travelers buying habits • Pre-Security: Proper level and type of concessions for Location • Constant research and comprehension of consumer trends meeters and greeters and farewell and good-bye groups • Zone analysis • Post-Security Area, two types of passengers: Originating and Connecting have different needs Segments each location into several commerce areas and day parts Analyzes how factors impact consumer behavior in each zone
Best Use of Space for Concessions
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01 The Story Behind the Changes
Same Spaces, ALPHA GROUP New Shapes
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01 ALPHA GROUP
Fueling Alpha’s Offer with Tailored Architectural Designs
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01
Enriching ALPHA GROUP Passangers On-Ground Travel Experiences with Franchise Brands
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01 Mobile Application
Customer Loyalty, Flight Tracking & OOO Notifications Henri AppPort was been launched officially on October 24th 2014. ALPHA GROUP At the press conference the most important tv and radio stations, 45 newspapers, magazine, bloggers were present. The Ministry of Downloads in transportation was also represented. The app provides access to all the airport’s information and First 7 Months services, the main purpose being to relax the passenger. They can check their flight status, from anywhere, and they will receive notifications about any changes (check-in open, boarding, gate changing, delays, etc), all in real time. They can also find their route to the gate using the interactive airport map. The map contains all the point of interest inside the airport. We are collecting data for our database in order to get: • Consumers acquisition habit, in detail (for each customer we have full acquisitions details) • Frequent flyers routine (acquisitions, preferred locations, frequency) • Rush hours – daily, weekly, monthly (we can focus on happy –hours strategy) • Receipt average value in app analysis (significant increase) Also, we evaluate the up sell performance of each cashier.
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01 Alpha in Sharjah
Alpha / Air Arabia Joint Venture Flight Catering Center
In Sharjah we operate a Joint Venture with Air Arabia as our We started to operate through our new flight catering centre ALPHA GROUP partner and have a long term concession agreement with which is designed to meet the future needs of Sharjah‘s Sharjah International Airport Authority encompassing Flight dynamic aviation market on July 2010 which has the following Catering, Retail Catering, as well as the capacity for Outside facilities: Catering. • Full catering production facility including in-house Bakery, 2007 Pastry Shareholding: • Comprehensive range of ancillary services including Alpha Flight • Alpha Flight Group Limited 49%* Laundry, Dry Cleaning, etc. • Air Arabia 51%* • 24 hour operations Services * Commercial agreement reflects 50/50 • Laboratory Starts Operating at Sharjah Employee Strength Flight Catering Services International As of May 2014, Alpha Flight Services UAE LLC employs 490 Our flight catering services are provided to more than 18 Ariport peoples of 29 different nationalities, speaking 40 languages. Airlines operating out of Sharjah International Airport and including Air Arabia, Air India, Air India Express, Egypt Air, We are committed to staff retention; training and internal Gama Aviation, Thomas Cook, Lufthansa Cargo, Atlas Air, promotions to ensure our employees remain motivated and Uzbekistan Airways, Singapore Airlines Cargo, Etihad Airways provide the highest standard of services to our customers. Cargo, Jet Airways, Midex Airline Cargo, RUS Aviation, United Aviation, AHS Aviation, Maximus Air Cargo, Aviation Transport Services and others.
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01 Secured Catering Centre Quality Assurance
Landside premises by Company Security staff and CCTV. Alpha is a world leader in compliance, actively participating in Airside premises by Sharjah Police Department as per the the creation of World Food Safety Guidelines for the aviation Alpha Flight following: industry. Services was • Our employees are checked by Police before going Airside During our years in Sharjah International Airport and as our ALPHA GROUP • Airlines meals, carts & containers are scanned by the commitment to excellence we have obtained the ISO 22000 & awarded X-Ray machine and sealed by Police Department. HACCP Certificate.
ISO 22000 & HACCP Our Quality Assurance Department is monitoring and ensuring the following: Certificate • Goods receiving • Cooking • Portioning & tray set-up • Storage • Food safety while dispatching • Food samples • General cleaning • Staff hands swabs for microbiology tests • Laundry services
*All Tests are done in our Alpha Sharjah Laboratory. *SGS & Sharjah Municipality also maintain the regular general checking and control.
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01 Our Vision: Driven by • To be recognised by our customers as the most innovative Excellence in in flight catering and travel retail specialist in the world. • To be a relentlessly efficient business partner and maintain Fulfilling Our those operating standards we are known for. • To be a source of exciting branded eating experiences, to
Customers be enjoyed by consumers and the travelling public. ALPHA GROUP Expectations Other Catering Services:
In adition to flight catering and F&B outlets we provide the following other catering services: • Alpha Flight Services UAE L.L.C. is the accredited business partner of UAE Government and we are registered in the Purchasing Electronic System of the Ministry of Finance. We have been providing subsidised catering services to Ministry of Social Care (nine care centres) since 2011 and Ministry of Education since September 2014 (currently total of 18 schools) as well as provided several catering assignments for Police. • Outside Catering facilities including: • Banqueting, special functions and events (birthdays, anniversaries, parties etc); • Contract catering (offices etc).
Alpha Flight Services UAE L.L.C. is proud to be the preferred catering partner and food services provider at Sharjah International Airport, operating various retail brands at the terminal building, including World News Cafe, Café Med, Catalina Cigar Lounge, CIP Lounge, Cuisine Xpress, Transit Hotel. Alpha Flight Services UAE L.L.C. also operates other outlets in Sharjah such as Catalina Sports Lounge and WNC at the Consumer Protection Department.
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FACTS FINDINGS & MARKETING 02
Pillars of Differentiation 02
General Market Overview
With a growth rate of 4.28% per cent in 2014 and an estimated GDP per capita of AED 164,300 (2014 estimates), the United FINDINGS & FACTS MARKETING AED Arab Emirates is ranked as one of the richest economies in the world. With a population of only 9.3 millions, its annual gross domestic output reached in 2014 over AED 1,526 billion. Successful economic efforts and sustained investments diversified the economic split and have reduced the GDP based on oil and gas output to 25% of its domestic products, 1,526 bringing more balance to the United Arab Emirates economy. Billion GDP The remaining wealth is coming from services, aviation and The United Arab Emirates includes a wide variety of ethnic tourism. groups, out of which 19% are Emirati, 23% other Arab and Indian, 50% South Asian, while other expatriates (Western 7 emirates split into administrative divisions: Abu Zaby and East Asians) represent about 8% of the population. In the (AbuDhabi), ‘Ajman, Al Fujayrah, Ash Shariqah (Sharjah), UAE the migrant workers make up to 85-87% of the active % Dubayy (Dubai) Ra’s al Khaimah and Umm al Qaywayn form population. The annual growth rate of the population is 2.71% the United Arab Emirates. The government type is a federation as per 2014 estimates with a median age of 32 years old. The with specified powers given to the country’s federal government urban population represents 84.4 % of the total population 4.28 while other rights and privileges are reserved to member (2011 census) with the major urban areas being split between Annual emirates. It’s federal capital is Abu Dhabi, with a population of the main cities of Abu Dhabi, Dubai and Sharjah. The labour approximately 700,000 inhabitants and the national symbol is force, by occupation, is split mainly as follows: 7% agriculture, Growth Rate represented by the golden falcon. 15% industry and 78% services.
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Aviation Trends in the Arab World – Gulf Carriers Overview
In spite of the radical changes and severe losses we have revenue passenger kilometres with 11% more in 2013 over seen in the aviation market dominated by the Western carriers 2012. One of the most remarkable achievements for the Arab during the past five years, the Arab carriers maintained overall carriers is the record growth in cargo, reaching a 14.6% annual a positive trend, continuing to grow year after year. Economic growth in 2013, continuing their growth in 2014. activity in the Arab world decelerated in 2014 as oil production 160 declined and geopolitical challenges remained overwhelming. These figures represent some of the highest in the world, 2014 The main alarming economic indicator in the Gulf region being a year of continued growth and maintained leadership. Million remains the inflation factor which reached 10.5% in 2013, while The Arab air transport market added 14 million passengers 02 the global inflation has fallen to a mere 3.6%, down from 3.9% in 2013, while passengers to, from and within the Arab world Passengers in 2012. The United Arab Emirates managed to overcome the reached 156 million, compared to 142 million in 2012, a 9% high inflation, and since 2009 has maintained a steady 1.5 -2 % growth. A reflection of the 2014 collected by the Arab Air annual rate. Carriers Organisation data indicates a yearly growth of 11.3%. FACTS FINDINGS & FACTS MARKETING
The aviation industry recognises two main reasons for the The fleet composition is extremely balanced, with an even positive evolution of these airlines, these are: the uniquely split of 44% between narrow body and wide body aircraft, 8% strategic geographical position, allowing direct connections regional aircraft and 4% freighters. to any corner of the globe, and the exquisite value in services while providing the traveller a unique experience in the air as well as on-ground. Arab airlines have continued to grow in absolute numbers of passengers, 7.5% in 2013, improving its
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Aviation Sector in the United Arab Emirates
Worldwide, for the aviation industry, 2014 was a year of growth Middle East and Far East, and that the United Arab Emirates and rebalance, after turbulent economic times that weakened will continue its positive trend. the financial output for the majority of the airlines. But for the United Arab Emirates aviation industry, we can say that 2014 With such tremendous output, and expected annual growth of UAE was a year of milestones, the country handling over 101 million 7%, Dubai International Airport is expected to reach its capacity 101 passengers through its most renown airports. Dubai, Abu of approximately 90 million passengers that the two current Dhabi and Sharjah handled 99.8 million passengers amongst runways can handle in less than three years. Million them, an increase of 8 million passengers when compared 02 with 2013, resulting in 9.2 % annual growth. Over the past To encompass this growth, Dubai has approved a AED 117 Passengers few years, United Arab Emirates airlines have grown in reach, billions investment in the Al Maktoum International Airport currently operating scheduled and cargo flights to more than and the related Dubai World Central, a new airport investment 100 destinations on five continents. located at 15 kilometres from the existing airport. The expansion plans for the airport consider the development of four additional runways, two passenger terminals with four concourses dedicated to the cargo facility, a total capacity
after completion of over 220 million annual passengers and FINDINGS & FACTS MARKETING 16 million tonnes of annual cargo. The accomplishment of this project will position Dubai as a world leader and true capital of world aviation.
2014 was a record year for the development of Abu Dhabi Airport as well, that reached an annual growth of 20% due to the traffic growth of its incumbent carrier Etihad Airways, totalling approximately 20 million passengers. Due to the differentiating strategy of its incumbent airline, Abu Dhabi airport is perceived as a long-haul travel hub, with traffic projections that reflect an even sharper growth than its rival airport of Dubai. The outlook for the next 2 years looks positive and forecasts indicate a 40% DUBAI In 2014 Dubai International Airport, through its main airline, has 70.5 growth, reaching 30 million passengers in 2017 and over 40 almost tripled its passenger numbers, managing to surpass Million London Heathrow (68.1 million passengers), becoming the millions in 2020. world’s largest airport for international passenger traffic, Passengers handling 70.5 million passengers. Such changes in the growth patterns of the aviation world, together with the investments aligned with broader national economic objectives, mark the true statement that the future growth will come from the
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Fleet Development
The total fleet of aircraft of the Arab carriers reached in 2014 a largest wide-body airline in the world. In 2015, the airline is total of 1144, 75 more aircraft than in 2013. Boeing forecasts expected to add 15 additional A380s, 10 more B777-300ERs that the Middle East will require 2950 new planes, worth an and 1 B777 freighter, bringing it to a total fleet of 254 aircraft. estimated AED 2.348 billion over the next 20 years, while 900 UAE aircraft will be replacing existing fleet. Etihad’s 10 additional routes in 2014 were supported by the 436 addition of 22 new aircraft, receiving its first Airbus 380 and 2014 was a successful year for all UAE based carriers, with Boeing 787-900, 3 Airbus 330-200, 3 Airbus 321, 3 Airbus 320, Passenger the most significant additions in fleet being made by the four 6 Boeing 777-300ERs and 5 Boeing 777-200LRs. main carriers: Air Arabia, Emirates Airlines, Etihad Airways, Aircraft and flyDubai. The total UAE commercial fleet to date, excluding In its only 5th year of operation, flyDubai, the low cost hybrid 02 business aviation, consists of 436 aircraft (including Rotana Air flying out of Dubai International Airport, has also increased and Royal Jet), representing approximately 50% of total Arab its fleet by 8 Boeing 737 aircraft, in dual-class configuration, airlines fleet. reaching a fleet of 43 aircraft to date. The outlook for 2015 fleet size is to reach 50 aircraft. FACTS FINDINGS & FACTS MARKETING
Air Arabia, the first low cost company from the UAE increased its fleet in 2014 by 9 more Airbus A320 and expecting to receive 6 more in 2015, reaching a total fleet of 44 aircraft, and expects to place new orders in 2015 of either Airbus Neo or Boeing Max for the upcoming years.
Emirates Airline alone added, in 2014, 27 aircraft: 13 Airbus 380s, 12 Boeing 777-300ERs and two Boeing 777 freighters, thus reaching a total fleet of 232 aircraft and becoming the
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Sharjah Economic Overview
Strategically situated between the coast lines of the Arabian Gulf of import and export duties and no income taxes. The on- and the Indian Ocean, the emirate of Sharjah stands out as an shore companies registered in Sharjah also benefit from a tax rd industrial hub with a world class infrastructure, being the only haven, as there is no income tax applied. Middle Eastern economy where no single sector contributes to more than one-fifth of its GDP, an enviable position for its As Sharjah continues to develop itself as an authentic 3 highest level of diversification and lack of dependency on a tourist destination, in the next couple of years, demand for single source of economic growth. accommodation is expected to grow at a 6.2% per annum, Fastest Growing producing a higher demand than the potential supply. The Sharjah is also the third fastest growing economy in the United average annual occupancy rates for the past three years have Economy in UAE Arab Emirates, attracting almost a quarter of the business varied between 73% and 80% per annum for hotels located 02 establishments, mostly medium and small businesses, within the Emirate. reaching a sustained annual growth of up to 6% even during past crisis years. The 2014 GDP reached AED 113,700 per In the food and beverage industry, the vast majority of existing capita, almost triple its value compared to 2005 (~ AED 40,000). restaurants are concentrated within 6 areas of the city of Sharjah, the most prominent and developed being Al Majaz Waterfront 45,000 small and medium companies form a diversified and Al Qasba. The average number of restaurants reached economy, where manufacturing represents 19%, real estate around 1,050 establishments, with an average expenditure per and development services 17% and trade and repairing capita varying from AED 625/capita per month for the younger FINDINGS & FACTS MARKETING businesses amount for 13%. generations up to AED 2,000 per capita per month for people over 55 years of age. The sector is still underserved, with The favourable regulatory environment is given by the creation strong demand for new food and beverage outlets, from fast of Free Trade Zones that offer 100% freehold ownership for food facilities and shops to fine dining restaurants, throughout foreigners, 100% repatriation of capital and profits, exemption the Emirate.
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Current Market Assessment
Sharjah Airport Positioning
Sharjah International Airport (SHJ), the home base of Air Arabia, the oldest and most successful low-cost carrier in the Gulf region, has positioned itself apart from the business models of its two larger competitors, Dubai and Abu Dhabi Airports, focusing on simplifying the travel experience and a seamless 02 9.5 passage through the airport. 2014 meant a new runway worth AED 500 million, a volume of 9.5 million passengers, 70,559 Million movements and an annual growth of 12%, coming mainly from the new routes and additional frequencies opened by Air Passengers Arabia, which generates over 80% of Sharjah’s traffic.
Being the third largest airport in the United Arab Emirates, The Master Plan for the future developments of the airport,
Sharjah International Airport is expected to reach approximately FINDINGS & FACTS MARKETING envisage facilities that will streamline passenger movements 16 million passengers by 2020. Its geographical position, North through the airport, and maintains its position as a regional of Dubai, in the vicinity of the touristic destinations, makes it an leader in terms of low-cost airports. ideal location to absorb passenger potential from the busier Dubai Emirate, especially passengers looking for no-frills Being one of the region’s leading air cargo hubs, Sharjah flights and easy access in and out the United Arab Emirates. International Airport handled in 2014 over 295,000 tonnes of freight, servicing more than 250 companies and airlines.
The major achievement for Sharjah airport came from the opening of a new runway, taxiways and air traffic control % centre in autumn 2014, enabling its main carrier, Air Arabia to benefit from uncapped growth opportunities. The new runway facility was developed to handle the largest aircraft available on 12 the market that will ensure Sharjah, for the next decade, the Annual second position in the United Arab Emirates in terms of cargo Growth Rate handling. With improved and uncongested facilities and proximity to the city of Dubai, Sharjah International Airport will slowly capture the private and business aviation sector.
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Sharjah Future Development
Given the extraordinary growth of all of the three main airports Arabia maintenance facility and additional parking surface. in the United Arab Emirates, Sharjah International Airport The plan envisages the creation of a dedicated area (village) is adapting its capacity needs to the extension plans of the for the hosting of the supporting businesses within the airport incumbent carrier, Air Arabia, while keeping a controlled gap zone, where the catering business of Alpha Flight Services is 14 2017 between its needs and market potential across the region. expected to move. Under His Highness Dr. Sheikh Sultan Bin Mohammad Al The 2020 extension will be comprised of the reconstruction Million Qasimi patronage and Bechtel’s experienced management and refurbishment of the existing areas of the airport, further the airport developed its 2030 Master Plan that is designed to expansion of the terminal towards the west of the south zone Passengers provide the needed infrastructure for the 14 million passengers of the airport, the construction of multi-level parking facilities 02 expected to cross through the airport by 2017, and 25 million and the expansion of the commercial areas with new access passengers by 2025. roads.
After adding a new ICAO type F runway, capable of allowing the operation of the Airbus A380 aircraft as well as offering the movement capacity for the long-term growth, by 2017 the 2025 Master Plan envisages the extension of the existing terminal 25 to the west of the south zone of the airport, the introduction FINDINGS & FACTS MARKETING of a new terminal loop road with dual level curbs, a new Million general aviation facility east of the Ruler’s Hangar, a new Air Passengers
For the benefit of Air Arabia, the number one customer of Alpha Flight Services as well as of Sharjah International Airport, the extension of the terminal capacity should be developed in a linear path with the passenger and fleet growth the carrier can add annually.
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Current Air Travel Demand at Sharjah by Airline
Throughout 2014, Sharjah International Airport (SIA) attracted 43 airlines connecting Sharjah to 86 destinations for both passengers and cargo. The 74 passenger destinations are being served by 31 airlines, Air Arabia being the most preeminent of them all and handling almost 80% of the airport’s traffic.
With 9.5 million passengers, in 2014, Sharjah International Airport handled 9.4% of the total UAE traffic, being the most 02 regional airport of the main three.
Its cargo operators use Sharjah as an industrial hub that connects 12 important cargo destinations around the world. On the passenger side, with very few exceptional routes Singapore Airlines Cargo uses SIA to reach out from the UAE to operated by Thomas Cook to Stockholm and Phuket, or by Air London, Brussels, Singapore and even Dallas, while Lufthansa Arabia to Kenya, Ukraine or Istanbul, 34% of flights focus on offers a bridge of connectivity between Frankfurt and Hong an exceptional coverage of the Arabian peninsula and Middle Kong. East, reaching as far as Lebanon, Jordan or Syria, 17.5% offer FINDINGS & FACTS MARKETING connectivity to India while 8.7% reach out to destinations in Pakistan or Northern Africa.
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Porter’s Analysis – 5 Forces
In our effort of understanding the environment under which Alpha Flight Services is planning to develop its investment, we have analysed, using Porter’s Five Forces model Sharjah airport’s competitiveness and capacity of securing the expected return on investment in the fore coming years. 02 FACTS FINDINGS & FACTS MARKETING
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Catchment Area and Passenger Description
The catchment area of the airport is one of the most important factors to be considered when analysing the growth potential, as the catchment area is the territory encompassing the airport zone that will be able to generate traffic flow. The traditional data from around the world shows us that passengers are 7 willing to travel by alternative modes of transportation for about one to one and a half hours in order to access air travel. Such Million time distance calculations are always to be evaluated when 02 there are competing airports in its radius that could determine Population in Reach passenger volumes to choose otherwise.
Analysing the United Arab Emirates map, and the proximity of the three main airports, while considering the traffic constraints around the Dubai metropolitan area, we can justly consider that Sharjah’s extended catchment area would stretch from FACTS FINDINGS & FACTS MARKETING
Ras Al Khaimah to Al Fujayrah and Al Ain, reaching out to a total population of over 7 million people, approximately 80% of % country’s population. Considering UAE’s uniqueness in terms of geographical 80 positioning, from Sharjah airport one can reach within 8 hours of UAE in flight up to 2/3 of the world population, while 1/3 of the world’s population can be reached within 4 hours of flight. When Catchment Area adding this information to our analysis we can assume that the growth rate of UAE based airports will increase in a much for accelerated mode than most airports similar in size located in different parts of the world.
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Sub-Market Segmentation
The geographical positioning of Sharjah, at only 20 minutes In terms of gender, the split in the travel market associated to north of Dubai, completely overlapping with Dubai’s population the low cost carriers in the catchment area is mostly comprised % gives access to a mix of population, whose spread within of male business travellers, representing an average of 91.7%. ethnic groups is 19% Emirati, 8% Western, 23% other Arab and This gender distribution closely reflects the pattern in the UAE Iranian and over 50% South Asian. where male expatriates have a predominant presence in the 19 labour market. With respect to age distribution, over 75% of Emirati In terms of origin, the most preeminent volume of expatriates, low cost carrier travellers were less than 50 years old, the mainly workforce, come from India, Bangladesh and Pakistan, exact opposite found in the group using legacy carriers in the representing 50% of the total population, followed by Egyptians UAE, where over 60% of passengers were over 50 years old. 7% and Philippines 5%. Following the Egyptian diaspora, the 02 approximately 250,000 Jordanians and 100,000 Palestinians The workforce distribution amongst low cost UAE travellers % form the most important community of non-citizens coming is 33% travellers working in administrative jobs with 42% of from the Arab world, those holding middle management positions, while 26.5% of travellers are self employed, a larger percentage than in the 81 The geographical positioning of Sharjah, only 20 minutes case of legacy competitors. 66,7% of low cost passengers Expats north of Dubai, in the centre of the living area of the migrant work in companies with less than 100 employees. workforce, appeals to many of the Dubai budget conscious FACTS FINDINGS & FACTS MARKETING workforce travellers to use Sharjah, a less crowded and quicker airport to arrive and depart into the United Arab Emirates.
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Demographics and Socio-Economic Characteristics of Passengers from Catchment Area
Given the demographic split of the expatriate population, as well as the similarities amongst the first three categories, we have studied the socio-demographic characteristics of the first, the Indian migrants and have identified that 35% of them come from the region of Kerala, followed by Maharashtrians, Gujartis and Goans. 56% of the Indians in the UAE are Sunni Muslims, followed by 26% Christians and the rest Hindu; over 90% of 02 them are male.
The social life of the Indian workers in the Gulf is highly segmented. In most cases they live away from the areas inhabited by the native Arabs and tend to develop their social life away from home in their specific living areas, limiting the expenditure of their hard-earned income. In addition to having their travel requirement and accommodation paid by FINDINGS & FACTS MARKETING the employer, the average income per worker varies between AED 1,000 and AED 1,400 and in the vast majority of times is sent home to families. The economic relationship between the workforce communities and the UAE is merely symbolic being based on expenditures strictly related to the basic living needs.
Based on a study developed by Aon Hewitt in 2014, the gross salaries in the UAE are expected to grow with an annual average of 4.8%. Even though the manual labour and migrant workforce receives a minimal pay, the monthly salaries in the UAE range between AED 1,000 and AED 90,000, with a fair average ranging between AED 13,600 and AED 17,600. Bangladesh, Sri Lankan and Indonesian workforce receive the lowest salaries by demographic split, being closely followed by the Indian workers. The highest paid manual workforce is coming from Philippines and reaches a monthly salary of AED 1,400.
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Brand Awareness
Brand Awareness is a marketing concept that enables especially in the area of Health and more Asian oriented marketers to quantify the levels of knowledge of consumers eateries, the current market being dominated by smaller, about a certain brand’s existence. Awareness stands for the family owned food outlets. percentage of potential customers who recognise a given brand. Brand recognition increases the likelihood of consumption and When evaluating the brand presence in the airports of Dubai is a dominant factor in purchasing choices. and Abu Dhabi compared to the current services offered by Sharjah Airport, there is a considerable difference. With a dominantly immigrant population coming from the When analysing the opportunities for the future F&B offerings Indian peninsula and South East Asian markets, the United we kept in mind the significant differences in the demographics Arab Emirates businesses can access a wide variety of tastes of the passengers that are currently using the three airports, as 02 and choices of foods. When looking after the main sources of well as the type of traffic: the larger two being predominantly its food requirements, we have identified that 85% is being connecting hubs with different customer needs, while Sharjah imported. Nevertheless, when evaluating the general brand being a predominantly point to point service. presence in the Emirate of Sharjah we have identified a fairly small presence of international brands with major food and Upgrading the level of service and food outlets image in beverage brands being represented by: Starbucks, Appelbee’s, Sharjah International Airport will be assimilated by passengers Chili’s, Donkin’ Donuts, KFC, Mc Donalds, Friday’s, Nando’s, as an improved travel experience overall, increasing customer Chopstix, Tim Horton’s, Russo’s and Sumo Sushi. This analysis loyalty and preference. FINDINGS & FACTS MARKETING indicates that there is a wide availability for development
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Existing Brands 02 at the Three Major UAE Airports FACTS FINDINGS & FACTS MARKETING
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Air Travel Purchasing Habits
When studying the air travel purchasing habits of the When assessing the low cost airlines passengers, who passengers from the catchment area defined previously, were mostly young male passengers, working in middle we have identified that the short and medium haul (up to management or administrative positions, the aspects they % five hours flights) passengers traveling on low cost airlines have valued where quantitative, and were tied to the price of form a fairly distinct market segment than the ones using the fare and ease of purchase. 58.3 the more traditional legacy carriers. The two categories of UAE Companies revealed substantial differences in terms of demographical The scope of travel of the majority of the low cost travellers segmentations, company travel resources and scope of travel, is visiting home and relatives and return to their countries of also Choose Low as well as a different booking behaviour. origin; the smaller proportion travelling for business purposes have a marketing and sales objective 25% or external meetings 02 Cost Travel In terms of travel out-source 73.9% of United Arab Emirates 31.3%. based companies use legacy carriers only, while 58.3% allow for low cost travel as well. 18.7% of the travellers that were When acquiring the flight ticket 66.2% of travellers book it by studied stated that their companies do not allow low cost travel. themselves out of which 41.7% through a travel agency. In terms of booking channels used, for those who book their own While both categories of travellers shared similar ratings to travel, 43.5% of the travellers use the airline’s website, 10.1% product elements as punctuality, safety and service quality, the the airline’s Call Centre and 40.3% use a travel agent. legacy passengers place more value on comfort, frequent flier FINDINGS & FACTS MARKETING program affiliations, lounges, valuing the traditional frills and the qualitative aspects associated to travel. %66.2 Book Low Cost Travel by Themselves
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Qualitative Analysis – Customer Perception over Sharjah Airport
In today’s aviation sector, customer satisfaction it became Emirate. Only at Sharjah Airport 45% lived in Sharjah while crucial and a true measure of a company’s profitability giving the rest of the respondents came from a different Emirate, its competitive edge and also abundance of service, when thus showing us the above mentioned conclusion that a new thinking about the UAE. Customer satisfaction generates segment of travellers has emerged. The overall results of the affective bonds and causes loyalty in the airport – passenger tests indicated that passengers were mostly satisfied with relationship. the services offered by the airports, Dubai coming up as best airport followed by Abu Dhabi and Sharjah. Satisfying a flying passenger it is not easy as it involves a 02 multitude of stakeholders that individually, but perceived as When regarding the lesser scores received by Sharjah these one, need to cater for their needs from the moment of booking came mainly due to: until the end of the journey and delivery of their bags. In this • Airport ease in reaching specific gates or passing through mix of services and suppliers, from airline to ground handler, immigration which seemed to be better communicated at airport infrastructure, immigration and not least food outlets the other two airports than Sharjah; and duty free shops, the role of the eateries and small coffee • Lesser quality of food service and shopping facilities offered shops must not be understated. Lesser communication and customer service availability at
Sharjah compared to Dubai and Abu Dhabi FINDINGS & FACTS MARKETING When analysing the socio-demographic structure of the • Difficulty in reaching Sharjah airport due to traffic jams and passengers travelling from Sharjah International Airport, major delays on road for people coming from Dubai and the gender mix, the ethnic segmentation and the purchasing other areas that are not the city of Sharjah habits of air travel, and comparing it to the network carriers • Respondents considered that the immigration facilities at that dominate the UAE market, we can come to the conclusion Sharjah could be improved but are still better performing that the low cost passengers using Sharjah Airport for their than at Abu Dhabi airport but less performing compared to travelling needs have created a new segment of travellers, Dubai; who either did not travel much or did not use other methods • Lack of transit support staff and facilities, especially for of air transportation, before using the low cost model of transits longer than 24 hours transportation. As with any study the results must be considered in relation Studies performed by Embry Riddle University in 2013 have to the scope of the analysis, which was to evaluate the overall looked at the consumer’s satisfaction at UAE airports. They satisfaction of passengers. The overall results showing that have asked the sample passengers questions linked to the there is a positive approach of passengers towards the level entire journey through the three main airports of UAE: Dubai of quality of services, nevertheless, while comparing with the International, Abu Dhabi and Sharjah Airport, through the leading two airports of Abu Dhabi and Dubai International there usage of questionnaires. Approximately 50% of those surveyed is a gap which is perceived by the customers. lived in the Emirate where the airport was located, while the other half were coming into the airport from a different
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Demand Forecasting
When looking at the short-term future of aviation, all evidence When looking at the movement’s data and at the daily shows that the United Arab Emirates became and will remain departures published by the ICAO ATM forecast, we see that the the epicentre of the globe, this growth being driven mainly by annual movements are expected to reach 320 daily departures the AED 28 billion investment in the Dubai World Central, that is by 2020 and 525 daily departures by 2030. to become the largest intercontinental hub, after the completion 16 of its second phase of development, forecasted to handle 126 million passengers by 2020, and expected to further grow to Million 220 million handled passengers by 2030.
Passengers by In this aviation driven environment, Sharjah is expected to 02 maintain its position, as the main low cost airport in the 2020 region, with its future growth mostly attributable to Air Arabia, its incumbent carrier. During the 2015 - 2020, Sharjah International Airport is expected to maintain an annual growth rate of 5,8 – 6 % per annum. FACTS FINDINGS & FACTS MARKETING
% When looking into assessing the passenger growth we can see that at a steady 80 load factor maintained by its incumbent carrier, keeping in line with the future acquisition plans of Air Arabia, 6 as well as with the published forecast of ATM movements by International Civil Aviation Organisation, Sharjah International Annual Growth Airport is to exceed 16 million passengers by 2020 and 27 Until 2020 million passengers by 2030.
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Ideal Product Mixt – 4Ps
The product mix is the essential marketing process that outlet in the terminal being the food on board, a lower price will help deliver the desired product to the customers while option of meals “to go” should be available and at quick reach. generating the expected return to the suppliers. When considering the Place, the best positioning of the Considering the current infrastructure of Sharjah International food outlets, they should be positioned through the airport’s Airport, and the expansion plans to increase the passenger walk through areas within the terminals. Studies show that terminal by 2017, we can state that the existing services and food outlets available in the gateway can reach higher sales food outlets will become insufficient to satisfy the growing volumes than those located in designated food courts, where volume of passengers with will to spend. When analysing the passengers need to specifically walk to and food courts must 4Ps: Product, Price, Place and Promotion, we focused on the compete amongst each other. 02 expected growth coming from the passenger mix of Air Arabia, passengers with fairly low incomes and specific demographics. The current positioning of the food outlets as proposed by Alpha Flight Services are well distributed with the majority The successful Product, what is being sold, should reflect the of the value proposition being attained through the locations cultural values and tastes of the passengers mix, with focus available in the departures lounge. These locations are on Indian, South Asian and Arabic foods. The meals should be ideally scattered throughout the terminal, limiting the need to focused on both Vegetarian and Meat based cuisine bringing excessively compete against each other. an upscale feel and look to the traditional restaurants and food FINDINGS & FACTS MARKETING outlets that are typical to this segment of the population. With Promotion stands for the usage of the appropriate an innovative architectural layout and reflecting the tastes communication techniques to bring awareness to the and flavours of the passengers’ culinary behaviour Asia and passengers about the existence of the shops and about the Meze will bring the value proposition of the newly refurbished personal value obtained by choosing Alpha’s food outlets over Alpha food outlets. The brand proposition should come from competing shops. The most competitive mode of bringing the chicken and beef based fast food chains like KFC and customers to the desired shops is by generating the need McDonalds, while easy enplanement meal choices should be to purchase the meals from the above-mentioned locations available at lower prices than in the aircraft. before reaching the departure gates. Such communication tools, being under the form of discount With the average net income of passengers varying between vouchers available on the electronically generated boarding AED 1,000 and AED 13,000 per months, we can consider passes of customers or the usage of key visuals to signal the Sharjah International Airport passenger cost conscious, Price proximity of the food outlets can be of great value, and can drive being the second most important element when choosing a the customer’s choices towards one of the indicated brands. food outlet over another. The main competitor to the food
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CONCEPTS & INTERIOR DESIGN 03
Concept Selection Methodology
One of the key success factors in maximising customer In terms of passenger segmentation we have identified satisfaction and revenue is delivering a robust concept and that the airport has already established itself as a leader in tailored plan. The main objectives in developing a successful the regional and low cost market, trend that will be surely concept are: maintained for the next decade.
1. IDENTIFY THE NEED. Due to the rapid growth of the UAE 3. KNOW YOUR CUSTOMER. Alpha’s extensive experience aviation sector and the 2020 world exposition event that will in airports operations and having detailed knowledge mark a milestone in the evolution of this intercontinental of its existing passengers helps achieve this objective. aviation hub, Sharjah International Airport is developing Our research identifies the food category preference the extension of its infrastructure to manage the expected (menus and product lines), brand awareness within those growth, in line with the developments taking place at categories and a preferred style of service. The research the competing airports in the UAE. Such changes in the analysed the demographic profile of passengers and business are ideally aligned with a refreshed look and feel included key attributes as available dwell time, travel for the food outlets managed by Alpha Flight Services. habits, age, income, reason for travel and many others.
2. IDENTIFY THE MARKET AND ITS GROWTH POTENTIAL. 4. ENSURE AN OFFERING IN LINE WITH THEIR DEMAND. 03 The expected growth in passengers and size in the coming Our analysis indicates that the ideal output is a balance years will bring an additional 4.5 million passengers to between the nationally recognised (product) brands and Sharjah by 2014, making the business plan feasible with regional or locally recognised (product) brands that will a promising return of investment for the upcoming years. appeal to the majority of the passenger base. This mix will enable the highest levels of passenger attraction. CONCEPTS & INTERIOR DESIGN
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Our study analysed and identified the right number and type of concepts to ensure that there are enough points of sale to complete transactions during the peaks throughout the day. Analysing the peak travel times at Sharjah International Airport, indicated that On-Going the busies times are in the morning, afternoon and evening schedule, resulting in the need for concepts that address the morning/ Performance lunch/breakfast day-part. The study determine the right size of the food outlet concepts to ensure that the service system can function efficiently to deliver Measurement food, expedite the transaction, and provide enough seating capacity for the size of the market. in Each Location
03
Key Performance Indicators
The most prominent indicators of brand, menu or product system-wide. If a concept is under performing it will be known acceptance is the sales performance of a concept. Alpha tracks and a specific consumer research is triggered at the airport to
the sales for each individual concept on a half hour basis to determine the exact cause of underperformance. CONCEPTS & INTERIOR DESIGN measure efficiency in service speed and appropriate staffing levels. In few cases, the consumer behaviour did not meet the expected returns, and food outlets did not appeal to customers in the Alpha also tracks the performance of every concept in each way envisaged. In those situations Alpha has demonstrated a airport it operates on a monthly, periodical and annual basis. willingness and ability to quickly react, and change concepts This enables us to measure the performance of each location that underperformed. in Sharjah International Airport with comparable locations
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Proposed F&B Concept Mix Concept Selection
Given the wide passenger mix that Sharjah International Alpha brings forward concepts that are on the cutting edge of Airport handles on a daily basis, with strong presence of the nation’s trends. The knowledge and expertise of its concept New Concepts: Arabic, Indian and South Asian passengers, the mix of concepts team are harnessed into the customised concept plan for should satisfy the sophisticated needs of both international and Sharjah International Airport that we propose herein. FRIED CHICKEN, domestic travellers along with the needs of the staff working at the airport. The passenger survey conveyed at Sharjah International Airport ASIA, MEZZE identified that fast food franchise and Asian food are mostly Based on the previously mentioned concept selection preferred and desired by customers. Additionally the Mezze & GIRAFFE methodology and the available data on Sharjah’s International (Arabic) and the Asian (Thai and Indian) cuisine address the Airport passenger profile, Alpha has specifically developed specific needs of the local customers, ranking high amongst a concept mix that will reflect consumer preferences in this choices. rapidly changing sector, changes that have a significant impact on the food and beverage market. Applying its international experience in the Food and Beverage market, after having carefully analyzed the aviation trends and passenger demographics at Sharjah International Airport, Alpha’s proposal to the passengers consist of Fried Chicken, Asia and Mezze concepts in the food court, Giraffe Restaurant in the transit area, mobile or Hut type Kiosks in public area and large remote gates and a series of Vending Machines placed in strategic locations and individual gates where passengers already passed a custom control. 03 Managing food and beverage shops in airports is both a science and an art and needs specific know how and experience. Alpha has worked in various environments of airports throughout the world, including many of the world’s large airports. The flows and patterns of the international and domestic passengers, their meeters & greeters and airport staff are significantly
different to those of the food and beverage operations on the CONCEPTS & INTERIOR DESIGN street and in shopping malls.
Alpha’s understanding of operating multiple sites in this type of multinational environment has been a success story that culminated in the company being recognised in airports success stories, as a food and beverage leading operator throughout the world.
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SHARJAH F&B Concepts Positioning INTERNATIONAL AIRPORT
03 CONCEPTS & INTERIOR DESIGN
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FRIED CHICKEN
Concept:
The world’s most popular chicken menu presented in a new layout concept for a quick service to match specific airport Food Court customers.
Fried Chicken is an attraction for its original recipe of crispy chicken, grilled chicken and crispy strips with home-style sides, hot wings and freshly made chicken sandwiches.
03 CONCEPTS & INTERIOR DESIGN
1st floor
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03
Menu:
Fried Chicken’s original product consists of pressure fried chicken pieces, seasoned with herbs and spices. Food Court The constituents of the recipe represent a notable trade secret.
Larger portions of fried chicken are served in a cardboard CONCEPTS & INTERIOR DESIGN “bucket”. Fried Chicken will expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks.
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ASIA
Concept:
The concept of “Asia” is the reflection to the fusion of two Asian cuisines: The South West Cuisine (India, Pakistan, Sri Lanka and Burma) and the South East One (Thailand, Laos, Cambodia, Vietnam, Indonesia, Malaysia, Singapore and Brunei) in an open kitchen with “live wok cooking” by specialised authentic chefs respecting the traditional and original Asian customs.
Food Court 03 CONCEPTS & INTERIOR DESIGN
1st floor
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Menu:
A diversified South Asian cuisine consists mainly of curry based meals, prepared with either yogurts and coconut milk, with rice as a common element to both types, in addition to leavened and unleavened breads and egg noddles. Garlic and ginger are also used, as are chili peppers and soy sauce in nearly everything in addition to cinnamon from Sri Lanka, cardamom and cumin from India. In the South East, there are additional flavorings that are not used in the other cuisines – Fish sauce, galangal and lemon grass. The cooking utensil is “the wok”, and the stir fry technique using vegetable oils.
Ingredients: Curry pastes and powders, chili paste, coconut milk, tamarind liquid, rice, ginger, garlic, sesame seeds, dried onions, soy, and tofu.
Food Court 03 CONCEPTS & INTERIOR DESIGN
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MEZZE
Concept:
The “Mezze” concept is an original and unique design reflecting a modern aspect of the oriental architecture cuisine. It joins the mixture of the traditional Arabic restaurant with the quick service food, uncommon for the oriental types of restaurants. To respect the traditional mood of socialising while having lunch, family lifestyle meals and the freshly made dishes, all major meals are prepared in a “live cooking kitchen”, on request by clients, in very short time, by specialised oriental chefs.
Food Court 03 CONCEPTS & INTERIOR DESIGN
1st floor
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The Concept is like the food, “Mezze” is an array of small dishes Menu: 03 Food Court placed before the guests creating a palette of colors, flavors, textures and aromas. Oriental cuisine is the complex simplicity Entry (mezze) such as the tabbouleh and fattoush salads, and freshness that relies on the product of the sun, the sea and together with dip such as hummus, lebneh, baba ghanoush the land. It has the sophistication and subtleties of the European and moutabal. Some patties such as the Sambusac stuffed cuisine with the exotic flare of Middle Eastern ingredients. with grape leaves, cheese and meat.
Main course such as the grilled shish taouk, kafta, kebbeh, falafel and shawarma. Baked manaeesh and lahm bil ajĩn. CONCEPTS & INTERIOR DESIGN Dessert, such as baklava, kunafi and drinks such as: ayran, limonades, jallab and arabic coffee.
Ingredients: Includes an abundance of starches, whole grain, poultry, lamb and goat meat, olive oil, herbs, garlic and lemon are typical flavors found in oriental cuisine.
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GIRAFFE
Concept:
Giraffe is an international franchise. Its ambiance is relaxed Bright, inviting and innovative, the signature Giraffe style is and joyful giving the perception of a fun restaurant where ever-present in the contemporary yet comfortable interiors Transit Area everyone is welcome to enjoy breakfast, brunch, lunch, dinner with great drinks, global music and a family-focused menu and drinks - all day every day. filled with fresh, healthy dishes. Service at Giraffe is always as bright as the modern, unique interior.
03 CONCEPTS & INTERIOR DESIGN
1st floor
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Giraffe is an award winning, funky, global, all-day restaurant that provides customers with a fun and friendly, mouth- watering global experience that delight and amaze passengers on their journey through the airport. Itis a group-friendly chain, welcoming place, where a smile goes a long way.
The Giraffe concept is simple. It’s about freshly cooked, global food, great people and music guaranteed to make you feel good. It mixes freshly cooked food for everyone, served by our happy and friendly team, to the sound of great chilled music.
“Giraffes Are so Tall They See a Different View of the World”. 03 CONCEPTS & INTERIOR DESIGN
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It is about exploring the wonderful foods from around the globe and opening our ears to music.It has a family-friendly reputation, smiling faces and good value food. We play ‘Putumayo’ world music and our menu is focused on the best bits from around the world.
First Giraffe restaurant opened in Hampstead, north London in 1998. Since, the company opened 47 locations in the UK, including franchised sites at Heathrow, Gatwick and Manchester airports, as well as two locations in the United Arab Emirates, its first location in Abu Dhabi in Yas Mall and another one in Dubai.
Guaranteed to Make You Feel Good 03 CONCEPTS & INTERIOR DESIGN
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Menu:
The menu, made on site in under 15 minutes, is inspired by enchiladas; and breakfast pancakes. An early-bird menu and the best flavors from around the world - includes must-have Bar Buddies are deal sweeteners, and the Italian house white Fast and Fresh brunches, stacked high burgers, fresh salads, steak & grills wine is a success story to be tasted. together with hand roasted coffee, healthy smoothies and a Serving our gourmet coffee and a selection of Tea pigs flavors selection of cocktails, beers and global wines. This selection from morning ‘til night, the bar also provides a refreshing equally challenges the adventurous eater and comforts selection of fresh juices and fruit-filled smoothies to keep traditional tastes. customers sweet. Giraffe serves its legendary brunch; formed of stacked high The menu is filled with breakfast items, salads, sandwiches burgers, stir-fries, Mexicana dishes, healthy salad bowls, and more. ribs & steak alongside cool cocktails, expertly made coffee & Signature dishes include the farmer’s market burrito, fish and smoothies. chips and the hot Thai duck stir fry. Best dishes tend to be classics: a generous torpedo roll of One unusual aspect of Giraffe’s menu is that it lists allergens minute steak; the house bacon and cheeseburger; Chili beef and nutritional information of their dishes. 03 CONCEPTS & INTERIOR DESIGN
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THE BUSINESS LOUNGE
Concept:
Designed by the prestigious Lebanese design architect, Alain meters of high standard comfort. Business passengers will Bakhache, our lounge promises to offer a stylish environment feel at home as they settle down to work, relax, dine or catch Transit Area with plenty of privacy and space, rivaling in terms of quality of up on the latest news. It includes fantastic facilities including passenger experience with major airports in the world. comfortable lounge seating, business centre facilities and The proposed layout unifies the existing two lounges, offering Internet workstation that are Wi-Fi enabled. a new and luxurious experience, spreading over 540 square
03 CONCEPTS & INTERIOR DESIGN
1st floor
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Transit Area
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540 sqm of High Standard Comfort CONCEPTS & INTERIOR DESIGN
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The New Business Lounge promises to redefine the world Redefine standard in airport lounge experiences. Passengers would enjoy the wide gastronomic range of the World Standard international cuisines in the ‘feel-good’ ambience before their 03 flight. Carefully designed zones help keep families entertained in Airport Lounge with free-to-use iPads that are available to use within the lounge. Experiences The Facilities and Services: • Rest areas • Private quiet work/meeting room
• Business center facilities CONCEPTS & INTERIOR DESIGN • Free wireless internet • Social facilities • A signature dish menu with healthy snacks and drinks • Bar service • Cigar lounge • Sophisticated business/banking services • Local and International newspapers and magazines
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03 Menu:
Expanded hot breakfast menu offering a choice of boiled eggs and baked eggs to accompany bakery and sides and a wide range of dishes that take advantage of freshest seasonal ingredients and inspiration from cuisines around the world, delicious sandwiches and hot snacks service and a range of sweets and ice cream all day long. Chefs are committed to CONCEPTS & INTERIOR DESIGN using quality products and the best of local ingredients.
The bar will serve a wide range of soft drinks, wines, beers and spirits as well as teas and coffees along with snacks and treats such as crisps, nuts, cakes and biscuits.
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THE KIOSK (HUT)
Concept: Menu:
The hut type “kiosk” is designed to serve an area with a large All major items are displayed and fresh, served by the existing demand of passengers for a “grab & go” service in crowded personnel, with possibility to heat and toast on demand any Departures places or where the customer have the choice to sit and cooked food or sandwich. Fresh juices are also possible. consume the products. Displays for candies and chocolates will be placed on the Terminal It is designed to display a large range of hot and cold items, with counter. multiple choices for beverages. It is easy to lock for overnight An automatic coffee machine will serve all types of hot coffee, without moving any products from the displays or counters. hot chocolate and tea.
03 CONCEPTS & INTERIOR DESIGN
G.F.
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Departures Terminal
03 CONCEPTS & INTERIOR DESIGN
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Kiosk on Gate 8
03 CONCEPTS & INTERIOR DESIGN
1st floor
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Kiosk on Gate 8
03 CONCEPTS & INTERIOR DESIGN
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THE KIOSK (MOBILE)
Concept:
The mobile “kiosk” is designed to serve quick demands, easy to move and to install. The concept design is based on the image Kiosk on Gates of a cart, usually used in outdoor purposes in parks or fairs, 1, 2 or 3 adapted to the special needs of the selling point. In a very limited area, Hot/Neutral display will be placed with personnel service and an open front fridge will serve all needed food & beverages pre-packed for a “grab & go” service. All depositary needs will be under the counter in an easy range for quick lock when kiosk is not needed. A few high tables with high stools for consumers will be used in front of the Kiosk for customers.
03 CONCEPTS & INTERIOR DESIGN
1st floor
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Menu:
All items are pre-packed, in presentation displays with possibility to heat any cooked food or sandwich. Displays for candies and chocolates will be placed on the cart. An automatic coffee machine will serve all types of hot coffee beverages.
Kiosk on Gate 20
03 CONCEPTS & INTERIOR DESIGN
1st floor
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Kiosk on Gates 22, 23, 24 & 25
03 CONCEPTS & INTERIOR DESIGN
G.F.
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VENDING MACHINES
Concept:
Displayed in approximately 12 to 15 locations on the ground floor and the first floor throughout the airport, the vending machines are covering areas where passengers are in a hurry to grab a snack or a drink and at some gates where once pre-boarding is performed the passengers are out of reach of any coffee shop or restaurant.
03
1st floor Menu: A full-line vending concept may set up several types of vending machines that sell a wide range of products.
Products may include candy, cookies, chips, fresh fruit, CONCEPTS & INTERIOR DESIGN sandwiches, milk, cold food, coffee and other hot drinks, bottles, cans of soda, and even frozen products like ice cream.
G.F.
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Mobile Application
Concept:
By downloading the mobile app of Sharjah International Airport the time before boarding will be as rewarding as the rest of your trip. Get notified when your flight status changes, keep the airport map at hand and earn discounts in airport restaurants & cafes.
Never lose a flight while being in the terminal, never get lost or feel stressed before boarding. Complete up to date information about changes of all flights.
Menu:
Flight Board Restaurants & cafes See flight schedule and status for Read their descriptions, evaluate and Departures and Arrivals, with instant write reviews. updates. 03 Flight Tracking & Flight Notifications Service outlets Choose your flight and receive push Shops, ATMs, pharmacy - any service you notifications when its status has changed. need, one tap away.
Airport Map Invite friends Locate your check-in point and gate, as They will catch their plane, while enjoying well as restaurants and service outlets. airport time. Invite them and you get CONCEPTS & INTERIOR DESIGN loyalty points, which turn into discounts.
Discounts Download the app - and you reached the first discount level in all airport restaurants&cafes! Enjoy discounts as they get bigger and bigger.
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CONCLUSION 04 Alpha’s Selling Proposition
As one of the leading global companies in the aviation food The food sampling is further enriched by the development of and beverage industry Alpha’s business vision consists in Giraffe Restaurant, a happy place where service rivals food developing customisable brands and food styles for each quality and tastes, and where passengers can benefit from individual airport. Our success resides mainly in our capacity of a seated serving. Kiosks and Vending Machines uniquely adapting to the realities and cultural heritage of each individual designed to fit into the airport’s setting will complete Alpha’s country or region and in embracing change while putting all offering to Sharjah’s International Airport passengers. With needed efforts in developing new brands, brands that will meet this mix, Alpha brings forward concepts that are on the cutting the expectations of the customers, we so proudly serve. edge of the nation’s trends, rivaling the major airports of Dubai and Abu Dhabi food and beverage offerings. The uniqueness of our proposal resulted after carefully analysing the market, the passenger profiles, the history Managing food and beverage shops in airports is both a science and the future of Sharjah International Airport in order to and an art and needs specific know-how and experience. Alpha deliver a robust concept and a tailor made plan. The detailed has worked in various environments of airports throughout the marketing study employed by Alpha Flight Services together world, including many of the world’s large airports. The flows with its previous experience in Sharjah International Airport, and patterns of the international and domestic passengers, supported our decision to include in our proposal an outlet mix their meeters & greeters and airport staff are significantly that satisfies all tastes and budgets. different to those of the food and beverage operations on the street and in shopping malls. By getting an expert eye on the cultural background, analysing the passenger flows and demographical structure of customers, Alpha’s understanding of operating multiple sites in this innovating in the kitchen and implementing the food concepts type of multinational environment has been a success story aligned in perfect harmony with the architectural designs, we that culminated in the company being recognised in airports consider the mix between the finger food offered by our Fried success stories, as a food and beverage-leading operator Chicken, as a specialised kitchen in poultry products, the Thai throughout the world. - India dishes proposed by Asia and the more local Arabian 04 flavors served in Mezze, an ideal offering.
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Disclaimer
This report has been prepared in good faith on the basis of public information aeronautical industry, development of new technologies, currency fluctuation available at the date of publication with independent verification and and financing options. The readers must be advised that the change of the crosscheck of public data. The provisionary data presented herein, relies on mentioned elements of risk could alter the development of the aeronautical information provided by Alpha Flight Services and its provisionary content industry in the United Arab Emirates. is represented by specific terminology and use of verbs in future tense, or key words like “estimates”, “plans”, “intentions”, etc. By their nature, such The layouts and design proposals contained within this report are reflecting terminology, or any other provisionary phrases oblige the readers to admit the architects and consultants opinions and their suggested solution at the that there are an unlimited number of factors or risks that can arise during moment of issuing the report, opinions which could be altered should major the period where future estimations have been made, changes that can alter changes in the aviation business environment occur. All Concepts, designs the results and future growth figures. and images presented in this report, are displayed for perspective purposes and are subject to enhancements in accordance with the project evolution Although, architect Alain Bakhache considers that all assessments and and development. estimates presented are reasonable based on the data currently available on the market at the moment of research, it must be taken in consideration that Except for the limitations imposed by law, architect Alain Bakhache expressly these figures could be slightly altered should any modified data be released declines any obligations to revise periodically the report and alter it to reflect by the relevant airport and aviation authorities. any changes in the business environment such changes being under the responsibility of the beneficiary. Some of the risks that could alter the results presented in this report include risks associated to the economic environment and financial development of This presentation is strictly confidential and cannot be distributed without the the Middle Eastern region and not only, operational risks associated to the explicit consent of Alpha Flight Services under any circumstances.
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