They have invested heavily in the business in terms of both time and money and, while they’re not running the restaurant as a charity, tend to understand that in the short term it is important to focus on the food rather than the financials.
Once a restaurant has got its concept right and established a reputation, profitability follows. Restaurants really need this crucial growth period in order to thrive in the long-term.
In the UAE, business laws require a local partner, thus adding an extra person to that critically-important launch team.
Finding someone who shares that passion for food and is prepared to support the concept through thick and thin can be difficult and time consuming.
A local partner can offer advantages in terms of pushing forward all the right funding, as well as easing some of the red tape and administrative work.
But as many hail from a pure business background, it can be hard for them to grasp that a revenue stream will not be immediate and when it comes to lifestyle products — hotels, fashion, food — and that heart is as important as head in these instances.
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The UAE has been very successful at developing magnificent, jaw-dropping hotels, so there is passion out there for great concepts.
A hotel is a very large investment with a very long return, so if we can channel some of that passion into restaurant projects, it would bring a new dynamic to the UAE landscape.
Clearly a restaurant needs to make money, but it needs to be run by a true restaurateur.
Quality and reputation are not short term gains; today’s customer is savvy and while they may not all be expert chefs, they can still tell when corners have been cut with cheaper ingredients or sub-standard fittings.
If you’re running a fast food enterprise, customers expect value and realise that value prospect permeates every aspect of the business — from the food products to the types of seating used.
However, customers who are paying a higher premium expect the restaurant to deliver. If you don’t deliver, reputation suffers and your investment equity simply drops.
Another reason that hotel restaurants tend to dominate is that they are designed, built and managed by people who understand the industry.
Often, buildings such as office blocks and even shopping malls are built with space allotted to restaurants, but there is a lack of consideration in terms of how the outlets will actually operate.
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Nov 24, 2009
Restaurants in the Middle East will never be as successful as those in major culinary capitals like London and New York, because the people who own them simply don't care about operations - they're only interested in the revenue it brings in. How many restaurants do you know in Dubai for example...