“It is not the same case in Dubai at the moment,” says Kuzin.
“Rent is not the only factor newcomers are willing to pay for, as he explains.
“Staffing, as usual, is a problem, because most of the staff are imported from worldwide and people are coming with some sort of [impressive] CV. So many places are opening and they’re jumping from place to place. They might get a better offer, they might not last long there, but still they are moving,” he adds.
At the rate Bulldozer is going, it is unlikely that rent or staff will hinder the group’s growth and, financially, Kuzin states that the firm is doing well in the circumstances.
“I wouldn’t prefer to go deep into the details but, as a group, of course we are growing on the turnover because we are opening more places and more people are coming. Compared to the market in general, yes it is being dropped down everywhere from beginning of 2016 and the first quarter,” says Kuzin.
“But we expect that from the first quarter of 2017, it’s going to start growing, because the cycle is that usually the crisis lasts for one year. We are always 5% up. I’m talking about the single venue operation [like for like], but with the additional business it’s growing much faster,” he continues.
“Yes, in 2016 every cheque has dropped down a little bit — not dramatically — but it has dropped definitely. You have fewer Saudi tourists because of the oil price — they feel some crisis. You have fewer Russian tourists, who are spending less money, [and] fewer Chinese as well. It’s a little bit changing but, like I said, the spending power in Dubai is quite strong compared to many other markets. The situation in Egypt and Turkey definitely helps Dubai. It’s always benefitting,” he adds.
Oil crisis or no oil crisis, spending power or no spending power, you will not see a shift in ultra-rich clientele at Kuzin’s elite creations anytime soon.
“We have quite a few interesting situations where people are coming and spending a big amount of money. We had one client who spent $300,000 at one of our Dubai outlets. I think it was big celebration, [perhaps] — a good deal happened. Or maybe it was just a normal night for them. For us, it was definitely not a normal night,” says the Russian, laughing.
Considering the millionaire has managed to build a hospitality empire in a strange country in the span of six years, we cannot wait to see what he has in store for Dubai in the near future.
In view of his VIP clientele, we daresay Kuzin has created a hospitality menu fit for kings — or as Russians call them, Tsars.
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