Fine dining outlets told to downgrade to casual

The ability to serve alcohol makes the biggest difference to the profitability of casual dining outlets in the Middle East according to a report by hospitality consultancy, Viability.

Managing director, Guy Wilkinson, announced the report findings in conference at the Gulfood fair on 1 March in meeting room Ajman D.

Looking at all of the 260,000 F&B outlets throughout the Middle East, the report analysed the distribution of costs and revenues in three types of outlet: fine dining, casual dining and quick service outlets.

Results showed that, while fine and casual dining outlets were found to take between two and 10 years to achieve a return on their investment, quick service outlets generally gained payback within just four years.

The outlets best able to weather the recession were found to be those either with well-recognised brands, those associated with celebrity chefs, set in a good location or “offering an opportunity to see and be seen”.

In the current F&B climate Wilkinson advocated the downgrading of fine dining outlets to casual dining outlets as a wise strategy.

“Fine dining has really suffered since the recession. Some hotels such as the Park Hyatt are downgrading their fine French restaurants to bistros and I think this is a wise move in the circumstances.”

Alcohol was found to be a bone of contention with casual dining outlets in particular.

“It’s a little known fact that many of the Dubai mall restaurants were told that they would have an alcohol licence, only for it to be cancelled later on. It makes a big difference to profitability for casual dining outlets,” said Wilkinson.

Visit meeting room Ajman D to watch the rest of the conference, which will run until the end of the Gulfood show.