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Arabian Business
02-05-2025
- Business
- Arabian Business
UAE restaurants turn to AI, ghost kitchens to counter soaring rents and evolving consumer tastes
The United Arab Emirates' hospitality sector is increasingly deploying technology to boost the efficiency of restaurant operations as rising rental costs in cities like Dubai push business owners to opt for more economically viable options like food halls and ghost kitchens, experts said. This comes as the wider MENA region witnesses a major transition in the industry with AI-enhanced kitchens, data analytics and more. 'Restaurants in the UAE – as also throughout the Middle East – currently are in the midst of a new-age tech-enabled transformation, increasingly utilising AI-powered tools, automated ordering systems, and contactless payment methods to optimise their operations and improve customer satisfaction,' Alexander Ponomarev, CEO of Syrve MENA, a leading provider of restaurant technology in the region, told Arabian Business. 'Digital menus, AI-enhanced kitchens, and advanced data analytics are revolutionising restaurant operations and guest interactions,' he added. Ponomarev said advanced data analytics – one of Syrve MENA's core offerings – is something many of the restaurants in the region are already actively using to optimise performance and gain deeper insights into customer behaviour. Senior industry executives, while confirming the tech-enabled changes in the sector, said the region's upscale dining scene, meanwhile, is setting new benchmarks for exclusivity, personalisation, and sustainability, as travellers seek curated, culturally rich culinary experiences. UAE's themed restaurant wave Restaurateurs are also wooing the young and young-at-heart with social media-oriented immersive dining experiences, carrying hefty price tags of AED1,800-per-head ($490) or thereabout, featuring interactive dining setups, uniquely themed environments and multisensory activities to offer shareable, Instagram-worthy moments. The sector is also seeing a growing trend towards social dining experiences, peppered with games or trivia nights amidst the rising expectations of diners to turn eating into an event. Industry players said the hospitality sector in the UAE and the MENA region is increasingly seeing a rising demand for immersive dining experiences that offer unforgettable journeys that engage all five senses. In response, innovative restaurateurs are coming up with new concepts, featuring interactive dining setups, uniquely themed environments, and multisensory activities that particularly appeal to younger generations looking for shareable moments on social media, they said. 'For restaurants, crafting these Instagram-worthy experiences not only sets them apart from competitors, but also attracts crowds eager for memorable moments beyond traditional dining,' a sector expert said. Ponomarev said Syrve's MENA client, Krasota, offers an AED1,800-per-head immersive dining experience in Dubai, ensuring personalised menu adjustments based on diner preferences captured via digital surveys. 'Similarly, 'Our Hidden Worlds' utilises projection mapping – featuring 360-degree sound and physical art to create magical worlds – to transform dining spaces into dynamic environments, such as pairing oceanic themes with seafood dishes,' he said. The Syrve MENA chief executive said many diners now expect engaging, social, and often gamified experiences that turn eating into an event. The trend is also manifested in a survey by 'the bottom line', in which approximately 31 per cent of customers expressed interest in participating in restaurant games or trivia nights, underscoring the desire for engaging social experiences that extend beyond just food. Rising real estate, rental costs force major shift in business models Sector experts said there is also a major shift in business models currently underway in the region's hospitality sector, which is seeing many industry players changing their operational models by switching over to ghost kitchens and food halls in the wake of changing economic situations and rising real estate costs. Cloud kitchens offer a strategic advantage in the high-cost real estate markets of the region, they said. Ponomarev said ghost kitchens offer an economically viable alternative for food entrepreneurs, especially in locations like Dubai, where retail rents rank among the world's most expensive, according to Knight Frank research. Food halls, on the other hand, offer cluster-oriented models in designated locations for eating out, inviting large-scale footfalls, while cutting operational costs for units. He also cited the example of The Hub by Social in Masdar City, representing the evolution of food halls in the region. The over 32,200 square foot destination offers a diverse range of cuisines, including Asian, Indian, Italian, American, and Mexican, creating a vibrant community space that serves as more than just a dining venue. Industry executives said the new models are expected to enable restaurant owners and operators to navigate the shifting economic environment and adapt to the rapidly changing restaurant landscape. Embracing the latest trends is not just about keeping up—it's about leading the way in an industry where innovation is the norm, they said. The rising trend of immersive dining experiences and shifting operational models are underway at a time when the MENA food service market is poised for impressive expansion, with projections to reach $190 billion by 2032 from the expected $100 billion this year. The surge in growth is fuelled by the thriving tourism sector, especially in the UAE, Qatar, Egypt, Iran, and Saudi Arabia, where both private and public entities are actively pursuing strategies to broaden the tourist demographic beyond just religious and corporate visitors.
Hi Dubai
07-04-2025
- Business
- Hi Dubai
Dubai restaurants experienced a 15% decline in dine-in orders during Ramadan, reports Syrve MENA
Ramadan is reshaping the UAE foodservice market, which is valued at $16.58 billion in 2024 and is projected to reach $50.21 billion by 2033, growing at a CAGR of 12.20%. Recent data from Syrve MENA, a leading restaurant software provider in the Middle East, reveals notable shifts in consumer behaviour during this holy month. Syrve MENA reported a 15% decrease in dine-in restaurant orders in Dubai during Ramadan compared to the rest of the year. This pattern suggests that residents often prefer evenings with family instead of dining out. While the data doesn't explicitly confirm that people prepare Iftar meals at home, the decrease in restaurant visits indicates that evening meals typically occur at home or with guests. Despite declining restaurant orders, the food delivery sector has demonstrated resilience, as evidenced by the differing peak hours across various cuisines and locations. According to Syrve MENA's internal data, venues in mall locations show a 13.6% increase in delivery orders during Ramadan compared to regular periods. For example, food halls received approximately 26.7% of their orders between 19:00 and 21:00 during Ramadan. Middle Eastern restaurants, which locals prefer for Iftar, showed a significant concentration of orders during late-night hours, with 51.3% of their total orders occurring between 23:00 and 03:00 during Ramadan. This pattern aligns with broader regional trends. Restaurants in Saudi Arabia also experience peak demand before Iftar and late at night. Food delivery orders in the MENA region typically surge between 8:00 PM and 11:00 PM, reflecting the cultural importance of breaking fast together. Traditional dishes dominate Ramadan orders, with Samosas, Mahshi, Knafeh, Opor Ayam, and Rendang being popular Iftar choices. Restaurants also experienced an average decline of approximately 11% in dine-in orders across different cuisine types compared to regular weeks. This trend varies by restaurant category: Middle Eastern cuisine (20.6%), Italian cuisine (10.8%), Indian (7.6%), and Central Asian cuisine (5.1%). While some establishments maintain stable delivery numbers, overall patterns shift during fasting hours. At the same time, average dine-in order values show a slight overall increase of approximately 5.3% during Ramadan. The average order value across Syrve MENA clients' restaurants for delivery during Ramadan is 140.34 AED, while for dine-in, it is 158.00 AED. While most of our clients experienced decreased dine-in orders, 13.6% of establishments saw a rise in delivery despite slightly lower order values, said Alexander Ponomarev, CEO at Syrve MENA. These trends reflect the broader cultural impact of Ramadan on dining habits in the MENA region. With 54% of consumers in Saudi Arabia and the UAE planning to share more meals with family and friends and 41% of UAE residents expecting to increase spending, the food service industry continues adapting to these seasonal changes. The projected 52% rise in online grocery sales results from the growing preference for convenient dining solutions during the holy month, as consumers opt for home-cooked meals and traditional dishes during Ramadan. News Source: Syrve
Arabian Business
07-04-2025
- Business
- Arabian Business
Dubai restaurants see 15% dip in dine-in orders during Ramadan as delivery services thrive: Report
Dubai's restaurant sector experienced a 15 per cent decrease in dine-in orders during Ramadan compared to non-Ramadan periods, according to data released by Syrve MENA. The figures suggest that residents prefer spending evenings with family rather than dining out during the holy month. Ramadan boosts deliveries While restaurants reported fewer sit-down customers, delivery services demonstrated significant resilience. Mall-based venues recorded a 13.6 per cent increase in delivery orders during Ramadan compared to regular periods. 'The average order value across Syrve MENA clients' restaurants for delivery during Ramadan is AED140.34, while for dine-in, it is AED158.00. While most of our clients experienced decreased dine-in orders, 13.6 per cent of establishments saw a rise in delivery despite slightly lower order values,' Alexander Ponomarev, CEO at Syrve MENA said. The data highlights distinct ordering patterns based on cuisine type and time of day. Food halls received approximately 26.7 per cent of their orders between 19:00 and 21:00 during the holy month. Middle Eastern restaurants, which locals prefer for Iftar, saw 51.3 per cent of their total orders occurring between 23:00 and 03:00. This trend mirrors patterns observed in Saudi Arabia, where restaurants also report peak demand before Iftar and late at night. Across the MENA region, food delivery orders typically surge between 8:00 PM and 11:00 PM, reflecting the cultural importance of breaking fast together. The decline in dine-in orders varied by cuisine type: Middle Eastern restaurants saw the steepest drop at 20.6 per cent, followed by Italian (10.8 per cent), Indian (7.6 per cent), and Central Asian (5.1 per cent). Despite this downturn, average dine-in order values increased by approximately 5.3 per cent during Ramadan. Traditional dishes dominated Ramadan orders, with Samosas, Mahshi, Knafeh, Opor Ayam, and Rendang being popular Iftar choices. The shift in dining habits reflects broader cultural trends during Ramadan. Statistics show that 54 per cent of consumers in Saudi Arabia and the UAE plan to share more meals with family and friends during the period, while 41 per cent of UAE residents expect to increase their spending.
