Rise of franchises 'killing' hotel breakfast trade

The rise of franchised superbrands like the International House of Pancakes (IHOP) and the recent arrival of the Cheesecake Factory in Dubai will ‘kill’ breakfast trade for hotels, GMs were told at the Hotelier Great GM Debate held on Monday 24 September at the Jumeirah Beach Hotel, Dubai.

Stefan Breg, chief worrier, Tribe Restaurant Creators explored the impact franchises were having on hotel breakfast and coffee trade.

“Cheesecake Factory is making AED70,000 (US $19,000) a day,” he said.

“These are US brands. Alshaya put posters up announcing its arrival. A lot of people here are US educated...they are victims of that spin.”

He uncovered that the mall-based F&B industry occupies approximately 33% of the market share, this included coffee outlets which people were now favouring over a hotel for coffee meetings.

“If you look at the global awareness of servers in the lounge, the hub; the heart and soul of your hotel – they’re not switched on – They are absolutely awful – I’m sorry to put it like that. The coffee guys, they’ve stolen that market.”

Chantel Moore, general manager, Amwaj Rotana agreed: “Jones the Grocer, Lime Tree Cafe and Baker and Spice. The three of those are concepts that could kill our breakfast offering.”

But Wajeed Bagwan, general manager, Lotus Hotel Dubai disagreed: “We can hold the resident guests through the right promotions and catering to their exact needs whereas outside it is all standardised,” he said.

Anders Dimblad, general manager, Banyan Tree, Ras Al Khaimah said the choice depended on the type of experience the customer was looking for.

“[Franchises] attract a different type of clientele. It’s a similar aspect to a fast food vs a fine dining experience. If you want a full breakfast experience, you’d go to a hotel. For a quick fix it would be IHOP.”