Marking the new year, Dubai's Food and Beverage sector is moving into spaces. New openings and dipping rents are making it the best of times for the industry. And with Dubai Expo 2020 in line, it just gets bigger and better.
F&B businesses are moving into spaces at newly delivered buildings or picking up those vacated by other businesses at the older building. Two new licenses were being issued a day for new F&B services across the UAE last year. Of these, 868 were for cafes, 755 for restaurants, and 671 for dessert-focussed servings. The numbers represent a clear spike after a “period of slowdown
Bluewaters when “Ain Dubai” opens, Nshama Town Square, the Dubai Hills community and Dubai Creek Harbor are the upcoming projects. The Sunset Hospitality Group recently landed a prominent location for its latest fine dining interest. The “Sushisamba” will have pride of place on the 51st floor of the Palm Tower, which is set for completion next year. By the end of October, 24 restaurants will be open in the UAE, 16 being in Dubai.
Vikrant Rohatgi at KPMG Lower Gulf said, “As a result of the growing popularity of delivery, as many as 32 percents of operators attribute more than a quarter of their revenue to this channel. A number of operators have seen double-digit growth in their delivery business year-on-year. This suggests that delivery is an increasingly vital component of the F&B business, as food-tech players and delivery platforms work to increase their presence and enhance the customer experience.”
Yousef Khattar, Managing Director of Tastebuds Group said, “Anyone interested in entering this market would be wise to be very selective in working with a solid franchise that resonates well with UAE residents. Realizing the RoI (return on investment) is very relative to the scale the franchisee wishes to develop its brand. There are so many regional F&B franchise brands within their respective regions that are yet to enter the Middle East.”