Proposal

On

Food & Beverages Spending at Cinema in UAE with an Indian Audience

1. Introduction

1.1 Research Background

Over the last ten years, a raising amount of movies and films from the UAE have entered the
international film festival circuit. Because of the very high production costs of the cinema
movies and films, and the need for funding in the area, most of the financing for the Middle
East films is given by European public funds. Around the 1910s, movie theatres opened in
various Middle Eastern countries. In the 1940s just a very few films were taken by the
individuals and the local services and facilities were in adequate, until the Arab states in the
Middle East got independence. The late 1960s marked a shift not just in Arab film making
alone (Neidhardt, 2011). Revolutionary movements attained strength throughout the world.
From the Middle East, many of the films that have been getting broader international exposure
in the past ten years are Palestinian or Israeli. All of them are coproductions and predominantly
deal with subjects in which Europe associates with the area, called war and terror and
occupation as the catalogue of the award winning films above replicates.

In the past few years, the Indian Entertainment Industry is considered to be one of the highest
growing industries of the Indian economy travelling on the economic growth and development
and increasing revenue levels in which India has been experiencing. The Indian Entertainment
Industry is likely to considerably advantage from such rapid economic growth and
development, as this regularly sensitive industry raises quicker when the economy is
developing. When the revenue increase, proportionately more resources catch spent on
entertainment and leisure than on necessities and requirements (FICCI, 2005). But for the UAE
consumers, dining and entertainment sustain to be significant priorities, in accordance with the
findings of the recent MasterCard survey on the Consumer Purchasing Priorities-Dining and
Entertainment (Emirates 24/7 News, 2011). And entertainment sustains to be highly rated,
with two in three consumers of UAE having watched movies in cinemas and one in two UAE
consumers having visited theme/amusement parks in the recnt times. Captivatingly, more
males (72%) than females (59%) wish to go to cinema. The most popular entertainment choice
for the consumers of UAE were gymnasiums/health club (29%) and live programmes and
performances (14%). In the second half of 2011, the peak entertainment priorities for the
consumers of UAE emerge to be watching a film at the cinema (65%), going to theme or
amusement parks (47%) and visiting the health club (32%). On the whole, the consumers of
UAE spend 13 per cent of their personal monthly income on hobbies, leisure and personal
entertainment.

Figure 1: UAE F&B market size (US$)*

Source: KPMG, 2015.

Figure 1 illustrates the food and beverage market size in the UAE. In the UAE, the F&B market
is likely to sustain to see a very strong development and growth in the predictable future. The
F&B market in UAE has increased by nearly 5% between the years 2013 and 2014
predominantly driven by a raised number of transactions. The growth and development of the
outlet has been driven by a combination of spreading out of existing chains and new concepts
and brands entering the UAE market. such extension has been more fuelled by the sustained
investment in a number of large and new retail destinations. Local investment in latest F&B
ideas, positive economic factors and overseas chains and a sustained development and growth
in tourists, all recommend that the F&B market in the UAE would continue to flourish.
Film is considered to be an essential outlet for leisure and entertainment in the MENA region,
even though less so in the sense of really going to the cinema. Less than half of the residents
in the area ever go the cinema (45%). Again, there is great distinction by the country; the
mainstream of residents of the UAE go to the cinema, whereas only a few in Tunisia do (82%
vs. 15%). Younger people are the most likely to see movies by means of all formats, cinema,
television, disc and online. Three-fourths of the users of the Internet see movies online, and
four in ten do so as a minimum of once a week (75% and 42%, correspondingly). One-third
says they will be liable to pay to download or stream films (33%) (NUIQ and DFI, n.d).

There was a period when going to see a filme or movie also incorporated stopping for the dinner
before or after the movie show. But in the past few years, all the cinemas halls heve changed
theri menus to the exent that they are at present at par with cafes and restaurants in terms of its
variety and quality (Lal, 2016). The entire idea is to offer the services and facilities of a
restaurant in the cinema hall, and even to make sure that the food is comfortable to have whiel
watching the film or a movie. By extending the menu, cinemas have nearly put an end to the
viewers skipping food in the theatres and visiting to food courts. Whiel the cinema theatres are
extending their menus and employing and engaging the the hospitality staff in order to provide
customers a natural and wholesome experience, they also generate considerable gains and
profits from it. Cinemas also have to share the sales of the ticket profits with the production
houses of the films, but they use to have nearly all the prifit and income form selling the drinks
and food. The income or profit from the food and beverage is far greater than from the sold
tickets. For the each and every ticket sold, a cinema theatre receives just 25% of the income or
profit, whereas for the food and beverages, the gain is roughly about 50%. There will be no
theatre business without the food and beverages.

The UAE particularly has one of the greatest worldwide rates of attendance of cinemas for an
individual. But the sales of tickets are just the part of the story. But the sale of advertising, food
and beverage are essential to the cinema industry. the income of advertising has been
reasonably static in the region. In 2011, in the first five months, the advertisers spent $9.8m in
cinemas in Bahrain, Lebanon and in the UAE, in accordance with the monitoring company
Ipsos MediaCT. That was to some extent less than in the similar period last year. But which
was compensated bu the snacks sales that is much more profitable for the industry (Flanagan,
2011). In the UAE, to watch a movie costs about Dh30. Of which, the cinema holds about half
and the rest going to the distributor of the movie. That is why the income from the snacks is
critical. Internationally, one can see anything from 70 to 100 per cent of the share of cinema of
the ticket price as gross income for the food and beverage. In spite of the rosy vision for the
cinema industry, the market faces so many challenges. The first is Ramadan, at that time the
ticket sales, which drop by about 80 per cent, and the second is censorship, certain movies are
largely and heavily cut or banned in the UAE. In the UAE, the greatest factor influencing the
fortunes of cinemas is totally out of control.

VOX Cinemas:

VOX Cinemas at Mall of the Emirates (UAE) provides the greatest blockbusters utilizing the
best and the new in comfprt and technology. With VOX MAX, one can enjoy the blockbusters
on a bigger screen with comfortable seats and surround sound or undergo a latest and new way
to watch the films or movies with VOX GOLD, premium cinema with a fashionable lounge,
waiter service, extensive menu and fully sprawling seats (Mall of the Emirates, 2017). VOX
Cinemas is completely owned by Majid Al Futtaim Group. They started their business in order
to offer the superior levels of quality and entertainment to the people (VOX Cinemas, 2017).

1.2 Problem Statement

As said by the Food and Beverage (F&B) report released by the universal property advisor
CBRE, the residents of UAE ranked the third largest F&B spenders universally in shopping
malls, pursuing their equivalents in Switzerland and Norway. F&B reports for nearly between
10-20% of the Dubai retail mix, with this weighing likely to raise to nearly 25-30% in the next
five years, as F&B sustains to play a suspiciously significant role to the shoppers in the UAE.
In the Emirates, they have upgraded the F&B in the leisure and entertainment attractions such
astheatre by Rhodes’ Michelin Star food at VOX Cinemas and the three cafes at Ski Dubai;
and made a greater level of dining with exceptional standalone restaurant ideas next to retail
outlets all the way through the Gourmet Gulf partenership (CBRE, 2016). In the UAE, demand
for higher cookery experiences would sustain and they need to make sure that they are
exceeding such expectations in order to deliver success for both the retail industries and F&B.

2. Literature Review
Alia, (n.d.) researched about cinema industries in UAE. Two decades ago, there were hardly
any cinema theaters in the UAE, except some deprived cinemas screening Bollywood movies
for particularly Indian male residents. At present, there are progressive multiplex cinemas
screening to crowded viewers. Regrettably, there are almost no UAE movies taking on that
show time. On the other hand an enormous unparalleled capital amount is being spent into the
big screen business by a promptly increasing number of public and private picture production
concerns, for example the $1 billion-financed Image Nation in Abu dhabi. Author explored
that, the rising visual communications programs in the UAE in light of the educational, societal
and economic prospects and limitations that are a function of the UAE.

Kearney, (n.d.) reviewed about media and entertainment industry in UAE. While the film
industries make a great effort globally, the UAE is offering a positive effort. The Pan-Arab
media business is developing more rapidly than the financial growth in common, at around
19% every year, from both online and offline networks increasing and even complementing
each other. The application of the industry to financiers is likely to last to develop as UAE
customers pay out more discretionary income on media and regime spend in the sector, east
systems and procedures and shrink the hurdles to entry. As the inclination of Arabian
government investment extents more extensively around the county media towns are being
generated accompanied by a releasing of regulatory backgrounds and the film industry all
together is extending across the Middle East.

Roque, (2013) stated that feature movies are the most widespread cultural terms globally, with
viewers of around 7.5 billion individuals per year. General audiences and viewers are
progressively exerting an extensive mode of media like smartphones and tablets to watch
cinemas. Simultaneously, the film industry has had to deal with the influences of the economic
disaster of the year 2008, which hindered development and progress in several sectors of the
frugality. It had been important to identify what have been the influences of the digitization of
the film sector. It centers on the influence that expanding digitization of movie creation and
display has had on the sector.

Rajesh, (2008) stated that Indian film industry gained considerable growth in the last two
centuries. In general, it is quite a long history of almost around ninety years, with the primary
trembling screen pictures become a multi-pronged and massive financial kingdom. At present
it is the largest film industry in the world with regards to quantity of movies which has produced
around 27,000 feature films and more number of documented films. Having recognized itself
as a business and being properly acknowledged as one, the country’s prevalent film has over
its path did a lot of evolvement in nearly all regions, for example retail sector, funding,
advertising and promotion. There is a vast Indian dispersion in nations like the Middle East
particularly in Abu Dhabi, UK, Canada and South Africa which all signify a large market for
Indian movies.

Alia, (2014) expressed that over a decade, the Arab countries has been violently initiating at a
domestic, government-economic level the invention of domestic movies while also inciting
Hollywood producers as a investor and production place. As a developed, prosperous country
still opposed about the way it describes itself to itself and the way it desires to be well-defined
unlikely its boundary and as a nation with no past in the visual and graphical arts of any type
and no film-going society until the late 90s the UAE offers a inimitable method to the structure
of a movie industry, one that is not stranded in earlier patterns of domestic film building.

Bouka, (2015) stated that the film industries in India have made a substantial growth,
particularly in these last two decades and as a result it is the largest universal film industry. The
main intention of this research is to define the financial development of a local market and the
influences of its internalization. Film industry in India could be handled as a model platform
for the expansion of concepts in the growth of activities of developing economies and markets.
This study, through a wide-ranging analysis in some papers, portrays Indian film industry as a
financial element for country and people’s development. The motives that headed to this
development are being expressed in a prolonged way, in addition to the function of
globalization and India’s dispersion on this growth. Lastly, it relates the two major movie
industries in the domain that are Hollywood and Bollywood.

Alfio, (2014) pointed out that the UAE is a developing country that possesses large oil
refineries, but has effectively no past of film or movie creation. The increasing need to witness
their own stories on the movie, joined with the requirement to expand a market which greatly
depend on oil-based business, has forced native government to spend intensifying funds into
the film business. In recent times, Image Nation which is government owned company
provided with a US$1 billion investment to confirm collaborations with universal studios
named Hyde Park Entertainment and Warner Bros. Film companies in UAE have presented
film productions and the returns from these overall accomplishments is being used to sponsor
and promote native inventions and training programs for the people who intends to produce or
direct films.
Piyush, (2012) researched about QSR (Quick Service Restaurant) industry in India. The most
general habits in both city and rural regions are going to the movies frequently, one of the best
and most reasonably priced entertaining possibilities. A few decades before traditional Indians
did not admire nightlife but when western culture came in the rules have changed completely.
Café areas attract so much of young customers and even they provide food and other beverages
(F&B) like tea and juices. And as a result they intend to use media and film industries which
are the mode to draw a huge number of customers.

Terri and Chris (2011) expressed that Middle Eastern movies are the invention of numerous
areas and countries, interconnected by a sequence of persisting subjects and recognized policies
that could be sketched over the entries in this research. Like media and entertainment sectors
all over the world, these movies should function in the shade of Hollywood’s leading pattern,
though viewers in several parts of the area have also had important limelight to Indian cinemas
particularly Bollywood. Egyptian movies at times stated as Hollywood on the Nile, is the
country’s’ largest industry, and traditionally has delivered movies and filmmakers to the other
region the Arab countries. Only in recent times UAE has started to develop as countries with
cinemas.

Sardana, (n.d) expressed that Bollywood is the major producer of movies in India, yet
provincial movies emulate with respect to quantity and quality of movie creation with the
majority of cinema. This industry survives since the Hollywood movies took place. Since 1960,
the country has been having the proof of making the extreme number of profitable movies and
also never failed to appeal the highest amount of audiences, however it is not able to compete
with Hollywood with regards to excellence and as well from the view of profits orientation. It
has outlasted for almost a century mainly because of a vast national marketplace, which in the
nonexistence of a contending alternate root of entertainment has delivered it with ability and
means through never-ending admiration.

Rajwant, (n.d) specified that India is the major film making industry in the domain and its
movies become well-liked and admired in several regions across the world. Bollywood is a
strong and effective vehicle which offers valuable and interesting data on history, evolution,
and development, diversity of cultures, principles, beliefs, socio-economics and political affairs
in many provincial dialects. Numerous people, regardless of their society and culture used to
watch Bollywood movies in several regions of the world. Currently cinemas directed in India
have grasped global attention and receive good responses among film lovers. In recent times,
there is being a positive vibration in the coproduction of Hindi along with English films by
both Hollywood and Bollywood film makers.

Everette, et al (2014) proclaimed that since 2011 Middle East country intended to evaluate the
significance and influence of media in the region and Arab revolutions have mostly absorbed
on the news media channels and their ability to distribute information and viewpoint. The
organized division considers a unique route. As the consumers prefer changes and the
occurrence of eating out is not quite extreme, the number of consumer needed to make cost-
effective business rises extensively. Currently, the UAE has the biggest box office in the
Middle East region, most of it produced in its two leading metropolises, Dubai and Abu Dhabi.

Jayant, (2014) specified that the media industry in Arab countries is experiencing an extreme
transformation. Social changes amongst the region’s youth generation have produced an
incredible creative power. Active implementation of mobile and smart phones technology has
generated prospect in media industry. In recent period, in UAE, the film industry underwent
essential fluctuations in the creation of its flicks and more divergence of its access styles. These
fluctuations demand regional media companies to reorganize their industry paradigms and
evaluate reserves in excellent local content, and provide universal competitors in specific a
motive to reexamine their occurrence in the region.

3. Aim and Objectives

3.1 Aim of the study

The key purpose of this study is to examine in detail about F&B spending at cinema in UAE
with an Indian audience.

3.2 Objectives of the study

i. To analyze the reasons for the lower spending on F&B at cinema in UAE
ii. To identify the factors that influences the buying decision of the customers at cinema
in UAE
iii. To propose strategies to increase spending on F&B at cinema in UAE

3.3 Limitations of the study

a) The findings of this research are restricted to Indian audience alone

 b) This study is limited to UAE alone
c) This study focuses primarily on “F&B spending at cinema in UAE with an Indian
audience”

4. Research design

The determination of the research technique is pivotal for what conclusions the researcher can
make about a circumstance. It influences what the researcher can say in regards to the cause
and variables impacting the situation. It is likewise imperative to pick a research strategy that
is inside the extend points of what the researcher can do. Time, cash, attainability, morals and
accessibility to measure the situation accurately are cases of issues obliging the research.

Research is a balanced and exact pursue for new and valuable measurable information that
focuses on an unequivocal point. It is an assessment of perceiving answers for which is specific
and in more aggregate issues the separation all through the reason and efficient examination. It
is a pursuit for relationship; that is, a recognizing the hid frameworks. In here, information
infers data and truths about segments (Rajasekar, Philominathan and Chinthambi 2006).

The examination paradigm followed by the investigator in this study is positivism research
paradigm. The data is collected by the researcher using close-ended questionnaires and the
examination will be done in numerical method. The individuals from the study are moved
nearer to respond to the questionnaires from their view point. Food and beverage foundations
can be separated into various sorts including fine-dining, quick service, casual and fast casual.
Every sort of hotels pulls in various clients contingent upon the experience they are looking for
and there are suggestions at menu costs, the quality of food and beverages, the quantity of
spreads (visitor served all things considered), climate and culture. Each of these topics has
suggestions on waste generation.

In a changing universe of asset consumption, a dangerous atmospheric deviation, expanding

contamination levels and high populace development, there is a developing need for
organizations to take a more clean state of mind towards nature (Teo and Loosemore 2001).
Given the food and beverage divisions commitment to waste generation, a behavioral/prepare
study was embraced, to recognize the obstructions to waste minimization. Past reviews have
given confirmation that the part of people appear to be overlooked in the waste administration
condition (Teo and Loosemore 2001), and in that capacity this study concentrated on the
operational procedures and individual commitments inside the work environment. The study
aims in finding the increase customer spending on F&B at VOX Cinemas, Deira City of Centre
Branch in UAE. To know more on this and to get complete evidence, the research uses
positivism method for the data collection.

The examination approach is the notice and the methodology that will direct the investigation
to the perfect way. Quantitative examination technique is the one that makes use of the post
positive cases for growing information, uses procedure of request, for instance, investigations
and notion surveys, and collects data on prearranged instruments that give in verifiable
information. Subjective investigation framework is the one, in which the researcher centers for
partner, and it is fundamentally a beneficial one. The researcher accumulates open ended;
promising data with fundamental desire of rising contemplations from the data produced using
a combination out of people's experiences (Creswell 2004).

This study uses numerical/quantitative investigation procedure. It indicates be relied on upon

arithmetical estimations of requesting parts of happening, and it gets from detailed
representations to search for ordinary research outline. Quantitative researchers get
suppositions and illuminations that will work to various spots and people. Noticeable
instruments of test frameworks and test methods are the characteristics of numerical techniques
focused on making generalizable outcomes.

According to Paneerselvam (2009), research papers are given an end card actually by giving a
point by point structure of the examination from the issue gathering to the course of action of
the examination enunciation. This structure of making out the investigation is called as the
examination layout. Examination framework is isolated into exploratory examination design
and conclusive research design. Exploratory examination procedures are formulative in
character.

The investigation plot follows the descriptive research method. This kind of course of action is
utilized to get the escalated estimation and response from the individuals. This kind of study
framework joins with a wonderful figure of recognitions. It investigates more questions and it
allows the researcher to settle on more correct decisions. The study is a numerical one and it
tends to explain taking after the hypothesis and thus descriptive method is chosen since it
supports both qualitative and quantitative approaches.

Sampling procedure is the system that is utilized to pick a vital and important and that too the
required respondents from the large gathering of people.The sampling method are divided into
two major sorts. They are probability and non-probability sampling. In probability, looking at
each unit from the members has a probability of being picked as a unit of representation
(Cooper and Schindler 2009).

This present study makes utilization of the random sampling to choose the participants. The
researcher picks the individuals by unpredictable numbers in light of the fact that the study is
numerical, the survey will be finished with are quantifiable datum. This sampling sort is taken
in which the units are picked in light of simple openness or usability.

The sample respondents for the current study are Indian customers of VOX Cinemas of UAE.
The sample size will be 350 respondents.

5. Data analysis and collection

Data is the primary setting and asset for any examination. It has the crucial impact and place
in the examination. The data is apportioned into primary data and secondary data.

Primary information is varying straight far from the examiner for some precise reason or study.
The sorts and techniques, for example, individual examination and/or surveys may be utilized
to accumulate the essential information. In this examination, the essential data is different
through the development of surveys from the Thane people to know about the microfinance
and its impact on poverty and employability.

The sample respondents for the current study are customers of VOX Cinemas of UAE. The
sample size will be 350 respondents. The Indian customers are approached and given with the
consent forms before collecting the data. Their true and genuine information will be used for
the development of the study.

The sorts and strategies, for instance, singular examination and additionally studies might be
used to gather the fundamental data. From the books of Churchill and Lacobucci (2009),
secondary data is the game plan of data that exists already in other forms and carried out by
other researchers. It will be indirectly involved in the current research. Secondary data is the
beginning of any research and it motivates the researcher to proceed further.

The point and attempt taken and used as a part of doing an examination is at last accomplished
only by evaluating and analyzing the data which is collected. With the assistance of
examination, the researcher can make sense of an illumination and help with a strategy to the
firm or affiliation that is joined with the study issue.

The quantifiable systems that are taken in the examination of the basic data to be collected are:

i. Simple percentage method

ii. Chi-square test
iii. Correlation test

The resulting instruments are utilized to take a look at the fundamental data collected and test
the organized examination hypothesis.

i. SPSS

SPSS is used as a piece of this examination to make the relationship tests. SPSS is a package
that support for the study based investigation and the results will respect numbers.

Two validation systems are utilized as a part of deducing the outcomes of this quantitative
study. They are validity and reliability.

Authors Taylor, Sinha and Ghoshal (2008) clears up the authenticity is the triumph with any
strategy that is utilized for the examination for assessing the data collected. If a methodology
is convincing, then assortments among the outcomes between the general population or
collection or firms can be taken as in light of a legitimate concern for honest to goodness
assortments in the parts of the examination.

Reliability is an unequivocal component for the data, and it implies the consistency of the
records that is taken for the precise reason of the examination framework. It is a review of the
degree that is consistent in the application underneath a similar situation.

From the authors Krishnaveni and Ranganatham (2009), moral thoughts in any examination
are to a great degree basic in the current conditions. Ethic is named as the ground of
examination into making sense of what practices are viewed as appropriate to particular
conditions, as prearranged by codes of activities that are arranged by the overall population.
The advantaged bits of knowledge and the technique, social orders of the theme will be dealt
with the examination are finished. The data collected will be taken for the examination work
and will be kept confidential.
6. Findings and Implications of the Study:

From this study, it is clearly identified that F&B market in UAE has been growing faster. The
entry of Indian audience in UAE cinema is one of the major reasons for the growth of F&B
market particularly in Cinemas. Most of the Arabs do not watch movies and at the same time
Indians in UAE spend their entertainment time by watching movies. As Indians enter into the
Cinemas in UAE, they spend money on buying food and beverages (F&B). Thus, the entry of
Indian audience in UAE cinemas has improved the growth of F&B in UAE. Here, 350 Indian
customers are surveyed in order to know about their spending on F&B in UAE particularly
VOX cinemas. Also strategies are proposed to increase the customer food and beverages
spending on VOX cinemas.

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