- Overall F&B market in UAE has grew at a health rate in the past, and is recovering at a higher pace from the pandemic led disruptions. The casual dining and social drinking concept are mainly popular among western immigrants living in the Emirate
- Post pandemic, demand for healthy food and vegan food have accelerates, which can be leveraged to bring in a USP for the store, vegan burger, or healthy food in the menu can help market the outlet. Consumers spend about 14% in food and drinks in UAE and the spending is expected to grow at a CAGR of 3.2% (for alcoholic drinks) and 3.1% for food and non-alcoholic beverages
- Casual dining market in UAE is projected to grow at a CAGR of 3.6% during 2022–2026, and will reach total trade value of US$1,265 million. The sector will take another 4 years to offset the impact of pandemic related disruption, as the emirate is expected to surpass pre-pandemic sales only by 2026.
- Shift towards food delivery has created a cascade of trends to improve customer experience and increasing traffic. To improve the customer experience in their restaurant, and a necessity to ensure hygiene, food outlets are investing in technology. Over 60% of the restaurants mentioned their willingness to invest up to 20% of their revenue in technology
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The United Arab Emirates (UAE) is a melting pot of cultures, tastes, and culinary experiences, making it an enticing destination for food enthusiasts and restaurateurs alike. With its vibrant dining scene and diverse population, the UAE presents a fertile ground for introducing new dining concepts. In this blog post, we delve into the market assessment of launching a casual dining concept in the UAE, exploring key factors that contribute to its potential success.
1. Understanding the Market Dynamics
Before venturing into the UAE’s dining landscape, it’s essential to grasp the market dynamics, including consumer preferences, dining trends, and competitive landscape. The UAE’s cosmopolitan population comprises locals, expatriates, and tourists, each bringing their unique culinary influences and preferences to the table. Conducting thorough market research enables restaurateurs to identify gaps in the market and tailor their offerings to meet the evolving needs of consumers.
2. Consumer Preferences and Trends
The UAE’s dining scene reflects a blend of global influences, with consumers gravitating towards diverse cuisines, innovative concepts, and experiential dining experiences. While traditional Emirati cuisine holds a special place in the hearts of locals, the population’s international palate fuels demand for a wide range of cuisines, from Asian fusion and Mediterranean to American comfort food and beyond. Additionally, consumers increasingly prioritize health-conscious options, sustainability, and ethical dining practices, shaping their preferences and influencing their dining choices.
3. Competitive Landscape
The UAE’s dining landscape is characterized by a diverse mix of restaurants, ranging from fine dining establishments and celebrity chef-led ventures to casual eateries and food trucks. Understanding the competitive landscape is crucial for positioning a new casual dining concept and differentiating it from existing players. Analyzing competitors’ offerings, pricing strategies, service standards, and customer feedback provides valuable insights for shaping the unique value proposition of the new concept.
4. Location and Accessibility
Choosing the right location is paramount for the success of a casual dining concept in the UAE. Factors such as foot traffic, proximity to residential areas, business districts, tourist attractions, and transportation hubs influence the accessibility and visibility of the restaurant. Identifying high-traffic areas with a favorable demographic profile and aligning the concept with the surrounding neighborhood’s vibe contribute to its appeal and customer reach.
5. Cultural Sensitivity and Adaptation
Cultural sensitivity plays a significant role in the success of any dining concept entering the UAE market. Respecting local customs, dietary preferences, and culinary traditions while offering an innovative and authentic dining experience is key to winning the hearts of both locals and expatriates. Incorporating local ingredients, flavors, and culinary techniques into the menu demonstrates a commitment to embracing the UAE’s rich gastronomic heritage while adding a modern twist.
6. Operational Considerations
Launching a casual dining concept in the UAE entails navigating various operational considerations, including regulatory requirements, licensing procedures, staffing, supply chain management, and marketing strategies. Collaborating with local partners, hiring skilled personnel, and ensuring compliance with health and safety standards are essential elements of successful restaurant operations in the UAE.
Table of Content:
Market Analysis
- UAE Casual Dining market overview
- Casual dining future trends
- Trends on dining out
- Trends on delivery
- Structure of the market for casual dining
- Fast changing buying/ consumer habits
- Disposable income / location / buying habits / preferences / characteristics and traits going forward
- Risk analysis
Competitor Assessment (Supply side analysis)
- F&B demand and trends
- Average sales/ ticket size, peak busy periods, fast moving items, etc.
- Potential for dine in, delivery and external catering to parties and events
- Pricing, positioning and product features
- Traffic times — peak times
- Location of stores, central kitchen, other logistic needs
- Employee strength, nationality overall service standards, etc.
Demand Side Considerations
- Average spends
- Price considerations
- Delivery vs walk-in
- Lunch time vs dinner time preference
- Extent of the menu
- Need gaps, particularly for superior products
Product and marketing activities (Extension of Competitor Assessment)
- Menu analysis — what items in the menu will likely work in this market
- Target market definition — what segment of the market should the restaurant target
- Pricing — perspective on pricing, with recommendations for specific menu items, based on competitor pricing or differently
- Need or otherwise for flexibility in pricing
- Service standards and ‘Diner Experience’
- Other elements in the marketing mix that could facilitate market penetration, and establish the brand
- Supply Chain, Production and Tech related analysis
Location and Rental Analysis
- Recommended potential store location types across UAE
- Retail F&B rentals across location types in UAE
Opportunity Assessment
- Critique existing concept proposal for the Project
- Suggest unique selling points and key attractions for the Project
- Propose concepts for the different units of the Project based on the demand analysis findings
- Assess the key success and risk factors
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