87% of operators expect higher footfall while 30% of restaurants are still wary of marketing spend, according to a recent updated PRIME (POSist Restaurant Industry & Market Evolution) report released recently by POSist, a platform cloud-based catering technology in collaboration with Dubai. Restaurants Group (DRG), a non-profit organization under the direct patronage of the Dubai Chamber of Commerce.
While events such as Expo 2020, T20 World Cup and FIFA World Cup Qatar 2022 ™ are highly anticipated to improve footfall and tourism, restaurant chains are not anticipating marketing spending. important for promotional campaigns around events, as their main objective remains improvement. margins and regain lost business.
Ashish Tulsian, co-founder and CEO of POSist, added: “In this second edition of PRIME in the Middle East, we took a look at how the restaurant industry is preparing to grow alongside important events in the region, such as the ongoing Expo 2020 and upcoming sporting events like the 2022 Qatar Soccer World Cup and the booming tourism sector in the Kingdom. “
In a special webinar around the release of the key figures, Naim Maadad, founding board member, Dubai Restaurants Group and founder of Gates Hospitality, emphasized: let’s focus on the positive. Some of the areas of concern are still that people cannot get on planes even though travel opens up and that means the global shortage of good labor is just as valid for our region as anywhere else. Consumption habits have also changed during the pandemic and we have all had to adapt and change some of our habits to regain consumer confidence. But overall I agree with this conclusion and happy with the direction we are taking. “
Despite a downturn in activity for a brief interval, employment opportunities are also making a comeback. Most fast food and cloud kitchen operators say they have vacancies that they are struggling to fill. In addition, restaurateurs are taking other steps to prepare for the peak demand season.
Although restaurant revenues are coming back faster than expected, online delivery still represents a significant portion of their revenues. 65% of respondents expressed interest in setting up a cloud kitchen while nearly 34% of respondents said they set up ordering online through their website, social media or mobile app .
Feedback from the survey also shows that consumer behavior is changing. As consumers become more familiar with online delivery and ordering, they are more likely to choose a direct channel to order from the brand. The report highlights the growing role of social media channels in creating new avenues for ordering food with 93% of restaurant owners stating that they actively use social media like Instagram, Facebook and Twitter to run promotional campaigns. 32% of operators said they were actively running digital marketing campaigns for promotional purposes, followed by 26% who said they had invested in influencer marketing on platforms like Instagram and Facebook.
DRG’s Maadad added, “With 2021 behind us and vaccines deployed across the Middle East, we can begin to see the end of this pandemic. Our research and analysis of the restaurant industry unveils three areas of innovation that will set the tone for 2022: online ordering, menu optimization, and a hybrid business model that will change the way restaurants operate. “