Market Trends of united arab emirates full service restaurants Industry
Middle Eastern and Asian cuisines dominate UAE full service restaurants, driven by large ex-pat populations
- The number of full service restaurants in the UAE was 3,158 outlets in 2022. The figure is expected to grow at a moderate pace, registering 6.93% during the study period. The growth is attributed to the increasing dining out frequency among local residents and tourists. Middle Eastern cuisine accounted for a major share (43.02%) of the market in 2022. This is attributed to the increased expatriate population from countries such as Lebanon, Syria, Iran, and Egypt, where the cuisine is considered a staple food, and local traditional cuisines such as hummus, falafel, tabbouleh, and kebabs, are observed to be popular not only among the natives but also the international tourists visiting the country.
- Middle Eastern cuisine is followed by Asian cuisine, with a market share of 29.58%, by value, in 2022, majorly driven by the large group of Asian expats residing in the country for employment purposes. In 2022, the total expat population in the country accounted for 8.92 million, of which 60% were of Asian origin. Among Asians, as of 2022, Indians formed the largest expatriate community in the United Arab Emirates, at 36.1%, followed by Bangladeshis at 9.1%, Pakistanis at 8.8%, Filipinos at 5.9%, and Sri Lankans at 3.08%. In the United Arab Emirates, 342 restaurants were serving Japanese food in 2022, a rise of around 163.4% from the 142 restaurants that did so in 2013. Latin American cuisine is growing faster with the rising penetration of Mexican restaurants in urban locations and is expected to register the highest CAGR of 10.79% during the study period. Asado, Gaucho, and La Parrilla are upscale Argentinian steakhouses that have been in the United Arab Emirates for a while. In addition, the Mexican restaurant chains added burritos and barbacoa to their menus and launched 17 more locations across the country.
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The UAE full service restaurants market grows in popularity of local and international cuisines, led by the demand for popular dishes
- The average order value for FSRs was priced at USD 36.48 in 2022. The demand for full service in the United Arab Emirates is a growing premiumization trend, and there is an increasing demand for various international cuisines by tourists. Dubai was one of the world's most popular tourist destinations in 2022, with the city welcoming 7.12 million international visitors in the first half of the year; the average hotel occupancy reached 74% in H1 2022, one of the highest in the world. It has also evolved as a popular international food destination, showing that over 55% of tourists ranked Dubai as the No. 1 global gastronomy hub. Regarding full service restaurants, Dubai is home to 80% of the 340 fine-dining restaurants operating in the United Arab Emirates. This is largely due to the demand for full service options from international visitors.
- The demand for full service restaurants is expected to increase due to changes in consumer behavior and demand for local cuisines. Consumers, at present, are looking for a portion of innovative food and technology. In 2022, popular dishes in the country included Al Harees, Fattoush, Shawarma, Chicken Curry, and Balaleet, priced at USD 5.75, USD 7.6, USD 2.72, USD 16, and USD 8.1 per 300 g, respectively. The demand for innovation and customization in food menus is expected to fuel the growth of the full service market. As Latin American cuisine has become so popular, restaurants offering Mexican cuisine have increased their variety of dishes. Due to the increasing demand, several Mexican restaurants are expanding their menus to include a variety of specialty tacos, quesadillas, burritos, and nachos. Popular Mexican dishes include Falafel and Hummus, priced at USD 4.9 and 6.8, respectively, per 300 g in the country.
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