Keeping it casual
Those eateries with a nose for what customers want are thriving in the Middle East, particularly in the standalone restaurant sector where entrepreneurial drive and creativity is creating a fiercely competitive market – and this sector, it seems, should be on the radar of any hotelier serious about their F&B business.
Dubai’s bustling restaurant culture has certainly caught the attention of the world’s culinary echelons. Once again this year, Zuma ranked on the S. Pellegrino list of the world’s best restaurants, having been previously listed alongside La Petite Maison, while big names such as Nobu and The Ivy, not to mention newcomers such as Table 9, have quickly followed in the footsteps of the region’s increasing gaggle of celebrity chefs.
At the same time, the penchant for casual dining is playing a role in the success of the standalone restaurant and some experts believe that hoteliers need to adapt to the demands of modern diners in the region.
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“The point is this,” said Breg, in a recent address to hoteliers, “They are eating into your profit margin in your own neighbourhood. What makes this more challenging is that some of them are also entering the market not as fine dining or fine-casual, but as casual dining.
“If you live in Dubai, you’ll know these names and you will eat in those restaurants where previously you might have dined in hotel restaurants – and the frightening fact is that they are generating a lot of revenue. That can’t be new mania, that can’t be a growing population – it is vision and it’s eating away at your revenue.”
Breg estimates that casual dining has grown by a multiple of six in the last seven years. “That’s not 6% or even 60% but a multiple of six,” he stresses to get the message across.
As TKI’s During points out, operating licensed premises is a shield that can no longer fully protect hoteliers from the arrows of competition targeted at their market share. “A lot of these restaurants are making the same or more money even without liquor because they offer an experience – that is what people are really looking for.”
Willi Elsener, managing director F&B division of Bespoke Concepts, who has worked with Anton Mosimann at the London Dorchester as well as Jumeirah Group in Dubai, believes the hotel’s fixed F&B model and management structures can often fetter those with vision.
“Many standalone restaurants have to prioritise service to survive and deliver on a unique dining experience for guests,” he explains.
“Often the hotel model is a safe cocoon; they have captive guests and the restaurant is not seen as an individual profit centre but as part of the whole package. If the figures are not right then the first reaction is to cut costs. I strongly advocate looking at hotel restaurants as revenue drivers.”
Some well-known groups are prioritising their entire hotel business in this way. Kempinski recently announced its new strategy as “a food and beverage-led business.”
But what kind of experience should hoteliers be providing in their resorts? Has fine dining really had its day? Elsener points out that it’s often a generational preference, and while there is a sector of the market that expects fine dining, many modern travellers are looking for a home away from home. “Many hoteliers have reacted to the shift in the market and it’s encouraging to see the efforts being made to appeal to a younger audience,” he says.
One resort that has used its current refurbishment project to address this change is Le Royal Meridien Abu Dhabi. “We are addressing the needs of the market at this end by adding a new outlet focused on providing bakery and deli-driven experiences. The aim is to allow guests to be in and out in 30 minutes, which may not be possible in some more traditional styles of restaurants,” explains general manager, Shaun Parsons.
But how does casual dining translate in terms of interior design? What design concepts work well in hotels? “The key to casual dining is repeat business; that customers start to absorb the brand or outlet into their lives,” says Aidan Keane of international design group, Keane Brands.
“The problem with that is people need to have something to keep them interested every time they visit. So I would look at different seating areas, zones and lighting to keep things interesting.
“Layered on top of that is the feel of a space –it shouldn’t be overly formal, overly varnished; there needs to be a natural warmth. Worn-in is a good look, people like to feel there is a patina of use in casual dining.”
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