hungry for more? - kpmg · pdf filehungry for more? kpmg 2016 uae food & beverage report...
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation and circumstances.
© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Publication name: Hungry for more?Publication date: September 2016
Profitable and sustainable growth
Competition for good locations
Staff attrition
High rents
What do operators say about food festivals?
What is on the radar...
Food festivals don't generate much
revenue - but will continue.
Food festivals are a great opportunity for smaller (and
newer) operators to offer new concepts
I don't think food festivals do anything for the
F&B sector.
New brands and concepts are introduced
during food festivals.
We see reasonable bookings from these apps.
We don't track volumes separately but we know they contribute.
Food apps do not contribute much to our business.
Yes, we are already listed on all the food apps in the market.
No - although we are listed.
No - we aren't listed.
Choice 1
Choice 2
Choice 3
Deals influence my choiceI only look for deals for cuisines I like
I rarely, or never, use deals
I only look for deals from the restaurants I know
I only look for deals on special occasions and am not too particular about the restaurant or cuisine
Yes No
Choice 1
Choice 2Choice 3
20-30 min41%
10-20 min28%
<10 min7%
Book
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42
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146
126
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Hungry for more?KPMG 2016 UAE Food & Beverage Report
Takeaway 1: The UAE's F&B market remains resilient and the outlook is robust in the longer term. F&B operators continue to invest with an eye on the future.
Consumer preferences are relatively consistent. Differentiating on quality and customer experience is crucial to stand out from an increasing number of available choices.
Takeaway 2:
F&B businesses understand the importance of engaging with their customers – and are getting better at it. Using data and social media effectively offers significant competitive advantages.
Takeaway 3:
Innovation is impacting the market as a whole but there seem to be very few individual disruptors that are having a marked effect - getting the basics right is still key.
Takeaway 4:
While there are numerous F&B opportunities across the UAE, there are also a number of challenges, which are multifaceted and substantial.Takeaway 5:
Number of outlets Revenue (AED million)
The UAE’s food & beverage market
2015
2020
2015
2020
16,234
19,053
52,399
81,960
1.2x
1.6x
Source: Euromonitor
9%
63%
28%
Spending more
No change
Spending less
How has your average spend changed compared to last year?
Operators have a positive view of the market in the longer term – although there are significant challenges in the shorter term:
In a market that offers overwhelming choice, quality – of ingredients, service and cuisine – is a differentiator which adds significant competitive advantage.
Rents are rising. I am losing
some of my best staff.
Finding a good location is getting increasingly difficult.
Food costs are rising but my customers are price-sensitive.
Sustaining topline is not easy.
Where are you looking to invest in the medium term?
Which are your preferred cuisines?
What makes you try a new restaurant?
Consumers use their smartphones to:
I always eat healthy food.
I eat healthily during the week, however, I indulge a bit at the weekend.
I have become more health-conscious.
I am not particular about. nutritional value; I prefer taste over health.
Do you eat healthily?
Yes, the trend has really picked up.
Yes, but it is still early days for healthy eating.
No.
Are people in the UAE eating more healthily?
How do deals affect your choice of restaurant?
Expand the outlet network for existing franchises and brands
64%
Expand into new markets and geographies
36%
Invest in new brands and franchises
27%
Note: Multiple choice question - therefore, the total does not add to 100%.
63
16
44
38
4724
20
17
235
105
80
147
161
84
33
32
2825
22
31
23
24
30
61
48
18
111
105
110
51
117
101
63
52
299
14
3097
55
54
Cen
tral
and
Latin
Am
eric
an
Chi
nese
Emira
ti an
d G
CC
Fren
ch
Indi
an
Italia
n (in
clud
es p
izza
)
Japa
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Leba
nese
and
Leva
ntin
e
Nor
th A
mer
ican
(incl
udes
bur
gers
)
Oth
er E
ast A
sian
Oth
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urop
ean
Oth
er M
iddl
e Ea
ster
n o
r Nor
th A
fric
an
Oth
er S
outh
Asi
an
Paki
stan
i
No.1
Café
Quick service/fast food
Casual dining
Fine dining
128 141 301 230
47 169 425 159
89 107 314 290
57126125 492
Never Only on a special occasion
1-3 times a month More than three times a month
How often do you visit?
18%
16%
7%
7%6% 2%
18%
25%
Ambience
Enough parking or valet service
Good quality service
Value for money
Cuisine
Food quality and taste
Location and travel time
Variety in the food
How do you choose a restaurant?
Service level
24%
48%42%
76% CuisineRestaurant
Have you tried a new cuisine or restaurant in the last six months?
Word of mouth from friends and relatives
Online ratings and reviews of restaurants
Reviews by food critics in magazines and newspapers
Deals and promotions
Known brands from home and abroad
Advertising
Level of service and staff is generally good
Most restaurants are understaffed and quality suffers
Restaurants have enough staff but they aren't very well trained
?
65% 29%6%
24%
26%
20%
20%
10%
Deals and promotions:
27%
27%
50%
Induce first time trials
Don't generate customer loyalty
Increase footfall
Note: Multiple choice question - therefore, the total does not add to 100%.
How are food apps affecting your business?
Do you see value in food apps?
Boo
k ta
bles
at
rest
aura
nts
Find
a re
stau
rant
s to
try
Look
for d
isco
unts
,pr
omot
ions
, or d
eals
Look
for d
irect
ions
to re
stau
rant
s
Ord
er m
eals
Rea
d a
rest
aura
nt
revi
ews
Writ
e re
stau
rant
re
view
s
42
39
19
238
146
126
112
125
149
124
142
209
178
75
76
55
182
127
71722
No.1
9%
9%
82%
18%
46%
36%
53%
37%
10%
I have not noticed any changes in healthy options over the last year.
Yes, there are more healthy items on the menu now than a year ago.
No, there are fewer healthy options now.
22% 41%
23%
14%
Are operators offering more healthy food options now?
37%
36%
27%
– Social media engagement– Personalized dining
experiences– Authenticity of cuisine– Organic food and
restaurants– Food festivals
– Self-ordering– Organic food and
restaurants– Street concepts– Themed restaurants– DIY food
LATEST FOOD INNOVATIONS
Expansions strategy Operational reviews
Customer insightVAT Impact
5%
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