Robert: As the trend for speciality coffee continues to flourish amongst consumers in the region, brands are turning to local coffee companies for freshness and quality at competitive prices. We believe it is also beneficial for brands to work with local suppliers, where appropriate, to help sustainability and this topic is becoming more and more prominent. To ensure we receive the highest-quality speciality-graded Arabica coffee beans, we manage the full traceability by sourcing our coffee directly from Africa, Indonesia, India, Central and South America. Being a local coffee company allows us to achieve delivery of our freshly roasted, 100% Arabica coffee quickly.
Arnd: The major challenge is the price war because of new companies flooding the market with cheap products.
Ahmad: The challenge and opportunity for restaurateurs, hoteliers or suppliers is the dynamic and continuously changing and developing environment in the region. As a supplier we try to ensure our customers can provide quality and consistency in their offering.
How do different cities across the GCC nations differ?
Aparna: The demand for coffee can be quite different depending on the development pace of the region and the evolution of its coffee culture. In general, demand is still focused on mid-range equipment, vending machines, and instant coffee in regions like Saudi or Oman; while the UAE has already shifted to higher end machines such as La Marzocco and Thermoplan. However, the trend for speciality coffee and equipment is on the rise, especially in the UAE, Saudi and Qatar where people are ready to spend more for quality. Therefore the requests for La Marzocco coffee machines and Mahlkonig grinders are on the rise.
Robert: The Middle East is cultivating more and more coffee drinkers, making it one of the fastest growing markets in the world for coffee consumption. We have observed first-hand how consumers’ knowledge and appreciation for good quality coffee is constantly improving. With an increase in knowledge comes an increase in the desire for sophisticated coffee taste profiles, and we have noticed a higher demand, specific to Dubai, for freshly roasted single origin and microlot coffees. This notable trend is coupled with the need for freshness, therefore more and more coffee drinkers in Dubai are turning to brands that roast their coffee locally for a fresh tasting cup, which is great for us.
Arnd: In Dubai the variety of coffee blends used has increased significantly. Meanwhile, in Muscat and Jeddah we see an increasing demand for more coffee blend varieties.
Ahmad: We see differences in the types of travellers across the region, from leisure and family tourism in the popular events’ periods in UAE or holiday seasons in Levant and Oman, to religious tourism in key cities around the region. Ultimately the needs of these consumer groups will drive the offering. For example, leisure travellers may seek a unique and local experience, such as trying Arabic coffee, but still want to enjoy the comfort of having their usual cappuccino at breakfast or Nescafé and Coffee-mate in-room. For business travellers a coffee menu with options, consistency and speed of service may be key, whether at breakfast or as part of their banqueting experience.
Where do you draw the line with price versus quality debates, and how do you ensure that profit margins stay healthy?
Aparna: We find that the customers are less price-conscious when economy is booming. However when times are challenging, budgets are tightened. This is relevant to all the industries and coffee is no exception. We are extremely quality conscious and hence do not compromise. In such cases we do offer a variety of options to the clients on the basis of their price expectation. Each blend or SKU is true to its composition and price; we do not make adjustments for profit margins.
Robert: Our mission is to provide customers with the finest global Arabica coffee, roasted and delivered perfectly every time, therefore we only roast speciality-graded, 100% Arabica coffee beans and our quality is an uncompromised and key attribute. Due to our ability to roast our speciality coffee locally, we are able to offer competitive pricing.
Arnd: We always try to make our customer understand that even a single cup of coffee is beneficial in terms of profit margins a restaurant or a café earns. And, hence, outlets need try to focus on buying only the best possible quality of coffee. Outlets should ensure guests become loyal customers of their brands, returning for a second and third cup of coffee.
Ahmad: We always look at the total value our solutions provide to our customers and the total operational cost of a programme. If our customers win through increased sales, cost control or simplified operations, we both win at the end.
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