Project Description

Market Assessment of a Casual Dining concept entry into the UAE market

  • Overall F&B market in UAE has grew at a health rate in the past, and is recovering at a higher pace from the pandemic led disruptions. The casual dining and social drinking concept are mainly popular among western immigrants living in the Emirate
  • Post pandemic, demand for healthy food and vegan food have accelerates, which can be leveraged to bring in a USP for the store, vegan burger, or healthy food in the menu can help market the outlet. Consumers spend about 14% in food and drinks in UAE and the spending is expected to grow at a CAGR of 3.2% (for alcoholic drinks) and 3.1% for food and non-alcoholic beverages
  • Casual dining market in UAE is projected to grow at a CAGR of 3.6% during 2022-2026, and will reach total trade value of US$1,265 million. The sector will take another 4 years to offset the impact of pandemic related disruption, as the emirate is expected to surpass pre-pandemic sales only by 2026.
  • Shift towards food delivery has created a cascade of trends to improve customer experience and increasing traffic. To improve the customer experience in their restaurant, and a necessity to ensure hygiene, food outlets are investing in technology. Over 60% of the restaurants mentioned their willingness to invest up to 20% of their revenue in technology

Table of Content:

Market Analysis

  • UAE Casual Dining market overview
  • Casual dining future trends
  • Trends on dining out
  • Trends on delivery
  • Structure of the market for casual dining
  • Fast changing buying/ consumer habits
  • Disposable income / location / buying habits / preferences / characteristics and traits going forward
  • Risk analysis

Competitor Assessment (Supply side analysis)

  • F&B demand and trends
  • Average sales/ ticket size, peak busy periods, fast moving items, etc.
  • Potential for dine in, delivery and external catering to parties and events
  • Pricing, positioning and product features
  • Traffic times – peak times
  • Location of stores, central kitchen, other logistic needs
  • Employee strength, nationality overall service standards, etc.

Demand Side Considerations

  • Average spends
  • Price considerations
  • Delivery vs walk-in
  • Lunch time vs dinner time preference
  • Extent of the menu
  • Need gaps, particularly for superior products

Product and marketing activities (Extension of Competitor Assessment)

  • Menu analysis – what items in the menu will likely work in this market
  • Target market definition – what segment of the market should the restaurant target
  • Pricing – perspective on pricing, with recommendations for specific menu items, based on competitor pricing or differently
  • Need or otherwise for flexibility in pricing
  • Service standards and ‘Diner Experience’
  • Other elements in the marketing mix that could facilitate market penetration, and establish the brand
  • Supply Chain, Production and Tech related analysis

Location and Rental Analysis

  • Recommended potential store location types across UAE
  • Retail F&B rentals across location types in UAE

Opportunity Assessment

  • Critique existing concept proposal for the Project
  • Suggest unique selling points and key attractions for the Project
  • Propose concepts for the different units of the Project based on the demand analysis findings
  • Assess the key success and risk factors