Ordering in
High ingredient costs have become ‘the norm’ in the Middle East, as numerous food stuffs unavailable in the region have to be air-freighted in; but is it worth paying through the nose for such products, or is there a compromise to be found? Lucy Taylor finds out
For a long time now, there have been rumblings from the Middle East’s F&B community about high ingredient prices in the region. But is this down to imports, suppliers or fluctuating exchange rates — and is there any way to avoid paying through the nose?
The limited availability of various ingredients on the local market plays a major role in sustaining high food costs. As Coral Hotels and Resorts corporate executive chef Michel Miraton points out: “Here you have to import 70% of your ingredients.”
Joerg Wickihalder, general manager for the Il Villagio Restaurants and Lounges complex in Jeddah, Saudi Arabia, adds: “Certainly food costs for high quality products, imported from Europe in our case, can lead to higher expenses due to the freight costs and custom dues. But then we can only comment on operating in Saudi Arabia, where procedures are somewhat different to other Middle East countries.”
Shangri-la Qaryat Al-Beri’s new executive chef Gary Robinson points out: “If you look at the food globally, you’ve got great food trends going on, like the back-to-basics approach of sourcing ingredients from farmers’ markets that you see a lot in Europe. Here that doesn’t happen.
“Then again, how much you spend depends on how much you order in and how sustainable your supply chain management is,” he reasons.
Holiday Inn Dubai — Al Barsha executive sous chef Sameh Youssef believes it is down to the individual outlet to adapt to high prices.
“It’s not a major problem for the Middle East; food prices have risen everywhere,” he claims.
“But we do try to be very controlled with our food expenses. I make sure I have balanced offerings on my menus.”
But chefs are the first to admit that there are some products they would like to serve that are simply too expensive or difficult to obtain in the Middle East.
Shangri-La’s Robinson adds that when it comes to importing foodstuffs, high prices do not necessarily guarantee you’ll receive a top-quality product.
“The main limitations are customs blocking shipments or flights being delayed,” he asserted.
“Everything coming in obviously has to go through customs clearance and because of the temperature and distance travelled, often the beautiful fresh fish I have imported from Scotland has to sit in customs for ages and will then spoil. So that can be frustrating,” he admits.
“If you’re paying for a great product, it all comes down to putting a huge amount of faith in the suppliers you source and trusting them to get things to you in time.”
Il Villagio assistant general manager Toni Riethmaier says finding regular, supplies of exotic fruits is a challenge.
“They are ideal for various tropical fruit cocktails,” he explains. “But since supplies are limited, most restaurants in KSA serve a standard selection of fresh beverages, which is a shame in a country where there are not too many beverage options in general.”
Imports from Europe are also proving pricey, thanks to exchange rate fluctuations; Coral’s Miraton cites “European cheese, jam, chocolate and pastry items” as being too expensive to purchase on a regular basis, and Holiday Inn’s Youssef adds fois gras to the list.
This exchange-rate change is of course a knock-on effect of this year’s most talked-about event — the global economic downturn.
But overall, the slowdown has not effected many lasting or significant changes in food costs, according to Il Villagio’s Wickihalder.
“So far, in the field of quality ingredients, we haven’t seen much impact from the current global situation. Yes, for a short period of time the high freight costs came down a little, but since oil prices are on the rise again, it’s pretty much the same as usual,” he says.
“We use many high-priced items, which of course have big influence — 75% of our food items are imported from Italy; but after two years of operations our guests understand the superior quality of these products and there is still a real demand for them.”
Holiday Inn’s Youssef agrees that food prices have been “up and down” during the downturn, but says these fluctuations appear to have “little effect” in the long run.
However Hotel JAL Fujairah Resort and Spa executive chef Arturo Cristiane says there are still deals to be found.
“Some food products coming from different countries are priced high, but others remain the same or can even be a great bargain,” he insists.
Coral’s Miraton agrees that certain products have been impacted, noting that prices have come down “for dry items in particular, such as vegetables, rice and pasta”.
“Meat is one ingredient that has remained expensive, but at least the price is stable,” he added.
Of course for any outlet, the key to maintaining consistent and manageable food costs is to build solid supplier relationships.
Holiday Inn’s Youssef notes: “I have worked very hard during my eight years in the UAE; nowadays I know and have good relationships with the right people who can give me special deals if something good comes up.”
But Shangri-La’s Robinson points out hotel chains have a major advantage when it comes to sway with suppliers.
“Shangri-La buys for three or four hotels so we are buying in bigger quantities than some other venues, meaning we have some purchasing power,” he says.
Robinson adds that buyers should remember “the pinch is being felt in the supply chain as much as with outlets”.
“Now we are challenging them to give us a better price — and we are actually paying less for our stuff than last year,” he reveals. “At the end of the day, they need business as well.
“But ultimately it’s all about buying sensibly and carefully.”
Al Fujairah’s Cristiane points out that buying seasonal items is a good way to find quality produce at affordable prices.
“I always look for quality, but to minimise the cost or keep on line I try to buy the right product at the right price and at the right time,” he notes.
“So it’s important to have good relations with food suppliers so we can work together to find the best-priced ingredients without compromising on quality.”
Il Villagio executive chef Emanuele Esposito adds that a common problem, for both operators and customers, is assuming a high price means high quality.
“In our restaurants, our target is to use products of a high standard and at the same time provide guests with authentic, Italian cuisine,” he comments.
But at the end of the day an outlet must turn a profit in order to survive, as Coral’s Miraton points out.
“High costs result in us having to reduce our margin in order to offer the best value to our guest, which means we take the hit,” he says.
So how can a balance be struck in the on-going tug-of-war between food quality and food costs?
JAL Fujairah’s Cristiane notes: “Any business runs to make a profit, especially nowadays. But the perspective that was perhaps lost over the past couple of years due to operator greediness should teach us a valuable lesson.
“I believe that a strong model will always be one where customers come back again and again; if a customer is not satisfied, they will not come back and over the long run that will affect the business more than it saved buying cheap products,” he points out.
“To have happy customers you need to put in the effort and find quality products at a competitive price; that way, you are offering the best product you can.”