The arrival of COVID-19 disrupted the global restaurant industry, and the GCC was no exception. The core reason being the crippling impact of pandemic on the travel and tourism sector. However, with the lifting of the lockdown, the economy is poised to grow. With the ongoing ICC T20 World Cup and Expo 2020 going on in the UAE and other global events like the Abu Dhabi Grand Prix, and the FIFA World Cup Qatar 2022™ in the pipeline, restaurant operators are trying to find scope to revive their businesses.
The travel and tourism industry is a major contributor to the GCC economies. Despite being hit by COVID-19, the upcoming global events have raised the expectations of the Middle-East restaurant operators. The Expo 2020 alone is expected to attract 25 million foreign visitors to the region. The rejuvenation of the tourism sector will directly impact the restaurant industry positively thereby leading to overall economic growth.
Reasons Why Upcoming Global Events Are A Great Opportunity For Middle-East Restaurant Operators
There are plenty of reasons why restaurant operators in the Middle-East are looking forward to these events. Here are some of the noteworthy factors also highlighted in the Middle-East PRIME report.
1. Growth Opportunity For SME F&B Outlets
Among all other global events, Expo 2020 is definitely a golden opportunity for GCC restaurant operators. From local restaurateurs to bigger brands, everyone will have a chance to manifest themselves in the event and network and collaborate with global partners through this platform. According to the PRIME report, the Expo aims to allocate one-fifth of the F&B outlets to SMEs. Therefore, the event is likely to accelerate the growth of many SME F&B outlets in the region.
2. Expected Increase In Onsite, Offsite, And Takeaway Sales
At Expo 2020, an increase in direct and indirect sales for the overall Middle-East restaurant industry is almost the certain outcome as the hospitality industry has to play a major role in the event. The other global sporting events will also invite a large chunk of population to the region, thereby increasing the hopes of restaurant operators from the tourism sector.
As per the PRIME report, over 50 cuisines from the UAE and other countries are to be served at the Expo, serving around 85000 meals every hour. With such a massive number of sales, the onsite sales during the event are expected to reach AED 2 million. The offsite and takeaway sales will further contribute to the sales volumes.
3. Expansion And Growth Opportunities For Brands
Being held for the first time since the pandemic, the events will likely draw a variety of global brands to the Middle-East. With the participation of over 190 countries in the Expo, the event could be a fertile ground for many brands to expand to newer markets. It is highly likely that short-term optimism could bring business stability in the future. The connections made through these events might even help smaller brands get access to venture capital and consulting.
4. Promotional Campaigns Of Restaurants Around Expo
With the long term in mind, many restaurant operators will be looking to make the best out of the Expo by participating in events and conferences. In fact, around one-third of the respondents confirmed they were planning onsite campaigns during the event. If leveraged judiciously, restaurant campaigning around Expo can be very beneficial to the new restaurateurs.
With so many expectations from the global events, the restaurant operators are quite optimistic about the favourable impact they will have on their business. Besides the hospitality connections, numerous other collaborations are anticipated to take place due to the massive opportunity provided by the global events down the two years.
Download our PRIME report (Middle East edition) to know more about the GCC F&B industry.
