The Expo 2020 win is cause for celebration, but how much will it really affect the F&B industry in the Emirate? (Photo: Karim Sahib/AFP/Getty Images)
Smalberger agreed: “There is nothing like a bit of positive competition amongst market leaders to up their game and deliver better quality. While this process is in the making, it will automatically uplift standards in the market place. I also believe that the combined impact of Vision 2020 & Expo 2020 will deliver enough demand to sustain the F&B outlets that will open in the long run.”
Campbell said while there is always the risk of oversaturation, in Dubai this may be less likely given the development of the industry is not solely reliant on Expo 2020.
However, he cautioned: “The F&B industry needs to watch the industries that support their business, ie the vendors. Can they maintain product supply relative to increased demand, maintain quality, and maintain international standards of supply chain logistics? How will they cope when the surrounding waters are near overfished? How will they cope with huge increase in demand for raw materials when 80-90% of everything is already imported? Will there be a surge in the ‘fly by night’ vendor? Will we see a move to manipulate prices to capitalise on Expo regardless of actual market reality?”
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Smalberger also touched upon infrastructure. “Short-term I think it will boost local establishments. If we want to prepare ourselves, we should take into account the change in infrastructure needed to supply the demand that will undoubtedly increase as the Expo approaches. Companies should consider how new establishments, stadiums, restaurants and hotels will be used once the Expo is over in order not to have a situation where there will be no use for them once the event is done.”
Campbell concluded: “Growth is not dependent on Expo alone; there is a dual-pronged approach — the event in conjunction with growth in Dubai tourism. Post Expo 2020, the boom in tourism should be sufficient to carry and hold the increased number of outlets. However, the success and failure of outlets would not so much depend on the sudden scarcity of patrons post-2020 but on their ability to consistently provide a dining experience to patrons.”
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