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The restaurant industry in the UAE is bleeding. Many are doing 1/4 to 1/2 of their usual revenue, and survival is questionable.
These losses are compounded by aggregator commissions & steep rents. So what’s the solution? We spoke to over a dozen restaurants to ask.
A thread.
These losses are compounded by aggregator commissions & steep rents. So what’s the solution? We spoke to over a dozen restaurants to ask.
A thread.
After 4 of his 7 outlets were closed due to #Covid19, Punit Achria now takes only about 40 orders per day in one outlet, compared to the 120 on average he would usually do.
Across 7 outlets, that's roughly 120 of a usual 840 orders.
He's sent most of his staff on leave to cope
Across 7 outlets, that's roughly 120 of a usual 840 orders.
He's sent most of his staff on leave to cope
Hadi Al Hakim, owner of @tonyromas, which has outlets across the UAE, says dine-in customers made up 90% of their business.
Of the remaining 10% of revenue that came from deliveries, this has now dropped to about 4% of their total revenue.
Meaning they've lost 95% of business
Of the remaining 10% of revenue that came from deliveries, this has now dropped to about 4% of their total revenue.
Meaning they've lost 95% of business
Sharmili Jagdale's restaurant opened in Karama just a week before Dubai moved to a delivery-only model.
They are now receiving four to five deliveries per day, which puts their total weekly revenue between Dh2,100 and Dh2,800.
"It doesn't even cover our daily electricity cost"
They are now receiving four to five deliveries per day, which puts their total weekly revenue between Dh2,100 and Dh2,800.
"It doesn't even cover our daily electricity cost"
Victor Paul, manager of Four Buns Burger, usually makes more than Dh360,000 in revenue under normal circumstances.
Since the pandemic outbreak, he estimates he is making just Dh90,000.
Of the Dh40,000 he has made on deliveries, 27 per cent of that (Dh10,800) goes to Talabat
Since the pandemic outbreak, he estimates he is making just Dh90,000.
Of the Dh40,000 he has made on deliveries, 27 per cent of that (Dh10,800) goes to Talabat
We approached all aggregators to ask what the go is, and if there's room to slash commissions to help out momentarily.
@Deliveroo did not respond. @Zomato / @ZomatoUAE said they would, then ignored me, then called me to tell me what I can and cannot write.
@Deliveroo did not respond. @Zomato / @ZomatoUAE said they would, then ignored me, then called me to tell me what I can and cannot write.
. @Talabat says, however, that they too have a business model to fund.
"There are several reasons why we cannot do this, not even temporarily," Talabat chief executive Tomaso Rodriguez says.
"There are several reasons why we cannot do this, not even temporarily," Talabat chief executive Tomaso Rodriguez says.
"First, when times are uncertain, asking businesses to voluntarily decrease their revenues in support of other businesses does not make business sense, it simply shifts the problem to a different part of the supply chain – at a time when restaurants need platforms more than ever"
The debate comes as data from a survey of thousands of chief executives in 109 countries points to the hospitality and restaurant sector as the most vulnerable industry, with 41 per cent of respondents saying their firms were at risk of not surviving
So what's the solution? Good question. Something needs to be done.
Our restaurants are in dire straits - and if we want to come out of this still being able to eat at our local kebab shop, Lebanese, pizza joint etc we have to #SupportLocal
Read it here: https://www.thenational.ae/lifestyle/food/too-big-a-bite-dubai-restaurants-say-delivery-apps-must-reduce-their-charges-1.1009417
Our restaurants are in dire straits - and if we want to come out of this still being able to eat at our local kebab shop, Lebanese, pizza joint etc we have to #SupportLocal
Read it here: https://www.thenational.ae/lifestyle/food/too-big-a-bite-dubai-restaurants-say-delivery-apps-must-reduce-their-charges-1.1009417
