Full-Service Restaurants in the United Arab Emirates

PROSPECTS

Changing market dynamics lead players to revamp operations

Continued depressive economic conditions during the year led consumers to spend more cautiously, which exacerbated restaurant operators’ challenges to maintain their top-line growth. Restaurants also faced increased competition in key emirates, mainly in Dubai, as the number of restaurants continued to rise there at a much faster pace compared to the general increase in population.

Asian and pizza full-service restaurants remain popular

Pizza full-service restaurants posted the highest growth during 2018, as consumers looked for casual dining experiences catering to the entire family or group of friends. Pizza full-service restaurants remained relevant by making menu changes featuring quinoa salads, seafood pizza and gluten-free ingredients that reflect larger consumption trends in the country.

Fine dining restaurants face challenges with compromised margins

As the United Arab Emirates remains attractive for its luxury experiences in retail and hospitality, the country has been appealing to Michelin-starred chefs from around the globe to launch their concepts in the tourist-driven emirates of Dubai and Abu Dhabi. Additionally, as the luxury hotels aim to feature unique premium services, they have been featuring Michelin-starred chefs on a rotating basis to maintain destination attractiveness for the key emirates on par with that of other global destinations.

COMPETITIVE LANDSCAPE

Local and regional franchisers are the leading chained players

Egypt-based Americana Group, a leading franchiser that manages a range of fast food and full-service restaurant brands in the Middle East, holds the biggest value share in the full-service landscape. In addition to being a key franchiser for global brands, Americana Group has a packaged food and an unpackaged food segment in its portfolio, which gives it a string sales/supply chain competency and self-sufficiency in material sourcing for its foodservice operations.

Independent players continue to dominate full-service restaurants

This foodservice category remains fragmented, with independents accounting for the majority of value sales. According to Dubai Department of Economic Development, the number of licenses issued to dining venues and cafés increased by 10% in 2018.

Full-service restaurants use online promo codes to encourage dining in a diversified foodservice landscape

Competition intensified in 2018, as more restaurants aimed to gain a share of the consumer’s pocket. Full-service restaurants continued to follow the larger consumer foodservice trend of offering discounts on online delivery platforms and using promo codes to keep orders up.

Files are delivered directly into your account within a few minutes of purchase.