The Road Ahead
The Restaurant Industry
in The
Dubai Restaurants Group
as the representative entity of the food & beverage industry in the vibrant city of Dubai is immensely delighted to be partaking in and driving the survey from POSist (a global cloud-based restaurant technology platform) within our member network as a start. We have had very wholehearted participation through responses from restaurants in Dubai. There are some very interesting and encouraging trends coming out of the report, especially around the rise of online ordering, cloud kitchen, and the relevance of technology in the F&B space. Extremely proud to be associated with such an initiative that would drive the industry forward with a clear focus. Thank you for the contribution and being part of this unique pathbreaking exercise. Watch this space for many more such initiatives.
Founding Board Member of Dubai Restaurants Group.
UAE
Naim Maadad
Co-founder and CEO of POSist
POSist Restaurant
Industry & Market Evolution(PRIME) Report is an attempt to bring out reliable information on the trends shaping the future of the restaurant industry. This time we have conducted an in-depth study of the UAE market in partnership with Dubai Restaurants Group. The report examines the industry sentiment amid the pandemic and steps taken by restaurant operators to prepare for long-term growth. UAE has firmly established itself as a gastronomic hub, boasting the presence of popular global brands and international chefs across a wealth of F&B concepts from around the world. The report outlines the huge opportunity in the cloud kitchen segment. It is not surprising that 70 % of restaurateurs are willing to set up a virtual kitchen in the UAE. By exploring investments in cloud kitchens and building an efficient delivery setup, F&B outlets will be able to improve unit growth, add more touch points to connect with diners, and above all, build a sustainable model in the longer run.
Ashish Tulsian
Top Findings
Top Findings
Cloud Kitchens- Silver Lining in The UAE’s F&B Industry
The Middle East and North Africa (MENA) are one of the most lucrative parts of the world for online food delivery; data from Statista shows that in the UAE alone, the revenue from food delivery is projected to reach USD 1.2 billion in 2021.
The pandemic has been a learning experience for the industry and has significantly helped the restaurant industry handle inefficiency. By exploring investments in cloud kitchens (or ghost kitchens as referred to globally) and building an efficient delivery setup, F&B outlets potentially increase unit growth not only to fill the void left by closed restaurants but safeguard it against the changing vagaries driven by this and any future global pandemics.
We asked restaurants if they had additional funds to invest back into the business what areas they would immediately pick. 70% of the respondents placed their bet on setting up a Cloud Kitchen or a delivery-only outlet for their brand. Furthermore, six in every ten restaurants expect 40% or more of their revenue to come from deliveries in 2021
A Shift From Dining Out To Dining In
Even though we have entered a whole new phase after the vaccinations have started rolling out worldwide, with comparatively fewer restrictions, most consumers still prefer to stay indoors to maintain social distance. Consumers still prefer to take additional measures to keep safe, like traveling only when necessary and restricting their food cravings to online-ordering.
As consumers avoid stepping out in response to the Covid-19 pandemic, restaurants observed that almost 66% of diners prefer to order online more than ever. Further, 57% of restaurants shared that diners are now shifting towards healthier cuisine. The growing online ordering trend is supported by the rapid growth of hyperlocal delivery players such as Talabat, NowNow, InstaShop, or Careem Now across the region.
66%
of diners prefer online ordering as an alternative to eating out
A Road To Recovery
Cloud Kitchens- Silver Lining in The UAE’s F&B Industry
One in three restaurant operators in the UAE are now running at than the pre-COVID level.
Restaurant sales continue to improve as customers grow more comfortable with dining out. One-third of restaurant operators surveyed mentioned that they are now operating at 60% of their pre-COVID-19 revenue levels (as of March 2021).
The numbers have been solid at fast-food and fast casual restaurants, where the recovery has been most forceful as consumers flock to drive-thrus and opt for delivery and takeout.
At what percentage of your pre-COVID revenue are you currently operating?
Top executives of restaurant businesses in the UAE indicated a revival of business sentiment and a gradual rise in expected revenue performance in 2021. After a challenging year for res taurant s , both local and international chains feel optimistic about growing revenues. Nearly 75% of restaurant operators expect the revenue to increase as compared to the pre-COVID time.