Dubai’s Food and Beverage Sector is warming up nicely for the mega event of the decade - World Expo 2020. For restaurants, hotels, and cafe owners and of course, the food delivery portals, the party has already started. And it’s going to be a long one.
Food and Beverage Sector in Dubai
Vibrant dining hospitality, restaurants popping up in almost every corner and happy and content faces savouring the tasty food, Dubai’s food and beverage sector enjoy a slice of success with every passing year. Dubai’s reputation as a foodie’s paradise is going from strength to strength with businesses opening in the city at the rate of almost four a day. The culture has changed. People are visiting new cafés and restaurants to explore a variety of food. This has consequently encouraged investors to open new restaurants and new branches in Dubai. With an eye on trends abroad, Dubai has sought to diversify the range and scene of restaurants on offer. The popularity of food lorries serving unusual cuisines in places like London and Los Angeles spurred pop-up events in the Al Quoz’s Al Serkal Avenue art zone as well as in parks and beaches.
With Expo 2020 around the corner, the UAE has given a major boost F&B sector with different incentives. Expo 2020 Dubai estimates that 25 million visitors will be attending the event which is set to start from October 20, 2020 to April 10, 2021. It will offer businesses in the food and beverage sector an opportunity to exploit the huge business potential from the first World Expo in the Middle East, Africa and South Asia (MEASA) region. The Dubai team has also launched an e-sourcing portal that allows companies to access and compete for the acquisition of many business opportunities.
The value of potential food and beverage sales during Expo is estimated at over AED 2 billion from over 200 food outlets spread across the venue. It is estimated that, on average, 85,000 meals will be served every hour!
Following businesses in F&B sector are going to be highly affected by this mega event.
- Restaurants, hotels, cafeterias, and cafes
- Foodservice operation institutions in schools and hospitals
- Supermarket, grocery, and departmental stores
- Food factories and warehouses
- Food catering services, which supplies to the cruise ship, desert camps, events and canteens
- Manufacturers of food packing material and supplies
How will Expo 2020 Dubai Benefit F&B Sector?
Dubai is a home to a variety of nationalities and food tastes which is major leverage in the growth of the F&B sector. There is no doubt that Expo 2020 will spur growth in the UAE’s economy by creating endless opportunities for investors to invest in the region and contribute to a successful future ahead.
The main concentration, however, is on the food and beverage sector as it is estimated that five million meals will be needed to keep the Expo 2020 workforce fed during the six months of the Expo. At peak, up to 85,000 meals will be served per hour across 30,000 square meters of front-of-house space for F&B. From the above figures, it is safe to say that the food and beverage market is going to be huge for the next 2-3 years.
After Expo 2020, the site will be developed into the so-called District 2020, because of its creativity and technology a mixed-use development area in the south of Dubai that will include residential, commercial, retail, restaurant, and hotel properties. This mega event is all set to increase the overall GDP of the economy. When it comes to the restaurant business, it is predicted to touch a new high.
Insights of F&B Sector in Dubai Expo 2020
- The Dubai Expo 2020 will feature more than 200 F&B outlets and 30,000 sq.m of front-of-house space
- Sale of AED 2 million is expected onsite during the event, with up to 85,000 meals served per hour at its peak
- With a combination of franchises, new experiences and home-grown brands, the Dubai Expo 2020 aims to allocate 20% of its F&B outlets to SME’s
- Approximately 25% of F&B outlets at Expo 2020 will offer sit-down dining experiences (both premium casual and premium), while the remainder will provide faster services
- Up to 20% of space within the national pavilions will be allocated for commercial (retail and F&B) purposes
- Per sqm trading volumes for F&B outlets at Expo 2020 Dubai are projected to be substantially higher than other locations in Dubai, due to increased footfall and dwell times
- Between 10% and 15% of F&B outlets will remain after the Expo 2020 Dubai as part of District 2020, a mixed-use residential and commercial community at the site
How can Commitbiz help you?
Expo 2020 in Dubai will become a new stage in the development of international relations. New doors to the markets of many countries will open. For all the entrepreneurs and the investors who are looking for a way to start their business, Expo 2020 will be your way of getting a great start. International recognition, profitable business, huge demand and sales are just the primary benefits of registering your business in Expo 2020 Dubai. So what are you waiting for? Book your table and claim the slice of opportunity.
We at Commitbiz can help you with building your business for Expo 2020 and beyond. Right from business registration to office space, we’ve got you covered. Feel free to contact us to know more about business setup in the UAE.