Last month, several hot topics affecting the Middle East's food and beverage industry were discussed at the Hotel Show's Seven Star Conference in a panel discussion moderated by freelance journalist Guy Roukaerts.

First up was the topic of Sharia-compliant and "dry" F&B operations, a subject that has been in the regional spotlight recently due to reports from Egypt that the Grand Hyatt Cairo had banned the sale of all alcoholic beverages at the owner's insistence.

Executive chef at Tamani Hotel Essam Nabhan spoke about how his property had never noticed any negative impact on its business as a result of not serving alcohol.

"[Being a dry hotel] decreases the beverage potential, but it also minimises storage, wastage and cost and therefore delivers a good bottom line," he claimed.

"You have to rely on creativity to create an atmosphere, so the outlets need to be vibrant. And of course this encourages guest interaction, so guest retention actually goes up with this approach."

While Nabhan made a strong argument, I couldn't help but wonder whether a dry concept could really compete effectively in a market like Dubai, where so much F&B revenue is generated by catering to the recreational needs of the resident expatriate community.

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It seems this concern is shared by executive chef Shankar Paramasivam at the Angsana Hotel and Suites Dubai.

"Generally, as beverage sales account for 60% of restaurant billings versus 40% for food sale, going dry would see a lower profit margin," he said.

"It would mean lower revenues and therefore reduced profits. It may also have an effect on staffing levels," agreed Hilton Dubai Jumeirah's executive chef Steven Benson-Flower.

The second issue on the conference's agenda was the growth of a phenomenon that general manager and head taster of The Taste Department Stephan Grey termed "smart/casual dining". This concept was exploding, not only in the Middle East, but around the world he said.

"Consumer preferences are shifting from QSR (quick-service restaurants) to a more smart/casual experience rapidly," he added.

Sarah Gain is the editor of Caterer Middle East.

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