The decrease in operating capacity affected its revenues
Dubai Restaurants Group intends to discuss financing and rental values after Coronavirus
There are about 14 thousand restaurants in Dubai. Photography: Patrick Castillo
Mubarak bin Fahd: "Consumer confidence is a very important element to restore the demand for restaurants."
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The Dubai Restaurants Working Group confirmed that the restaurant sector is one of the businesses most affected by the emerging coronavirus (Covid-19), pointing out that there are about 14,000 restaurants in Dubai.
She explained that the sector was greatly affected even after the reopening, while adhering to the social distancing policy that reduced the operational capacity, indicating that the group would study post-Corona challenges related to financing by banking institutions, as well as reviewing the rental values of restaurants, With reduced operating capacity.
Restaurant sector
In detail, the head of the Restaurants Working Group in Dubai, which operates under the umbrella of the Dubai Chamber of Commerce and Industry, and the owner of the Tashas Group, Mubarak bin Fahd, confirmed that the restaurant sector is one of the most affected business activities with the emerging corona virus (Covid-19), calling for unification Efforts of workers in this sector, to identify the challenges facing it, and to take measures to ensure that restaurants help overcome the effects of the pandemic.
He added to "Emirates Today" that the establishment of the group unifies the voices of operating and investing companies in this sector, and serves their goals, interests and professional activities, especially during the current period, pointing out that the restaurant sector is one of the largest commercial sectors in Dubai in terms of the number of establishments, as the number of restaurants reaches Operating in Dubai to about 14 thousand restaurants, according to official statistics.
He stressed that cooperation during the coming period will focus on encouraging restaurant owners to join the group, in order to coordinate communication with the relevant government agencies, with regard to legislation and initiatives that serve their corporate activities and provide them with added value in the labor market.
Challenges and actions
Bin Fahd explained that the restaurant sector in Dubai faced challenges related to competition and the availability of supply, before the outbreak of the Corona pandemic, stressing that the precautionary measures that were taken to preserve the lives and health of individuals through total and partial closures were courageous decisions, and public health was put first.
He pointed out that the restaurant sector was greatly affected even after the reopening, while adhering to the social distancing policy, which reduced the operating capacity of restaurants, and thus reduced their revenues and affected their mode of operation.
He continued: "Consumer concern and caution in dealing with restaurants in particular, led to a tangible effect in the sector, and after activities were stopped completely and some of them stumbled."
Spending priorities
Bin Fahd indicated that the individuals staying at home was reflected in the behaviors of the desire to shop and go to restaurants, pointing out that buying food from restaurants and delivering home are not sufficient to cover the operational cost of the facility, nor are they suitable for all types of food.
He said that the Corona crisis affected other businesses, salaries, and financial incomes, thus re-prioritizing spending among individuals and families, as entertainment activities, including frequenting restaurants and hotels, were a major part of the process of restructuring individual spending at the community level.
Cash reserve
Bin Fahd stated that all sectors have been affected to varying degrees by the pandemic, but the effect was clear and tangible in the restaurant sector, pointing out that a large number of restaurants do not have financial capacity to deal with crises in the long term, as the cash reserves of some restaurants do not enable them to withstand Covering expenditures and suppliers' payments for a period of more than two months, as the work is related to a specific cycle related to the supply channels and operating cost accounts that include the value of rent, employee salaries, and others.
After "Corona"
Bin Fahd said that the group will study post-Corona challenges, which are related to financing as well, as banking institutions do not finance small and medium enterprises, including restaurants, and a study must be taken to review the rental values of restaurants, with the decrease in the operational capacity imposed by social distancing measures.
He reiterated that social distancing reduces the number of tables available for use in a single restaurant, and thus affects the volume of restaurant sales and revenues, which must be taken into account when estimating the rental value of restaurants, especially those that operate inside commercial centers.
Consumer confidence
Bin Fahd stressed the importance of increasing consumer confidence in the restaurant sector, and the measures taken to ensure health safety and protect people's lives, indicating that consumer confidence is a very important element to restore demand for restaurants.
He added that one of the most important steps, during the coming period, is to include restaurants under the umbrella of the group, to identify challenges, discuss and present them to the concerned authorities.
Restaurant business group
Last July, the Dubai Chamber of Commerce and Industry announced the establishment of a "Restaurant Business Group" in Dubai, to form an umbrella grouping the most prominent companies and institutions operating in the sector, which is an essential part of the food and beverage sector in the emirate.
The Dubai Chamber affirmed that the emirate is a leading destination for restaurants specializing in international kitchens, pointing out that restaurants are an essential part of the growing business environment in Dubai, where more than 200 nationalities reside, in addition to the influx of visitors from around the world, which requires the availability of restaurants that serve all Tastes and cultures.
vision
The head of the restaurants working group in Dubai, Mubarak bin Fahd, indicated that the group, which consisted of nine members, will focus its efforts during the coming period on improving the market and performance of restaurants in the emirate, coordinating joint efforts and setting priorities for the future period, and aligning efforts with government initiatives for the sector. In addition to working to reduce the negative effects of "Covid-19" in restaurants.
He said, "We will work to strengthen work to build a sustainable future for the restaurant sector in Dubai, and work to return this sector to the right path, and contribute to building a new future for it."
- The restaurant sector is one of the most affected businesses by the "Covid-19" virus.
Total and partial lockdown measures were bold decisions, and public health was put first.