A KPMG report has suggested that eating out is high on the agenda for UAE residents, while more than half of the operators it spoke to are looking at expanding operations.
This is the second year that KPMG has released the findings of its F&B study that analyses food and beverage trends in the UAE – drawing responses from consumers and food and beverage operators across the seven emirates.
Brunch continues to remain a UAE institution with 66% of respondents indicating that they eat brunch at least once a month.
While the UAE’s food and beverage market may have been impacted by changing macro-economic conditions, the sector continues to benefit from the UAE’s positioning as a major global tourism and retail destination with opportunities for new concepts and restaurant formats.
KPMG in the Lower Gulf partner and head of retail Anurag Bajpai said: “The UAE is a dynamic F&B market with a growing number of exciting concepts, cuisines and restaurant formats, all of which are constantly vying for space. Despite market challenges, the UAE’s F&B market has remained resilient.
“To stay successful in the longer term, F&B operators must get the basics right – from identifying the right concept to delivering high quality food and service. Operators need to engage with their customers through the effective usage of social media and data and analytics to stay relevant.”
Food apps score highly with F&B operators – with 82% of operators indicating that food apps contribute positively to their business.
Food preferences were much the same as last year with Indian, Arabic and Italian topping the charts.
Despite the UAE’s reputation, only a third of respondents felt that a Michelin star influenced their decision to dine at a particular restaurant.
Both consumers and operators suggest that the highest end of the market remains somewhat protected from the short-term challenges reported elsewhere.
“The UAE remains a very exciting market for F&B operators, with 64% of operators surveyed indicating that they are looking to expand their footprint. The positive longer term outlook means continued investment and an increasing number of outlets, brands and concepts – all of which is good news for customers.”
“However operators may need to be reminded that simply focusing on geographical expansion could be unsustainable. The quality and appeal of the concept is what will ultimately determine success,” Bajpai concluded.
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