Copyright 2013 The Nielsen Company Confidential and proprietary

Copyright © 2013 The Nielsen Company. Confidential and proprietary. UNDERSTANDING THE MANPOWER IN JORDANIAN RESTAURANTS Presented to: JRA & SIYAHA September 2013 1

Copyright © 2013 The Nielsen Company. Confidential and proprietary. AGENDA EXECUTIVE SUMMARY SAMPLE PROFILE LOCAL VS. FOREIGNER STAFF REASONS BEHIND RECRUITING LOCALS VS. FOREIGNERS WHO COSTS MORE? RECRUITING LOCALS OR FOREIGNERS CURRENT & FUTURE STATUS OF THIS INDUSTRY IS EFFECTIVE TRAINING NEEDED? THE INCAPABILITY OF LOCAL STAFF. RECRUITING METHODS BENEFITS GIVEN TO LOCALS VS. FOREIGNERS LOCAL HOSPITALITY GRADUATE 2

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STUDY BACKGROUND § The Jordan Restaurant Association (JRA) was created by the Ministry of Tourism & Antiquities and empowered by law no. (47) in 2002 to represent and serve the growing restaurant industry in Jordan. § Recently the Ministry of Tourism & Antiquities issued a law that encourages restaurant owners to replace all foreigners staff with Jordanians. § § Therefore, JRA wants to assess the status of this industry in Jordan. To this end, Nielsen conducted this project using a quantitative approach, face-to-face interviews were taking place using a structured questionnaire. § At the beginning there was a high rejection rate but in cooperation with JRA field work went smoother. § Unfortunately Fast Food 3 stars could not been interviewed. This category contains 2 venues only & reason is high rejection & unavailability. 3

Copyright © 2013 The Nielsen Company. Confidential and proprietary. NOTES FOR READING THE REPORT § All figures presented here are in percentages, unless stated otherwise and written on the chart: “Absolute Numbers” § Question numbers along with it’s text as in the questionnaire are listed at the bottom left of the slide. § All the answers & numbers in this report is based on the say of the respondents (the sample) § Should client be interested in any additional analysis beyond what is presented in this report, client is to get back within 1 week of the delivery of this presentation for the extra analysis to be processed and done. 4

EXECUTIVE SUMMARY 5 Copyright © 2013 The Nielsen Company. Confidential and proprietary.

Copyright © 2013 The Nielsen Company. Confidential and proprietary. The findings of this survey supports the following points: 1) Foreigner staff represent around 31% of all staff of the targeted sample. Ø Foreigner staff allocates the positions which needs wide experience along with skills (such as: head chef, chef assistant, sous chef, etc. ), & the low level positions that Locals do not apply for since the culture of shame they suffer & they can not work under such kind of pressure (such as: Housekeeping, Argela, Kitchen steward employee, etc. ) Ø The dominant nationality of the foreigner staff in this sample is “Egyptian”. 2) Male is the dominant gender in all the positions in this industry that locals hold (regarding this sample), this is a result because of: Ø Unavailability of female worker to apply. Ø Culture of shame, which is the obstacle not for females, it is also for males to be part of this industry. Ø Nature of the work & troubles of it that females can not handle. In addition to that girls can not stay working late. 3) Venues that employ foreigners disclosed the following reasons behind this: Ø Foreigners accept lower wage comparing to the load of work they would be under. Talking about wage over here not the total cost of the foreigners. Ø Foreigners are humble; accept any kind of task to do even if it is considered a lower one. 6

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Ø Stability, foreigners are committed to their work, & they do consider it as a career. Unlike the locals who do not have a commitment towards their jobs in this industry, plus what locals suffer from culture of shame that do in many times represent a driver to let them leave their jobs. Ø They are Patient; capable to work under pressure & for long working hours. Unlike locals. Ø Foreigners are highly skilled related to the positions that need special skills. 4) There is around 24% of the sample recruiting 100% locals only. The major players in this area are fast food category& other locations category which include fast food restaurants also). 5) There are 2 venues that recruit foreigners only out of the fear of recruiting locals who do not have loyalty towards their jobs along the culture of shame they have. So, these 2 venues prefer & do employ foreigners only since they do not have to employee new staff from now & then & they won’t be exposed to the risk of losing the quality of service they have. 6) More than the half of the respondents think & disclose that recruiting foreigners costs more than recruiting locals. Although there is around 77% of the sample recruiting foreigners. Reasons behind this belief: Ø Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals. 7

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Ø Higher salaries they ask for, for some of the positions (such as head chef, etc. ) 7) Shortage is witnessed in two types of positions: 1. Ones which need high skills. 2. Others that represent Low level positions. Ø Reasons behind this are: Ø Lack of local employees Ø Lack of experience in the market Ø Culture of shame Ø High turnover of local staff 8) Around half of the respondents are planning to get more employees within the upcoming 3 years, and they prefer to employ Jordanian but so many obstacles face them, such as: 1. Culture of shame Locals have. 2. Unavailability of local workers, & lack of their commitments. 3. For the ones who prefer & need foreigners: Difficulties they face to get the permits, in addition to other problems they face from ministry of labor side. 8

Copyright © 2013 The Nielsen Company. Confidential and proprietary. 9) The industry suffers turnover of the staff. Some of the reasons behind this are: Ø Staff leave because of the availability of better jobs abroad (outside Jordan). Ø Staff leave in order to finish their university degrees. That gives an idea that they do not take these jobs as a career. Ø Staff don’t have any kind of commitment towards their jobs. 10) Around half of the respondents believe that there is a need for an effective training. And they think all the staff need all kind of training, most especially: customer service, etc. 11) Part of the respondents think that local staff are incapable of filling certain positions because of the following: Ø Culture of shame Ø Local don’t accept to work in certain positions for different personnel reasons. Ø Locals don’t have the will to work under pressure. Ø Less experience locals have in some areas. Ø Unavailability of local workers Ø Irresponsible towards the work Locals are doing 12) Majority of the venues rely on word of mouth to recruit new staff, newspapers, & internet. Sometimes they fail in the final stages of recruiting because of: Ø Figuring out after the interview that the potential staff is not that experienced. Ø The potential staff turns down the offer because it is low paid - from staff own perspective-. Ø Potential successful staff is foreigner hence because of the permit difficulties the recruiting process fails. 9

Copyright © 2013 The Nielsen Company. Confidential and proprietary. 13) Around 71% of the sample thinks that both locals & foreigners get the same benefits from the management. 14) Majority of the sample do not have local hospitality graduate working at their venues. As for the ones who have local hospitality graduates, around 6% out of them are not satisfied because the following reasons: Ø Local hospitality graduate are not qualified. Ø Low level of training these local graduate were exposed to(Vocational Training). Ø No practical experience enough local graduates hold(internship). Ø Since salary is not that high –from their own perspective-, the graduates staff themselves don't take the job seriously. Ø Unavailability of these local hospitality graduate. 10

SAMPLE PROFILE 11 Copyright © 2013 The Nielsen Company. Confidential and proprietary.

SAMPLE PROFILE OF RESPONDENTS AT THE VENUES 12 Copyright © 2013 The Nielsen Company. Confidential and proprietary.

Copyright © 2013 The Nielsen Company. Confidential and proprietary. SAMPLE PROFILE RESPONDENTS(1) Age Over 55 Years 5% Gender Female 5% 46 -55 Years 13% Base: all respondents 345 18 -25 Years 12% 36 -45 Years 28% Male 95% 26 -35 Years 42% Restaurants Base: all respondents 345 11% Years of Experience Nationality 8% 8% 7% 7% 6% Others 11% 6% 6% 5% 5% 4% 3% 3% 3% Jordanian 89% 1 2 3 4 5 6 7 8 9 10 12 13 15 16 20 Others 13

Copyright © 2013 The Nielsen Company. Confidential and proprietary. SAMPLE PROFILE RESPONDENTS(2) Post Graduate Degree Some/ finished (Master's Ph. D. ) Intermediate Some Secondary 2% 1% 2% Level of Education Finished Secondary 21% Completed University 49% Some/ finished College 25% Occupation of respondent # Base 345* Owner HR Staff Venue Manager Head Chef Supervisor Financial manager Manager Assistant Restaurants Accountant. Base: all respondents 345 87* 28* 224* 1* 1* 1* 2* 1* *Absolute Number 14

SAMPLE PROFILE OF VENUES 15 Copyright © 2013 The Nielsen Company. Confidential and proprietary.

Copyright © 2013 The Nielsen Company. Confidential and proprietary. SAMPLE PROFILE TYPE OF BUSINESS(1) Base: all respondents 345 at the 345 venues Others Location 16% Restaurant 43% Fast Food 13% Entertainment City 4% Coffee shop 23% 16

Copyright © 2013 The Nielsen Company. Confidential and proprietary. SAMPLE PROFILE TYPE OF BUSINESS(2) 1 star 2% 1 star 19% 3 stars 7% 4 stars 13% 2 stars 31% 1 star 43% 3 stars 31% 3 stars 67% Fast Food Base: all respondents at the Fast Food category 45 2 stars 49% 2 stars 37% Restaurants Base: all respondents at the restaurant Category 150 Coffee shops Base: all respondents at the Coffee shop Category 81 Type of business Sample Base 345* Restaurants (4, 3, 2& 1 stars) 150* Coffee shop(3, 2, 1 stars) 81* Entertainment City 14* Fast Food(3, 2, 1 stars) 45* Others Location** 55* • Absolute Number • ** Outside Amman 17

Copyright © 2013 The Nielsen Company. Confidential and proprietary. SAMPLE PROFILE NOTES TO BE CONSIDERED Kindly while going through the report consider the following points: 1) Sample size = 345 respondents at different venues; including the following categories(Restaurants 150, Coffee shops 81, Entertainment Cities 14, Fast Food 45, Other Locations 55). 2) In these 345 venues we have 7, 096 staff (in total), including 2, 169 foreigner staff (which 31%of total employees) & 4, 927 Local staff (which 69%of total employees); distributed as follows: Category Restaurant Category # of venues Foreigners 20 1, 019 Restaurant 3 stars 46 1, 312 926 386 Restaurant 2 stars 55 1, 226 728 498 Restaurant 1 star 29 380 225 155 3, 937 2, 494 1443 615 404 Coffee shops 3 stars 6 172 135 37 Coffee shops 2 stars 40 454 288 166 Coffee shops 1 star 35 332 187 145 958 610 348 14 433 414 19 Fast Food 3 stars 1 36 35 1 Fast Food 2 stars 14 406 340 66 Fast Food 1 star 30 268 225 43 710 600 110 1, 058 809 249 Total Entertainment Cities Fast Food Category Locals Restaurant 4 stars Total Coffee Shop Category # of all staff Total Other Locations 55 18

Copyright © 2013 The Nielsen Company. Confidential and proprietary. LOCAL VS. FOREIGNER STAFF General Shopping Behavior 19

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN RESTAURANTS CATEGORY(1) Ø Within the 345 venues have been targeted in this project there is 7, 096 employees. 3, 937 employees in the “Restaurant Category”. Ø Out of these 3, 937 there is 2, 494 local staff & 1, 443 foreign staff. Ø The below table details how these figures are distributed: % of total local Foreigners foreigner staff in this (Abs values) staff in this category # of all staff (Abs Value) % of total staff in this category Restaurant 4 stars 1, 019 26 615 25 404 28 Restaurant 3 stars 1, 312 33 926 37 386 27 Restaurant 2 stars 1, 226 31 728 29 498 35 Restaurant 1 star 380 10 225 9 155 11 Category Restaurant Category Locals (Abs Values) Total 3, 937 2, 494 1, 443 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 20

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN RESTAURANTS CATEGORY(2) Ø As shown below, in all the restaurant –regardless how many stars they hold- locals are more than foreigners. Category # of all staff (Abs Value) % of (locals/all Locals staff in each sub(Abs Values) category) % of Foreigners (foreigners/all (Abs values) staff in each sub-category) Restaurant 4 stars 1, 019 615 60 404 40 Restaurant 3 stars 1, 312 926 71 386 29 Restaurant 2 stars 1, 226 728 59 498 41 Restaurant 1 star 380 225 59 155 41 3, 843 2, 424 Restaurant Category Total 1, 419 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 21

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN COFFEE SHOP CATEGORY(1) Ø Within the 345 venues have been targeted in this project there is 7, 096 employees. 958 employees in the “Coffee shop Category”. Ø Out of these 958 there is 610 local staff & 348 foreign staff. Ø The below table details how these figures are distributed: Category Coffee shops 3 stars Coffee Shop shops 2 Category stars Coffee shops 1 star Total % of total local staff Foreigners in this category # of all staff % of total staff in this category Locals 172 18 135 22 37 11 454 47 288 47 166 48 332 35 187 31 145 42 958 610 348 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 22

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN COFFEE SHOP CATEGORY(2) Ø All the category have more % of local staff than foreigners. # of all staff Locals % of (locals/all staff in each sub-category) Foreigners (Abs values) % of (foreigners/all staff in each sub-category) Coffee shops 3 stars 172 135 78 37 22 Coffee shops Shop 2 stars Category 454 288 63 166 37 Coffee shops 1 star 332 187 56 145 44 958 610 Category Total 348 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 23

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN ENTERTAINMENT CITIES CATEGORY Ø Within the 345 venues have been targeted in this project there is 7, 096 employees. 433 employees in the “Entertainment Cities Category”. Ø Out of these 433 there is 414 local staff & 19 foreign staff. Ø 96% of this category’s staff are locals where foreigners represent only 4% of all the staff. Category # of all staff Entertainment Cities 433 Locals % 0 f (locals/all staff) Foreigners % of (foreigners /all staff) 414 locals 96 19 foreigners 4 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 24

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN FAST FOOD CATEGORY(1) Ø Within the 345 venues have been targeted in this project there is 7, 096 employees. 710 employees in the “Fast Food Category”. Ø Out of these 710 there is 600 local staff & 110 foreign staff. Ø The below table details how these figures are distributed: # of all staff % of total staff in this category Locals % of total local staff in this category Foreigners % of total local staff in this category Fast Food 3 stars 36 5 35 6 1 1 Fast Food 2 stars Category 406 57 340 57 66 60 268 38 225 38 43 39 Category Fast Food 1 star Total 710 600 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 110 25

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN FAST FOOD CATEGORY(2) Ø As shown below, Fast food 2 stars has 84% of total staff of this sub-category locals where 16% foreigners, etc. Category % of (locals/all Foreigners (foreigners/all staff in each (Abs values) staff in each sub-category) # of all staff Locals Fast Food 3 stars 36 35 97 1 3 Fast Food 2 stars Category 406 340 84 66 16 268 225 84 43 16 710 600 Fast Food 1 star Total 110 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 26

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STAFF IN OTHER LOCATION CATEGORY Ø Within the 345 venues have been targeted in this project there is 7, 096 employees. 1, 058 employees in the “Other Location Category”. Ø Out of these 1, 0578 there is 809 local staff & 249 foreign staff. Ø 76% of all the staff over here are locals, where 24% are foreigners. Category # of all staff Other Locations 1, 058 Locals % of (locals/ all staff) Foreigners % of (foreigners/a ll staff) 809 76 249 24 Ref. S 1. a How many staff do you have in the venue? Ref. S 1. b How many of the (answer of S 1. a)are foreigners? 27

Copyright © 2013 The Nielsen Company. Confidential and proprietary. INFO ABOUT THE LOCAL STAFF Ø At the total level 18% of all local staff represent “waiter/waitress” staff, 7% “Chef Assistant”, 7% “Kitchen Steward employees”, & 7% “Food preparation Assistant”. Coffee Shops Category Enterta Fast Food Category Other Total inment Locatio 4 stars 3 stars 2 stars 1 star City 3 stars 2 stars 1 star ns Restaurant Category Base: Total 4927* number of staff 615* 926* 728* 225* 135* 288* 187* 414* 35* 340* 225* 809* 18 16 28 17 7 31 30 24 5 9 8 7 17 7 5 12 8 7 7 3 3 6 2 6 Kitchen steward employee 7 8 2 7 4 22 10 4 1 17 9 10 Food preparatio n Assistant 7 10 5 5 11 5 1 1 1 5 35 8 6 3 2 6 8 1 10 7 6 6 15 7 6 3 6 11 6 5 12 14 6 16 6 Housekeep ing 6 4 7 5 8 3 2 7 Head Chef 5 3 7 5 10 3 3 1 2 3 6 1 5 Busboy 5 6 14 2 4 3 6 4 9 1 Waiter/Wa itress Chef assistant Restaurant Manager Accountan t Ref. S 1. c Kindly list the local employees’ information required below as groups 14 *Absolute Number 1 28

Copyright © 2013 The Nielsen Company. Confidential and proprietary. INFO ABOUT THE LOCAL STAFF Head Chef Assistant Female 2% Male 98% Base: Abs value: 238, # of Food preparation Assistant Kitchen Steward assistant Female 3% Female 2% Male 98% Base: Abs value: 324, # of Base: Abs value: 346, # of local Food Male 97% Base: Abs value: 356, # of local kitchen steward Ref. S 1. c Kindly list the local employees’ information required below as groups 29

Copyright © 2013 The Nielsen Company. Confidential and proprietary. INFO ABOUT THE LOCAL STAFF Waiter/waitress Housekeeping Female 3% Male 97% Base: Abs value: 875, # of local Waiter/waitress Male 97% Accountant Female 13% Base: Abs value: 273, # of local accountant Male 87% Base: Abs value: 296, # of Busboy Female 6% Male 94% Base: Abs value: 243, # of Ref. S 1. c Kindly list the local employees’ information required below as groups 30

Copyright © 2013 The Nielsen Company. Confidential and proprietary. INFO ABOUT THE LOCAL STAFF Restaurant Manager Female 1% Male 99% Base: Abs value: 282, # of local Restaurant manager Ø As shown in the previous slides males is the dominant local gender in all of the position. However we see that accountant –which is a desk job- has a higher % of females than other positions. Ref. S 1. c Kindly list the local employees’ information required below as groups 31

Copyright © 2013 The Nielsen Company. Confidential and proprietary. WHY MALES IS THE DOMINANT GENDER IN THIS SECTOR? Base: Abs values , # of males more than females Head chef: 154 Chef assistant: 122 Food preparation Assis: 98 Kitchen steward employee: 105 Restaurant Manager: 201 Housekeeping. : 102 Waiter/waitress: 181 Busboy: 50 Accountant: 136 34 27 28 29 26 24 24 22 21 21 20 19 19 18 17 15 15 14 16 15 14 12 12 15 16 15 13 17 17 18 18 15 15 12 15 13 11 12 10 7 Because of the nature of the work(it is not for females) unavailability of females applying Females cannot handle work troubles 6 Culture of shame; our Girls cannot work late at society doesn't accept this night "traditions" Head Chef Chief assistant Food preparation Assistant Kitchen steward employee Restaurant Manager housekeeping Waiter/Waitress Bus. Boy Ref. S 1. f Why males are more than females? Accountant 32

Copyright © 2013 The Nielsen Company. Confidential and proprietary. INFO ABOUT THE FOREIGN STAFF Ø 23% of the 2, 169 foreigner staff are “housekeeping” staff, 20% are “waiter/waitress”, etc. . Coffee Shops Restaurant Category 1 3 Entertainment Total 4 stars 3 stars 2 stars 1 star City Base: No. of foreign staff 2169* 404* 386* 498* 155* 37* 3 stars 2 tars Other 1 star Locations 166* 145* 19* 1* 66* 43* 249* 53 100 12 14 16 24 2 22 27 12 10 Housekeeping 23 26 37 21 14 27 14 28 Waiter/Waitress 20 12 20 23 12 19 39 15 Kitchen steward employee 12 15 9 13 4 24 13 5 21 Hubbly boy “Argela” 8 2 6 12 2 19 7 30 11 Food preparation Assistant 7 14 1 2 23 3 4 Chief assistant 6 6 8 4 13 3 4 1 Busboy 4 2 9 8 2 5 Head Chef 3 3 6 1 5 3 Sous Chef 3 5 7 2 Captain/Floor manager 3 5 3 1 5 Fast Food Category 1 Ref. S 1. g Kindly list the Foreign employees’ information required below. 6 9 53 6 2 8 7 9 6 3 2 2 2 6 2 9 * Absolute values 33

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Gender Head chef Sous Chef Female 3% Base: Abs value: 71 # of foreigner sous chef Base: Abs value: 75 # of foreign head chef Male 100% Male 97% Chef Assistant Food preparation assistant Female 2% Base: Abs value: 159, # of foreigner food preparation assistant Base: Abs value: 127, # of foreigner Chef Assistant Male 98% Male 100% Ref. S 1. g Kindly list the Foreign employees’ information required below. 34

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Gender Hubbly boy “Argela” Captain Manager Base: Abs value: 172, # of foreigners Argela boy Male 100% Busboy Base: Abs value: 67, # of foreigner Captain Manager Kitchen Steward assistant Female 1% Base: Abs value: 86, # of foreigner Busboy Male 100% Male 99% Base: Abs value: 258, # of foreign kitchen steward assistant Ref. S 1. g Kindly list the Foreign employees’ information required below. 35

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Gender Waiter/Waitress Female 0% Male 100% Housekeeping Female 3% Base: Abs value: 426, # of foreigners Waiter/waitr ess Male 97% Base: Abs value: 509 # of foreigner Housekeep ing Ø As shown in the previous slides males is also the dominant foreigner gender in all of the positions. Ref. S 1. g Kindly list the Foreign employees’ information required below. 36

Ø 47% of the foreigner head chefs are “Egyptian” while at the same time 61% of sous chef are “Egyptian” 47 61 21 14 13 4 3 1 4 an ia n 1 Jo rd HE RS 4 OT di an 4 In in es e 7 Ch ip in o 7 Fil Le ba ne se n ria Sy yp tia n 9 Eg Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Nationality Egyptian Filipino Chinese Head Chef Base= Abs Values 75 foreigner staff Syrian Lebanese Yemen Pakistani Sous Chef Base= Abs Values 71 foreigner staff Ref. S 1. g Kindly list the Foreign employees’ information required below. 37

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Nationality 58 65 16 23 16 7 2 Egyptian Filipino Syrian 1 8 1 Chinese Lebanese Yemen Srilankan Egyptian Chef Assistant Base= Abs Values 127 foreigner 2 Syrian Filipino Chinese 1 Nepalese Food preparation Assistant Base= Abs Values 159 foreigner Ref. S 1. g Kindly list the Foreign employees’ information required below. 38

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Nationality 85 94 9 2 Egyptian Syrian Filipino 2 1 Korean Chinese 1 Yemen 1 Indian Egyptian Kitchen Steward Assistant Base= Abs Values 258 foreigner 3 1 1 Filipino Korean Syrian Housekeeping Base= Abs Values 494 foreigner Ref. S 1. g Kindly list the Foreign employees’ information required below. 39

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Nationality 64 87 24 7 Egyptian Syrian Lebanese 12 4 Chinese Egyptian Captain Floor manager Base= Abs Values 67 foreigner staff Syrian 1 1 Filipino Korean Waiter/waitress Base= Abs Values 426 foreigner Ref. S 1. g Kindly list the Foreign employees’ information required below. 40

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Info about the Foreign Staff Nationality Ø As shown in the previous charts the Egyptian nationality is the dominant nationalities for all the mentioned positions. 78 91 15 7 6 Egyptian Syrian Filipino Egyptian Busboy Base= Abs Values 86 foreigner staff Syrian 2 Korean 1 Iraqi Argela boy Base= Abs Values 172 foreigner Ref. S 1. g Kindly list the Foreign employees’ information required below. 41

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Local Vs. Foreign Staff (for some positions) Waiter/Waitress Chef Assistant Foreigner s 28% Foreigners 33% Locals 67% Base: Abs value: 1, 301 # of Waiter/waitr ess staff Kitchen Steward staff Foreigners 42% Locals 58% Base: Abs value: 451 # of Chef Assistant. Locals 72% Food preparation assist. Base: Abs value: 614 # of Kitchen steward staff Foreigners 31% Locals 69% Base: Abs value: 505 # of food preparation assistant 42

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Local Vs. Foreign Staff (for some positions) Housekeeping Head Chef Foreigner s 24% Locals 37% Foreigners 63% Base: Abs value: 805 # of Housekeepin g staff Busboy Locals 76% Base: Abs value: 313 # of Head Chef Restaurant Mgr Foreigners 7% Foreigners 26% Locals 74% Base: Abs value: 329 # of Busboy Locals 93% Base: Abs value: 302 # of Restaurant Mgr. 43

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Local Vs. Foreign Staff (for some positions) Accountant Captain Floor Mgr Foreigners 2% Foreigner s 25% Base: Abs value: 278 # of Accountants Locals 75% Base: Abs value: 271 # of Captain Floor Mgr Locals 98% Argela Locals 20% Foreigners 80% Base: Abs value: 214 # of Argela 44

Copyright © 2013 The Nielsen Company. Confidential and proprietary. General Shopping REASONS BEHIND RECRUITING Behavior LOCALS VS. FOREIGNERS 45

Ø Within the 345 venues had been interviewed there is 264 of them having foreigner staff in their venues. As shown in the below table, Restaurants 2 stars is the one includes the largest stake of them, followed by Restaurant 3 stars, Other Locations, Coffee shops 1 & 2 star, etc. Ø In total, almost half of the respondents disclosed that the reasons behind recruiting foreigners are: “foreigners accept lower wages for long working hours”, “foreigner are humble, they accept any task/position they are assigned to even if it's considered a lower one”, & “foreigners has the attribute of Stability, they are committed to their work”. 6* 30* 31* 5* 53 55 55 44 76 Humble, they accept any task/position they are assigned to even if it's considered a lower one Stability, they are committed to their work Patient, capable to work under pressure & for long working hour Highly Skilled The local people don't like to work hard and there's no commitment to the work 48 45 32 52 81 47 45 58 50 43 35 26 37 30 17 84 60 33 27 42 40 100 38 50 43 68 20 100 48 38 33 30 45 20 34 29 52 33 37 87 20 8 16 4 29 There's no local people want to work 8 5 21 17 10 Passionate, they love what they are doing 6 10 5 10 3 13 There's no stability for local people They don't have culture of shame 5 3 3 6 5 3 13 3 Committed to working 8 5 1* 12* 16* 32* 25 75 63 42 44 78 38 41 75 63 56 17 19 19 8 6 16 100 3 3 20 40 3 1 star 21* Other Locations S tars 1 star 52* Entertainmen t City 2 stars Accept lower wages for long working hours 20* 38* Fast Food 3 stars 264* 1 star Base(venues which has foreigner staff) 2 stars Total 3 stars Reasons behind recruiting Foreigners Coffee shops 3 stars Restaurant Category 4 stars Copyright © 2013 The Nielsen Company. Confidential and proprietary. IF THERE IS FOREIGNER STAFF AT THE VENUE 19 6 3 6 Ref. S. 2 a What are the reasons behind recruiting foreigner at your venue 46

Ø Within the 345 venues had been interviewed there is 81 of them having local staff only in their venues. As shown in the below table, Coffee shops 3 stars category does have foreigner staff, it is not 100% having only locals. Fast Food 1 star & other location category are the ones containing the largest stake of them. Ø In total, the majority address that the reason behind recruiting locals only is because of the goal to encourage the local employment. Highly Skilled Polite in dealing with the customers 20 50 33 11 Difficulty permits of foreign workers Humble, they accept any task/position they are assigned to even if it's considered a lower one Rejection of the Ministry of tourism to get expatriate workers Patient, capable to work under pressure & for long working hour 10* 20 4* 25 9* 33 13 50 25 33 7 21 38 10 10 22 11 25 13 4 17 10 38 13 14 4 7 38 13 Accept lower wages for long working hours 7 38 13 Stability, they are committed to their work High cost to the expatriate workers 7 6 9 33 13 33 25 10 0* 2* 50 14* 50 11 10 23* 35 13 7 10 13 1 star 0* 81* 2 stars 8* 13 Other Locations 1 star 3* Encourage local employment 8* 50 Entertainmen t City 2 stars 1 star 0* 33 Base(venues which has LOCAL staff only) Fast Food 3 stars 2 stars Total 3 stars Reasons behind recruiting locals ONLY Coffee shops 3 stars Restaurant Category 4 stars Copyright © 2013 The Nielsen Company. Confidential and proprietary. IF 100% OF THE STAFF IS LOCAL 4 7 25 7 11 9 13 Ref. S. 2 b What are the reasons behind recruiting Locals ONLY 47

Copyright © 2013 The Nielsen Company. Confidential and proprietary. IF 100% OF THE STAFF IS FOREIGNER Ø Only 2 venues out of the 345 ones recruit only foreigners. Ø Fast Food 2 starts made it clear that the reason behind this scenario is: local staff don’t commit to their work in this industry. Whereas Coffee shops 2 stars said the same in addition to what locals suffers because of the culture of shame. 1 Fast Food Non-commitment of local staff 1 coffee shop Non-commitment of local staff & culture of shame 2 venues have only foreigner staff Ref. S. 2 c All of your employees are foreigners, why don’t you recruit locals? 48

Copyright © 2013 The Nielsen Company. Confidential and proprietary. General Shopping WHO COSTS MORE? RECRUITING Behavior LOCALS OR FOREIGNERS 49

Copyright © 2013 The Nielsen Company. Confidential and proprietary. WHO COSTS MORE TO RECRUIT? LOCAL OR FOREIGNER Ø In total, 54% of the sample thinks that recruiting foreigners costs more, whereas 40% thinks the opposite. 6% of the sample thinks both costs the same. Despite this fact we have 264 venues recruiting foreigners due to the previously mentioned reasons. Ø Restaurant Category: 4 stars, 3 stars & 1 star: majority thinks that foreigner costs more- although they are the ones who recruits foreigners-, while 2 stars majority think that Local costs more. Coffee shop Category: 3 & 2 stars majority thinks that foreigner costs more while 1 star think the opposite. Fast Food & Other location majority thinks that foreigner costs more. At the same time Entertainment city category 50% thinks foreigner & the other 50% think that Local costs more. total Base: absolute value= Total: 345 Res 4 stars: 20 Res 3 stars: 46 Res 2 stars: 55 Res 1 star: 29 Coffee shop 3 stars: 6 Coffee shop 2 stars: 40 Coffee shop 1 star: 35 Entertainment City: 14 Fast Food 3 stars: 1 Fast Food 2 stars: 14 Fast Food 1 star: 30 Other Location: 55 Res 4 stars 100 Res 3 stars Res 2 stars 86 Res 1 star 79 Coffee sh 3 stars 75 74 Coffee sh 2 stars Coffee sh 1 star 63 53 45 40 54 50 43 43 Entertainment City 57 50 48 50 Fast Food 3 stars 50 Fast Food 2 stars 45 Fast Food 1 star 33 21 Other Locations 25 26 25 17 14 6 5 0 Local Ref. S 2. d In your opinion, who do you think it costs more: hiring a foreigner or a local staff? Foreigner 9 13 2 Same 50

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Why Locals costs more? Ø 138 respondents out of the 345 answered with “local costs more”. Ø In total, 80% stated that the reason behind their thoughts is that locals ask for high salary compared to their work experience. Total Base: absolute value= Total: 138 Asks for vacation most often Asks for salary increment almost all of the time 7 8 Instability and less commitment 12 Asking for health insurance premiums and other benefits 12 Asks for less working hours than foreigners they ask for high salary compared with their work experience Ref. S 2. e Why hiring a local costs more than hiring a foreigner? 14 80 51

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Why Locals costs more? Ø 138 respondents out of the 345 answered with “local costs more”. The following box highlight the number for each category that did the same. Ø Respondents at Coffee shops 3 stars: all of them the 2 respondents disclosed the same reason which is “they ask for high salary compared with their work experience”, same as Fast Food 2 stars. Other Locations Fast Food 1 star Fast Food 2 stars Fast Food 3 stars Base: absolute value= Coffee shop 1 star Coffee shop 2 stars Coffee shop 3 stars Restaurant 1 star Total: 138 ones who said Restaurant 3 stars Restaurant 4 stars Total locals cost more 7 Res 4 stars: 9 Res 3 stars: 20 4 Asks for vacation most often Res 2 stars: 29 10 14 Res 1 star: 6 7 11 Coffee shop 3 stars: 2 46 Coffee shop 2 stars: 10 14 Asks for salary increment almost all of the time Coffee shop 1 star: 26 10 Entertainment City: 7 11 8 Fast Food 3 stars: 0 14 15 Fast Food 2 stars: 2 14 Fast Food 1 star: 13 Instability and less commitment 10 Other Location: 14 5 1114 12 14 23 29 8 10 Asking for health insurance premiums and other benefits 17 5 1114 12 15 29 35 Asks for less working hours than foreigners 10 17 14 31 they ask for high salary compared with their work experience Ref. S 2. e Why hiring a local costs more than hiring a foreigner? 50 Entertainment City Restaurant 2 stars 83 86 86 79 7880 85 90 100 100 52

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Why Foreigner costs more? Ø 186 respondents out of the 345 answered with “foreigner costs more”. Ø 99% out of the total (186 respondents who said foreigners cost more) stated that the reason behind their thoughts is that Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals Base: absolute value= Total: 186 who answered with foreigners cost more than locals to train foreigners need more time than training the locals 1 Nature of work is hard for the foreigner to handle 1 Higher salaries they ask for Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals Ref. S 2. f Why hiring a foreigner costs more than hiring a local? 13 99 53

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Why Foreigner costs more? Ø The reason “Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals” is almost the one all respondents mention it. Base: absolute value= Total: 186 ones who said foreigners cost more Res 4 stars: 10 Res 3 stars: 22 Res 2 stars: 25 Res 1 star: 23 Coffee shop 3 stars: 3 Coffee shop 2 stars: 25 Coffee shop 1 star: 0 Entertainment City: 7 Fast Food 2 stars: 1 Fast Food 1 star: 12 Other Location: 17 Other Locations Fast Food 1 star Fast Food 2 stars Fast Food 3 stars Entertainment City Coffee shop 1 star Coffee shop 2 stars Coffee shop 3 stars Restaurant 1 star Restaurant 2 stars Restaurant 3 stars Restaurant 4 stars Total to train foreigners need more time than training the locals 4 1 Nature of work is hard for the foreigner to handle 4 1 12 Higher salaries they ask for 5 Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals 12 13 13 20 40 98 100 100 95 100 99 Ref. S 2. f Why hiring a foreigner costs more than hiring a local? 54

Copyright © 2013 The Nielsen Company. Confidential and proprietary. Why both costs the same? Ø In total, 21 respondents at venues stated that both costs the same. Ø Reasons behind this is listed below. Reasons behind this It is the same cost except in the case of the foreign chef who ask for a very high wage Same since local employee asks for a high wage while cost of a foreigner employee is higher than local one (e. g. labour license and accommodation) Ref. S 2. f Why hiring a foreigner costs more than hiring a local? 55

Copyright © 2013 The Nielsen Company. Confidential and proprietary. General Shopping CURRENT & FUTURE STATUS OF Behavior THIS INDUSTRY 56

Ø As shown in the below chart, in total there is a shortage in “waiter/waitress” position. Fast food 3 star is the most who suffer from this problem. Ø The least shortage is in the “food preparation assistant” position & the most who is exposed to it is Coffee shops 3 stars. Waiter/Waitress Housekeeping Kitchen steward employee Head Chef Chief assistant Food preparation Assistant Base: absolute value= Total: 345 Res 4 stars: 20 Res 3 stars: 46 Res 2 stars: 55 Res 1 star: 29 Coffee shop 3 stars: 6 Coffee shop 2 stars: 40 Coffee shop 1 star: 35 Entertainment City: 14 Fast Food 3 stars: 1 Fast Food 2 stars: 14 Fast Food 1 star: 30 Other Location: 55 100 67 ar at io st oc r. L he Ot Fa st Fd 1 st 2 Fd st Fa 2 ns 3 ar s s Fd st en t m te rta in 3 Ci st ar ty ar 1 sh 13 11 7 4 3 En Co ffe e 2 sh e st st ar s 3 ffe Fa 53 3 14 77 7 7 6 s 108 Co e ffe Co 2121 1717 17 st ar s 1 ar st 2 Re s 3 st ar ar 4 Re s 17 10 7 3 7 5 s s 65 9 28 Re 10 5 20 13 2931 22 22 Sh 28 22 st 19 14 97 30 s 3030 To ta l Copyright © 2013 The Nielsen Company. Confidential and proprietary. SHORTAGE WITNESSED AT THE PRESENT Ref. S. 3 a At the present, which of the following positions do you face shortage? And, what are the reasons behind such a shortage? 57

Copyright © 2013 The Nielsen Company. Confidential and proprietary. REASONS BEHIND THIS SHORTAGE Ø As shown in the below chart, “Lack of local employment” is the common reason behind the shortage of all the down listed positions. Ø 32% of respondents who stated there is a shortage in “chef assistant” position (22 respondents did) disclosed that the reason behind this is “Lack of local employment”, same for 30% of who said there is a shortage in “head chef” position (23 respondents). , etc… Ø 64% of the 47 respondents who disclosed a shortage in the housekeeping position stated that the reason behind this shortage is “culture of shame”. Lack of local employment Leave work for better job opportunities Not Commited to the work, they travel abroad Culture of shame Lack of experience in this area 64 Base: absolute value= who stated shortage for “waiter/waitress”: 64 “Housekeeping”: 47 “Food preparation assistant”: 18 “Kitchen steward employee”: 30 “Head Chef”: 23 “Chef Assistant”: 22 37 32 36 30 14 14 Chef assistant 17 20 13 17 11 9 Head Chef Kitchen steward employee 20 17 17 11 11 Food preparation Assistant 11 Housekeeping Ref. S. 3 a At the present, which of the following departments do you face shortage? And, what are the reasons behind such a shortage? 8 8 Waiter/Waitress 58

Ø As shown below, Restaurant 2 stars is the most part who needs more employees during the upcoming 3 years, followed by Coffee shops 3 stars, entertainment cities, Fast food 2 stars, … Ø Whereas, the most who stated there is less need for more employees in the future are: fast Food 3 stars (1 venue), Restaurant 4 stars, Coffee shop 1 star, … Yes No 100 75 75 59 49 51 45 41 41 74 67 59 25 57 55 43 33 25 64 57 53 47 43 36 26 Base: absolute value= Total: 345 Res 4 stars: 20 Coffee shop 3 stars: 6 Res 3 stars: 46 Coffee shop 2 stars: 40 Res 2 stars: 55 Coffee shop 1 star: 35 Res 1 star: 29 ns Ot he r. L oc 1 at io st ar s st Fa 2 od Fo st Fo od st ar s 3 Fa od Fa st Fo m En te rta in sh e ffe Co Entertainment City: 14 Fast Food 3 stars: 1 Fast Food 2 stars: 14 Fast Food 1 star: 30 Other Location: 55 st ar Ci en t 1 op 2 op sh ty st ar ar s st ar s Co ffe e sh op 3 1 nt Co ffe e Re st au ra nt ra st st ar s 2 st ar s ar Re st au ra st au Re st au ra nt nt 3 4 st st To t al ar s 0 Re Copyright © 2013 The Nielsen Company. Confidential and proprietary. THE NEED FOR MORE EMPLOYEES IN THE FUTURE Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which departments? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? 59

Ø In total, 47% of the respondents who said there would be a need for more employees in the future (which they are 168 respondents) stated that the need would be for “waiter/waitress” position. Whereas 33% said “housekeeping”, 27% stated “Kitchen steward employee”, 24% “head chef”, 23% “chef assistant”, & 23% said “Food preparation Assistant “. Ø Out of the 47% who said “waiter/waitress” are: 63% Coffee shop 2 stars, 60% “entertainment cities”, 54% “restaurant 2 stars”, 50% “restaurant 4 stars”, … Ø 60% out of the 33% of respondent said the need would be for “housekeeping” is “coffee shop 3 stars”. Waiter/Waitress Housekeeping Kitchen steward employee Head Chef 63 Chief assistant Food preparation Assistant 62 60 58 60 57 65 54 50 50 49 47 50 50 43 4040 40 32 33 32 32 33 31 25 25 21 20 17 1717 13 ar 1 st Fa st Fo o d 1 op sh e ffe Base: absolute value= Total who disclosed that there is a need for more employees: 168 Res 4 stars: 6 Res 3 stars: 26 Res 2 stars: 37 Res 1 star: 12 Coffee shop 3 stars: 5 Coffee shop 2 stars: 19 Coffee shop 1 star: 8 Entertainment City: 10 Fast Food 2 stars: 12 Fast Food 1 star: 17 Other Location: 16 st ar s t 3 ur an ta Re s op Co ffe e sh r. L he Ot ar st 3 at oc 2 od Fo 6 ns io ar st st st Fa ta ur an t 1 st Re s t 4 an ur s ar ta Re s an ur ta Re s in m rta te En t 2 en st t. C ar st 2 op sh 1818 6 ity s l ta e 19 10 5 To 19 17 13 13 11 ffe 38 35 st 27 242323 38 Co 33 Co Copyright © 2013 The Nielsen Company. Confidential and proprietary. POSITIONS NEEDED IN THE FUTURE Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? 60

Copyright © 2013 The Nielsen Company. Confidential and proprietary. NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE Head chef Chef Assistant Chinese. Turkish 3% 5% Filipino 8% Syrian 15% Egyptian 15% Lebanese Pakistani Filipino 3% 3% 4% Egyptian 14% Jordanian 54% Syrian 16% Base: Abs value: 40 , who said “head chef” they need in the future Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? Jordanian 60% Base: Abs value: 39 , who said “chef assistant” they need in the future 61

Copyright © 2013 The Nielsen Company. Confidential and proprietary. NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE Food preparation Assist. doesn't Kitchen steward employee Bengali Filipino 2% 7% mattar Lebanese. Turkish 3% 3% 3% Filipino 5% Syrian 9% Egyptian 14% Jordanian 50% Jordanian 63% Base: Abs value: 39, who said “Food preparation Assist. ” they need in the future Egyptian 32% Base: Abs value: 45 , who said “Kitchen steward employee” they need in the future Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? 62

Copyright © 2013 The Nielsen Company. Confidential and proprietary. NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE Housekeeping Waiter/Waitress Philipino Filipino 3% 4% Syrian 10% Filipino 9% Syrian 8% Egyptian 46% Jordanian 35% doesn't mattar 3% Egyptian 21% Base: Abs value: 56 , who said “ Housekeeping” they need in the future Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? Jordanian 61% Base: Abs value: 79 , who said “Waiter/Waitr ess” they need in the future 63

Copyright © 2013 The Nielsen Company. Confidential and proprietary. OBSTACLES TO FILL THE NEED Waiter/Waitress housekeeping Base: Abs values , ones who coded the needed positions Waiter/waitress: 79 Housekeeping: 56 Kitchen steward employee: 45 Head Chef: 40 Chef assist. : 39 Food preparation Assis: 39 Kitchen steward employee Head Chef Chief assistant Food preparation Assistant 32 23 23 21 18 16 15 14 13 13 13 11 8 7 9 7 8 9 8 5 3 Culture of shame locals have 8 5 5 6 5 2 difficult Permits foreigners There are no local workers Lack of local commitment Ministry of Labor made it a problem Ref. S. 3 b During the upcoming 3 years, would you need more employees? If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need? 64

Copyright © 2013 The Nielsen Company. Confidential and proprietary. STATUS OF THE EMPLOYEES TURNOVER Ø The below chart gives a picture of the status of the turnover for some position respondents have mentioned. Ø “Housekeeping” & “waiter/waitress” are the most positions witness high turnover. Ø “Butcher”, “Sous Chef”, “Pastry chef”, & “kitchen steward employee” are the most that witness very low turnover. Head Chef Sous Chef Chief assistant Food preparation Assistant Kitchen steward employee Pastry Chef Butcher Restaurant Manager housekeeping Waiter/Waitress 89 83 Base: absolute value= Times each position was coded to address a turnover in the past Waiter/Waitress: 121 Kitchen steward employee: 81 Food preparation Assistant: 80 housekeeping: 77 Chef Assist: 63 Head Chef: 53 Sous Chef: 42 Pastry Chef: 39 Butcher: 36 Restaurant Manager: 35 86 82 70 60 58 51 35 35 27 21 21 22 21 18 17 11 10 4 Very Low 2 3 5 5 6 Low 8 9 7 14 10 9 3 3 Medium 5 11 12 12 3 3 High Ref. S. 4. a Within the last 12 months, was it very low, medium, high, or very high the amount of employees who left at each department? & what are the reasons behind this? 12 11 8 2 5 5 5 Very High 65

Copyright © 2013 The Nielsen Company. Confidential and proprietary. REASONS BEHIND THE STATUS OF THE EMPLOYEES TURNOVER Waiter/Waitress housekeeping Kitchen steward employee Head Chef assistant Food preparation Assistant 35 29 Base: absolute value= Times each position was coded to address a turnover in the past Waiter/Waitress: 121 Kitchen steward employee: 81 Food preparation Assistant: 80 housekeeping: 77 Chef Assist: 63 Head Chef: 53 Sous Chef: 42 Pastry Chef: 39 Butcher: 36 Restaurant Manager: 35 25 23 18 19 17 15 13 12 11 10 8 8 8 4 2 Because of the availability of better jobs abroad In order to finish their university degrees Instability; totally doesn't have commitment towards work Ref. S. 4. a Within the last 12 months, was it very low, medium, high, or very high the amount of employees who left at each department? & what are the reasons behind this? 66

Copyright © 2013 The Nielsen Company. Confidential and proprietary. • ISGeneral EFFECTIVE TRAINING NEEDED? • Shopping THE INCAPABILITY OF LOCAL STAFF. Behavior 67

Ø In total 51% thinks there is no need for an effective training. Yes No 100 89 83 71 67 62 49 51 50 50 33 29 Ref. S 5 a In your opinion, do you think that employees are in need for effective training? at io ns ar st he r. L oc 1 Ot Fo od st ar s Fa st Fo od 2 3 od Fo m in rta te En Fa st st 1 op sh e st ar s ity ar rs st a 2 Co ffe e sh op 3 1 an t ur 13 11 Co ffe st st a rs ar s st 2 Re st a an t au r Re st ra nt au st Re ar s st 3 4 an t au r ar ar st To ta s l 17 st 51 49 43 38 t. C 40 57 en 60 87 Fa st Base: absolute value= Total: 345 Res 4 stars: 20 Res 3 stars: 46 Res 2 stars: 55 Res 1 star: 29 Coffee shop 3 stars: 6 Coffee shop 2 stars: 40 Coffee shop 1 star: 35 Entertainment City: 14 Fast Food 3 stars: 1 Fast Food 2 stars: 14 Fast Food 1 star: 30 Other Location: 55 Re Copyright © 2013 The Nielsen Company. Confidential and proprietary. IS THERE A NEED FOR AN EFFECTIVE TRAINING? 68

Captain/flo or manager 10% 46* 30* 27* 22* 16* Customer Service 72 13 18 18 69 Theoretical and practical training on the mechanism of works 11 7 7 14 Food preparation courses for the different types 9 80 78 45 *Absolute values Waiter/Wai tress 28% Chef assistant 13% All 14% Head Chef 16% Base: Abs value: 168 who thinks there is a need for a training Food preparation Assistant 18% Ref. S 5. b Could you please list what type of training is needed for each position? Captain/floor manager Head Chef Base : Absolute values; who thinks there is a need for a training Who needs the training Chef Assistant Position Food preparation Assistant Ø Out of the 168 respondents -who disclosed that there is a need for an effective training – 28% stated that “waiter/waitress” are the ones who are in need. At the same time 14% out of them said that all positions need an effective training. The last said that all kind of training is needed. Waiter/Waitress Copyright © 2013 The Nielsen Company. Confidential and proprietary. TYPE OF TRAINING NEEDED 19 Types of the training 69

Ø At the total level, the most positions mentioned related to the local labor capabilities are –in order- : Head chef, Waiter/waitress, Housekeeping, Chef assistant, Food preparation assistant, Kitchen steward employees, busboy & sous chef. Ø As for the “housekeeping”: 22% out of the 290 “who mentioned housekeeping when they talked about local capabilities” disclosed that local staff are incapable of filling this position. f he us C So oy pl em 10 d n ar tio ew ra Ki tc he n st pa pr e od Fo 11 s. B oy ee t as As sis ta ta n nt g ep in ef W te r/ W ai ke ai tre Ch ef ad 16 12 11 90 89 84 22 16 ss 16 88 78 us e Head Chef: 298 Waiter/Waitress: 293 Housekeeping: 290 Chef Assist: 290 Food preparation Assistant: 286 Kitchen steward employee: 286 Busboy: 248 Sous Chef: 282 89 84 Ch 84 No Bu Yes ho Base: absolute value=Those are the #s of respondents who mentioned each position in S. 6 a "mentioned it to comment on the capabilities of local labour" He Copyright © 2013 The Nielsen Company. Confidential and proprietary. CAPABILITIES & AVAILABILITY OF LOCAL STAFF Ref. S. 6 a In your opinion, for the following positions do you think our local labor is capable & available of filling them? If No, kindly provide us with the obstacles behind this incapability. 70

Copyright © 2013 The Nielsen Company. Confidential and proprietary. REASONS BEHIND THE INCAPABILITY OF LOCAL STAFF Ø 52% of the 65 respondents who mentioned the incapability of local staff to fill the “housekeeping” position stated that reason behind this is (Culture of shame). Same as the majority for the ones who mentioned (Waiter/Waitress), (Kitchen steward employee), & (Busboy) positions. Ø Majority of the ones mentioned head chef, Food preparation Assistant , Chef assistant & Sous Chef said the reason is “less experience in this area”. 52 housekeeping Head Chef Waiter/Waitress Kitchen steward employee Food preparation Assistant Chef assistant Bus. Boy Sous Chef 38 Base: absolute value=Those are the #s of respondents who mentioned each position in S. 6 a & disclosed that local staff are incapable Head Chef: 48 Waiter/Waitress: 48 Housekeeping: 65 Chef Assist: 31 Food preparation Assistant: 34 Kitchen steward employee: 45 Busboy: 31 Sous Chef: 29 38 35 32 29 24 23 18 16 13 15 10 10 6 10 10 4 6 6 8 18 15 16 1313 10 10 6 13 5 17 13 13 5 1213 10 9 13 9 6 6 2 Culture of shame Does not accept Local don't have Less experience in irresponsible work in this the will to work this area towards the work specific area for under pressure they are doing Ref. S. 6 b different reasons If No, kindly provide us with the obstacles behind this incapability. 13 4 66 33 Instability 2 3 33 Unavailability of local labor 71

Copyright © 2013 The Nielsen Company. Confidential and proprietary. General Shopping Behavior RECRUITING METHODS 72

Copyright © 2013 The Nielsen Company. Confidential and proprietary. RECRUITING PROCESS Ø As it is shown below the majority of all the respondent states that word of mouth is the most used method in order to recruit staff. Ø Word of mouth succeed almost all of the time, & also the same for “Newspaper Ad” & “Internet”. 39 31 * Absolute value WORD OF MOUTH NEWSPAPER ADS 13 INTERNET Base: Abs value 134* 106* 46* Yes 95 91 96 No 5 9 4 Word of Newspaper Internet mouth Ads Base: Absolute value: all respondents 345 Ref. S. 7 a When you have a vacancy(s), what is the process you follow to fill this vacancy(s)? Ref. S. 7 b Did you manage to fill the vacancy(s) using the mention method? And why? 73

Copyright © 2013 The Nielsen Company. Confidential and proprietary. REASONS BEHIND THE RESULT OF THE RECRUITING PROCESS Reasons behind the success Word of mouth 46 30 4 Easier and faster 13 5 Word of mouth 29 10 Lack of experience after interviewing them 5 To attaract people who is looking for a job Reasons behind the Failure 29 Internet 31 11 Would be relax since I trust the people I know, my friends, …etc Newspaper Ads 14 14 Newspaper Ads 20 Because of the law, that since the employee is They turn down the recruiting represents an obstacle against recommended by friends or after knowing the salary employing foreigners whereas current staff he/she would be they are better than local staff more than confident in himself ( -ve attutude) Ref. S. 7 b Did you manage to fill the vacancy(s) using the mention method? And why? 74

Copyright © 2013 The Nielsen Company. Confidential and proprietary. • BENEFITS GIVEN TO LOCALS VS. FOREIGNERS • LOCAL HOSPITALITY GRADUATE 75

Ø As it is shown below, 97% of all the respondents said that they offer “social security” for their employees. This is normal since law obligate them to do so. Ø 81% offer “salary increment” for their staff, whereas 76% said that they offer meals for the staff during their working hours. 97 81 76 Foreigner get more benefits Locals get more benefits Both get the same Refused 71 67 50 41 en t or kin gh Aw ou ar rs ds /b on us es Pr om M ot ed io ns ica l in su ra nc Tr e an sp or ta tio n 5 1 Base: 345 w la M ea ls w ith in th e Sa 23 em cr In ry cia l. S ec ur ity 17 So Copyright © 2013 The Nielsen Company. Confidential and proprietary. BENEFITS OFFERED BY THE MANAGEMENT Ref. S. 8 a Kindly choose from the following options what kind of benefits the management offers for the employees(both, locals & foreigners) Base: (Absolute value): all respondents 345 Ref. S. 8 b Which of the below statements best describe the benefits given to foreigner employees & local employees? 76

Ø In total 64% of all respondents answered with no; they don’t have local hospitality graduate. Ø 50% of respondents at Restaurant 4 stars said yes they have while the other 50% said the opposite. Base: absolute value= Total: 345 Res 4 stars: 20 Res 3 stars: 46 Res 2 stars: 55 Res 1 star: 29 Coffee shop 3 stars: 6 Coffee shop 2 stars: 40 Coffee shop 1 star: 35 Entertainment City: 14 Fast Food 3 stars: 1 Fast Food 2 stars: 14 Fast Food 1 star: 30 Other Location: 55 Yes No 100 89 80 69 64 57 64 58 53 50 50 57 50 50 47 43 43 36 31 20 11 st ar s ar Fo o st Fa od Fo st d 2 1 st ar Ref. S. 9 a Do you have any local hospitality graduate working at your business? Fa od Fo st Fa in m rta te En 3 en st t. C st 1 op sh e ffe Co s ity ar s ar 2 ffe e sh op 3 Co Co ffe e sh op ur an ta Re s st ar st st t 1 st t 2 an ur ta Re s s ar t 3 an ur ta Re s ta ur an t 4 st st To ar ta s l 0 Re s Copyright © 2013 The Nielsen Company. Confidential and proprietary. LOCAL HOSPITALITY GRADUATE 77

Copyright © 2013 The Nielsen Company. Confidential and proprietary. HOW SATISFIED WITH THE LOCAL HOSPITALITY GRADUATE? Ø As it shown below 81% of the 124 respondents interviewed are satisfied with the local hospitality graduate they do have at their venues. Occupation How satisfied with the local hospitality graduate Basis: Absolute values If there are LOCAL hospitality Graduate Satisfied Dissatisfied 124* 81 6 Restaurant 4 stars Restaurant 3 stars Restaurant 2 stars Restaurant 1 star Coffee shops 3 stars Coffee shops 2 stars 10* 26* 9* 3* 17* 60 85 73 56 67 88 20 10 8 Coffee shops 1 star 4* 75 25 Entertainment city Fast Food 3 stars Fast Food 2 stars 6* 0* 100 5* 100 6* 100 18* 89 Business Type Fast Food 1 star Other locations *Absolute Values Top 2 boxes & Bottom 2 boxes are used Ref. S. 9 c how satisfied with local hospitality graduate working at your business are you? 6 78

Copyright © 2013 The Nielsen Company. Confidential and proprietary. REASONS BEHIND BEING DISSATISFIED WITH THE LOCAL HOSPITALITY GRADUATE Ø Half of the 8 venues who have local graduate & they are not satisfied with said that the reason behind this is that these graduated people are not that qualified. 50 38 25 13 13 They are not qualified Low level of training No practical Since salary is not that. Unavailability of these they were exposed experience enough high, the staff local hospitality to(Vocational they hold(internship) themselves don't take graduate Training) it seriously *Base: 8 venues who have local graduate & they are not satisfied with. ** very low base S. 9 d You stated that you are dissatisfied with the local hospitality graduate working at your business, could you please tell us the reasons behind this? 79

THANK YOU! 80 Copyright © 2013 The Nielsen Company. Confidential and proprietary.