Food delivery a game changer for Dubai's F&B

Food delivery a game changer for Dubai's F&B
Published: 20 March 2017 - 2:44 a.m.
By: Sarakshi Rai

Delivery is a game changer in the Dubai market - however it doesn't replace the full restaurant experience, said panelist Fay Economides at the Caterer Middle East Food and Business Conference at Grosvenor House on March 7, 2017.

However, in the UAE, food delivery is on the rise. In KPMG's annual food and beverage report, three out of four survey respondents said they order a take away or have food delivered at least once a week. The study also added that 82% of industry respondents said they are “already listed on all the food apps in the market” and found value in them.

In the UAE alone, food apps currently used by residents are Deliveroo, UberEats, Zomato, Talabat, to name a few.

Mckinsey reported in 2016 that "worldwide, the market for food delivery stands at US $102 billion, or 1% of the total food market and 4%of food sold through restaurants and fast-food chains".

The delivery market has already matured in most countries, with an overall annual growth rate estimated at just 3.5% for the next five years. And this market is going to keep growing. 

"35% of business comes from food portals and delivery services and apps take the stress of delivery off your hands, allowing you to concentrate on core business, said Namir Hourani from MARJ Group at the panel discussion titled 'Game changers in the F&B industry'.

"If you're at your desk in the office and need to go pick up food, that's a sizeable time of your day. Most people want convenience so that's where the food delivery guys win. If Deliveroo is going to come and pick it up and drop it off then let them I'm happy for them to do that. People want food delivered and they want it now, 45 minutes' delivery time doesn't even cut it close now. They want it quicker and quicker," Hourani added.

Jumeirah Group's Emma Banks said that  20% of Noodle House's home delivery business comes from Deliveroo.

"Noodle House has a fleet of 30 bicycles and we're self sufficient with bikes on the road but some of our customers were going to UberEats or Deliveroo; the market is changing and the trends are changing."

"Given the growth of food apps and their impact on operators' volumes and topline, they are seen as an important contributor to success," said KPMG's Anurag Bajpai at the conference.



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