Abstract
Using a random sample of 485 household from Al-Ain, Abu Dhabi, the study estimates household demand for Food Away from Home (FAFH). The study uses household production model to estimate the demand for FAFH. The estimated income elasticities for FAFH are positive and elastic implying that growth in expenditure on FAFH outpaces growth in income. Urdu speaking have the highest growth in expenditure on FAFH as their income grow, followed by Emiratis, English and Arabs. As compared to Emiratis, Arabs and English spend significantly less amount on FAFH while Urdu speaking spend significantly higher amount. The expenditure on FAFH in popular restaurants is statistically less as compared to Asian restaurants. Hence, the industry should expect a growth in demand for FAFH especially keeping in view the expanding Emirati economy.
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