Comment: UAE ripe for entrepreneurs
Our guest columnist says the UAE market is now ripe for budding entrepreneurs to launch their own F&B businesses
In the last few years I have witnessed a phenomenal transformation of the restaurant business in Dubai and believe it’s the perfect time for local entrepreneurs to contribute to the success of home-grown restaurant concepts in the region. There are great examples of locally created concepts that have already proven this can be done — when done right.
The question I am often asked is whether it’s easier to bring in an international franchise than to develop a concept from scratch. Possibly, but there is such talent here in the region, why continue to franchise concepts from overseas? Why not develop our own that can rival international franchises and compete with them for outgoing franchise agreements in the GCC and beyond? Let’s look at what it takes to start a home-grown restaurant business in the UAE.
Firstly, it is important to have a deep understanding of the local market and the existing offering to see where the opportunities are, and what gaps can be filled.
Having travelled and lived abroad for many years, I have had extensive exposure to the restaurant business and developed strong opinions on what works and doesn’t from a consumer’s perspective. I believe there are niches in the UAE that haven’t been tapped, including mid-end casual dining that provides great quality food at an affordable price.
Coming up with the idea for a concept is relatively easy, executing it is far more challenging. You need to understand the value chain and what’s needed every step of the way. Many entrepreneurs find it hard to let go and delegate to experts, but that’s exactly what I recommend. It’s important to team up with the right people that can help you bring about and refine your concept to ensure it suits the fabric of the local market.
A decade ago you would have had to bring talent in from London or New York if you wanted to do something of international standard, but that’s no longer the case. There is outstanding senior advisory talent available locally to help entrepreneurs get their business up and running.
Once the team is in place you need to look at every facet of the business: from location selection, branding and interior design to menu planning, recruitment and marketing. In all of this it’s vital to look at how it will differentiate you in the market and this is where starting a home-grown business is quite different from franchising.
When you bring in an international franchise, you typically don’t just bring in the brand name, but everything that’s part of the concept, including menus, operating standards, recipes, uniforms, etc.
Yes, this is considerably less work than creating your own, but you need to consider the restrictions that come with attracting an international brand, such as licensing and marketing fees, mandates around — often premium — locations and stipulations for the use of specific ingredients and suppliers. This often puts more financial pressure on your start-up with costs you likely need to pass on to your customer.
When you create your own concept you have the opportunity to carve out every detail in line with your vision, which means a lot of freedom and flexibility that franchises don’t necessarily provide.
In the creation of your concept make sure to take the long-term view. If you want to be around, you need to build a sustainable business from the onset. At the end of the day, you need to offer a quality product at a good price to build a loyal following. To do this, you need good people, so recruitment and training is critical. For me, it all starts with the owner’s vision of the business and the service philosophy needs to be led from the top, not in any other way.
Lastly, it is important to pick the right partners and suppliers, from your fresh produce to materials and equipment. You need to carefully select who you want to be working with, and think about suppliers and partners that are a good match with your business.
For example, why not consider the more boutique local suppliers and vegetable growers the UAE now has? The local produce offering through the likes of Ripe and the Farmers’ Market is fantastic and we have most of what’s needed available right here, on our doorstep.
Dubai is in a very different place than it was five years ago. We are now in a similar situation as, for example, London and Los Angeles. We have access to tremendous local talent and are able to get virtually anything we need from anywhere in the world. This is why we see a general increase in quality everywhere you go in Dubai and I believe this makes for the perfect time to start a home-grown restaurant business.
Salem Bin Dasmal founded Silver Spoon Investments in 2014, a creative and innovative group that aims to develop home grown standalone restaurants across the UAE. Prior to this, he spent six years with the Dubai Government as well as His Highness Sheikh Mohammed Bin Rashid’s entities in different positions.