Full-Service Restaurants in the United Arab Emirates

PROSPECTS

Players revamp their operations to remain competitive

Full-service restaurants continued to see slow but stable current value growth in 2019. As consumers continued to spend cautiously due to the implementation of VAT in 2018 and slow economic growth, this challenged restaurant operators to maintain sales growth.

Asian, Middle Eastern and pizza full-service restaurants remain popular

Asian full-service restaurants maintained the largest value share within full-service restaurants in 2019, despite various challenges. These outlets appeal to most people in the United Arab Emirates.

Fine dining restaurants face challenges but are more confident in the future

As the United Arab Emirates remains attractive for its luxury experiences in retail and hospitality, the country has attracted Michelin-starred chefs from around the globe to launch their concepts in the tourist-driven emirates of Dubai and Abu Dhabi. In addition, as luxury hotels aim to offer unique premium services, they feature Michelin-starred chefs on a rotating basis to maintain their attractiveness.

COMPETITIVE LANDSCAPE

Regional franchisers hold strong positions

Americana Group continued to hold the biggest value share in full-service restaurants in the United Arab Emirates in value terms in 2019. The company is a leading franchiser which manages a range of limited-service and full-service restaurant brands in the Middle East.

Independent players continue to dominate full-service restaurants

However, it should be noted that full-service restaurants remains a fragmented channel, with independents accounting for the majority of value sales, outlets and transaction volumes. Foodservice is a key area in which small and mid-sized players invest and operate, and aspirational expatriates from Asian and Middle Eastern countries often invest in starting restaurants to meet the demand for affordable and traditional food for these nationalities.

Full-service restaurants use online promotional codes to attract consumers

The competition intensified in full-service restaurants in 2019, as more restaurants aimed to gain a share of consumers’ pockets. Full-service restaurants continued to follow the larger consumer foodservice trend of offering discounts on online delivery platforms and using promotional codes to maintain the volume of orders.

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