Can outlets outside hotels be successful?

Thomas Klein Group's Daniel During.

Daniel During, managing partner at Thomas Klein Group, a professional turnkey consultancy in the hospitality, entertainment and leisure business, says outlets do not necessarily need a hotel location to be successful — but they do require passionate restaurateurs behind them.

Here in the UAE, we’re spoiled for choice when it comes to dining options — but how many of your favourite restaurants are located outside of hotels?

Fast food chains and coffee shops aside, why are there so few independent restaurants?

Part of the problem is that small, independent outlets don’t have the marketing budgets of their larger rivals, but that still doesn’t explain why we tend to gravitate to hotels for our dining.

There are some successful free-standing restaurants — More Café, Smiling BKK and Elements are all excellent examples of independent restaurants — but they are hugely outnumbered by those based in hotels.

It is a model that is quite contrary to other areas of the world, particularly in large, urban areas.

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There are some barriers that make the establishment of independent restaurants challenging, but we find that in each instance, these barriers can be overcome through market experience, local business acumen and a good dose of creativity.

As independent restaurants cannot serve alcohol, that can prove challenging in attracting a certain segment of the population.

While the rules are not likely to change any time soon, the issue can be overcome if one considers that there are many segments of the population that would still find the venue attractive: families, non-drinkers or those visiting the outlet during times of day when the consumption of alcohol is less common.

Most independent restaurants in other parts of the world — let’s take Europe as an example — are run by one or two investors who probably work there, often for extremely long hours, and are absolutely passionate about what they do.