As one of the world’s leading gastronomic destinations, the United Arab Emirates has established itself as an international hub for dining concepts. A destination that always wants more, so it’s no surprise that its hospitality sector is largely driven by the food and beverage sector, with gross F&B spend expected to hit $44.5 billion. here 2023.
Indeed, by the start of 2022, full-service restaurant revenues will reach US$2.34 billion, fast-food restaurant revenues will reach US$4.51 billion, and cafe revenues will reach US$705 million.
Much of this comes from innovation and the development of sustainable business models, with growing health awareness within the consumer market, demand for convenience in today’s fast-paced world and an increase online food orders. But growth is not limited to “fast and now”, indeed, all food and beverage sectors such as full-service restaurants, fine dining, fast food, fast food, cafes, street vendors and home delivery have seen an increase.
Perhaps most critically, restaurants and hotels, which have been hit harder than most during the pandemic, have rebounded in ways that, while knowing Dubai we probably could have predicted, it was hard to say it with complete certainty. With the lifting of precautionary capacity and social distancing regulations, they reversed the decline during the pandemic, with a high rate of 22.66% over the period 2022-2023.
As a hospitality group committed to developing world-class hospitality and dining concepts, not only within our own Gates Hospitality brands, but across the emirate, the way the industry has continued to find ways to evolve is inspiring because it was necessary. Quite simply, we are stronger together.
One such growth factor was restaurant delivery to the consumer, which with a forecasted market volume of US$954 million in 2022 is expected to not only remain, but dominate the market. Restaurant owners who relied on greeting customers in person have turned to their websites, social media accounts and mobile apps to offer online ordering, while others are building delivery-only restaurants and kitchens in cloud.
The growing demand for pop-up cafes, diners, street stalls and kiosks that has swept across the UAE and Saudi Arabia in recent years is also transforming restaurant businesses. Crucially, this “pop-up element” doesn’t come at the expense of quality, with chefs putting their own spin on food trucks and bringing authentic, quality food to the sidewalks.
Daring to be different, another growing trend in the UAE is experiential dining, which combines dining and entertainment. Licensed interactive concept restaurants are becoming increasingly popular in the area with concepts such as bowling, video games and more, encouraging diners to socialize while they eat.
F&B businesses are embracing new ideas with new approaches in inspiring ways, and there’s a lot more to come. This changing landscape will be the subject of the F&B Stakeholder Summit to be held at The Hotel Show Dubai 2022, May 24-26, which will bring together leading experts, practitioners and panelists in one place, at any given time, for a series of very focused meetings. and candid live discussions.
Join me at The Hotel Show Dubai, where we will explore the latest trends in F&B concepts, design, sustainability, CX in F&B, ethical hospitality and supply chain opportunities, as well as how to meet the challenges facing the industry. Register to attend.