How have restaurants in Dubai reformed their strategy for 2019?

The F&B market in UAE, especially Dubai, is extremely dynamic where restaurant outlets are continually diversifying to meet the demands of multicultural customers and are trying to keep up with the latest trends.

How have restauranteurs overcome rising rents, VAT introduction, and market saturation?

These are concerns that undoubtedly challenge restaurants that haven’t found the winning formula of location, concept, and quality needed to succeed in this market.

With this in mind here are some of the steps the F&B industry has taken in 2018 –

  1. As residents are increasingly looking for better deals the restaurants have taken this into consideration and made various packages for people to enjoy.
  2. Experimentation with delivery only restaurants
  3. Restaurants embrace optimization. Seeking improved revenue per s.q./m, operators look at the floor plan and staff efficiency to combat rents.
  4. Restaurants have leveled-up their marketing and become more sophisticated in how they run messaging and promotions – particularly online.
  5. Healthy restaurants continue their rise in prominence. This especially includes increased vegetarian dining options.
  6. Restaurant concepts and menus have noticeably diversified as the popularity of standard fine dining concepts become less interesting to customers.
  7. Instagram continues to be the single biggest influence over the ‘look and feel’ of interiors and menu items. With more residents flocking to the social media platform for recommendations and suggestions, restaurants need to be present online in the coming years more than ever.

Dubai’s restaurant market is driven by tourism and restaurant reservations from visitors. Dubai had 3X more bookings than the earlier years during Christmas and New Year across the city in 2017. As tourism grows in 2018 so is the F&B market likely to grow along with it. (Source KPMG)

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