UAE homegrown F&B brand The Pizza Guys, located in Dubai's Business Bay, has become the first restaurant in the country and potentially the wider region to accept the controversial virtual currency, Bitcoin.
The brand launched by husband and wife duo Amber Haque and Rami Badawih celebrated its first anniversary on February 1, 2014, and has been accepting Bitcoin for a week and has already made transactions using the currency.
Speaking to Caterer Middle East, Haque said: "We have been actually thinking about this for some time and we have been reading about it – it’s in the news all the time. It may be controversial but it is gaining acceptance among a lot of people."
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She said her and Badawi are big believers in the "do-it-yourself" concept and entrepreneurial spirit, which Bitcoin emanated. She added: "It’s very entrepreneurial, and changing what people expect."
To explain Bitcoin, Caterer Middle East spoke to Tarik Kaddoumi, a Bitcoin enthusiast and tweeter behind the account @BitcoinMENA, who said: "Without getting into the complex mathematics that Bitcoin is constructed upon, this digital currency’s main advantage is in the simplicity of usage and speed of transaction.
"A user can send any amount to a merchant – $0.01 or millions – by simply touching a button on their phone in their Bitcoin Wallet, and within seconds it will appear on the retailer’s wallet, which represents that retailer’s account."
He explained that unlike credit cards, Bitcoin does not include any hidden charges and is almost completely free. "The mathematical complexity simply ensures that this transaction indeed takes place, gets verified, and secured to a point that is virtually impossible to break or manipulate," he said.
Haque said that there are people based in the region who possess Bitcoins and are "looking for restaurants and F&B outlets to accept BitCoins".
She said: "As a business it helps us cast a wide net, and it’s more about the entrepreneurial experience, and seeing where it goes.
"We are seeing a lot of excitement on Twitter from people who are BitCoin enthusiasts and just opening up a wider currency is very exciting, and I hope it will benefit us from a business perspective. We are a restaurant that is out to do things differently."
The menu at the outlet does not have prices in Bitcoins, simply in AED. Haque explained: "Bitcoin is a currency that is seeing a lot of fluctuation. One BitCoin right now is worth around US $682. One Bitcoin is divided into a 1000 – so we’re working in mili Bitcoins." Kaddoumi added: "The price fluctuations in Bitcoin has certainly worried many, but this is the natural behaviour in any new technology, young currency or stock price."
When diners wish to purchase anything from the menu with Bitcoin, the AED will be converted to its Bitcoin equivalent using an app. Once a QR code is generated, it is scanned, and the diner's Bitcoin Wallet completes the process. The payment is then complete.
Haque revealed this is a very fast transaction. "We are a restaurant at the end of the day, so what we’re planning to do with these BitCoins is convert them to US dollars because there are exchange houses which will buy BitCoins and give you dollars," she added.
Kaddoumi added: "The support for Bitcoin in the MENA region is pretty minimal at the moment. There are some Bitcoin and Cryptocurrency supporters groups in various cities like in Dubai, Amman and Beirut. Some of these groups boast large turnouts to their events in the hundreds.
"Although, support from businesses has not been witnessed, up until we have set up the system for The Pizza Guys in Dubai, which is arguably the first business to accept Bitcoin in the Middle East."
He said the main obstacle to the virtual currency's wider acceptance is in guiding businesses about how it works, and how Bitcoin can benefit business.
"The vast majority of enquiries come from curious individuals, business owners, who would like to learn more or try Bitcoin purely because it is new and because these individuals tend to have an 'Early Adopter’s' mentality to new technologies," he said.
Kaddoumi concluded: "Early adopters are indirectly rewarded by being part of the buzz and having their names mentioned next to 'Bitcoins Accepted Here'."
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