The GCC is on a caffeine rush posting an 85% rise in the demand for coffee in the last three years. Caterer Middle East investigates.

Coffee consumption in the GCC has more than tripled in the last decade, registering an 85% increase in the last three years alone.

Last month, Caterer Middle East received notifications of the opening of another Costa Coffee branch in Dubai Marina, and the first ones for RAK and Al Ain, proving demand is not waning. But is the demand for coffee or for franchises?

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Lifestyles are changing, asserted Stefan Breg at Hotelier’s Great GM Debate last month – who commented that hotels had lost their coffee businesses to the “coffee guys” – because “coffee servers in your lounges, the hub, the heart and soul of your hotels, are not switched on.”

It appears customers want knowledgeable staff and a speedy service. Hotels are not oblivious to this. In fact some, like IHG have even gone so far as to have a franchise operate within it!

The rise of the franchise
“There’s nothing wrong with having a franchise in there – eventually they do very good sales and pay us the amount of money we need for the lease,” says an IHG representative.

Some even believe the franchises are to be thanked for the growing understanding and awareness of coffee in the region.

“The culture of ‘espresso’ is luckily growing in UAE, thanks to the millions of tourists, thanks to the growing number of expats and thanks to the various franchises quickly opening,” says Ivana Provasio, brand manager Moka General Trading.

“Convenience” is also the reason behind the success of the rapidly growing instant coffee market. But according to Ryan Godinho, national events manager, UAE coffee events, growth in both these areas is down to market infancy in this region.

“Our research shows that there is not much demand for coffee in its basic form, with little appreciation for espresso or black coffees in this region. As yet, it’s a fairly diluted market, with coffee drinks being sweetened or milk based,” he says, adding that one of the problems is that baristas will make the coffee to the standard they’ve been trained to but not consistently.

“I’d say there are about 10% to 15% of baristas out here who actually want to be baristas – the rest seem to be doing it to get along. The average pay for a barista in the UAE is around AED2000 (US $500) a month. That compared to a market with a thriving café culture like Australia where baristas earn as much as $500 a week.”

RAW Coffee’s owner/director Matt Toogood, believes the region is being forced to settle for sub-standard coffee, adding that there is a difference between a “barista” who understands coffee and a “coffee maker” of which you find many in this region.

Baristas vs Coffee Makers
“People who are making it [coffee] aren’t empowered. In some places they aren’t even allowed to taste it. How can you make a good quality coffee without constantly tasting it?” he asks.

Kim Thompson, owner/managing director of RAW adds that often even if he/she cares for the product and wants to do a good job, his/her efforts are often thwarted, particularly in hotel environments where the purchasing department makes most of the choices when it comes to equipment and product sourcing. Provasio shares this view, adding that most of the time, people don’t care about quality “they just go with the cheapest cup of coffee”.

Just another expense?
But this is changing says Toogood.

“Every hotel will tell you breakfast coffee in the morning is an expense and is treated as such, but maybe in their five-star restaurant the manager or exec chef will say it’s not good enough for what I am providing.”

Lime Tree Cafe a well-loved standalone concept in Dubai has its own customer base – whether it be corporate clientele looking for coffee on the go at its Media City outlet, or people looking for a relaxed coffee experience at its branch in Al Quoz. Either way, it believes each environment has its own customer base it targets and appeals to.

Subin Dharman, EAM food and beverages at Ritz-Carlton, Doha agrees: “They’re [hotel customers] not only looking for coffee but the whole coffee experience. The hotels still have their clientele who come in for the experience, and not just to have a coffee in a take away cup on the go.”

Ancis Romanovskis, sales manager for Coffee Planet, believes the rise of the franchised brands is forcing hotels to up their game: “They are definitely starting to improve their coffee quality as the pressure from their clients increases. With the rise of independent cafés and coffee shops, the hotels need to step up their game and remain competitive.”

There is little doubt that this will involve some heavy training to turn “coffee makers” into “baristas”.

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