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Comparison of the Longevity of Food and Beverage Outlets- Comparison between Dubai and Newyork

Alhassan Alfalasi and Bincy Baburaj Kaluvilla*

1The Emirates Academy of Hospitality Management, Dubai .

Corresponding author Email: bincy.baburaj@eahm.ae


DOI: http://dx.doi.org/10.12944/JBSFM.05.02.07

The beverage and food sectors in both Dubai and New York exhibit a wide range of offerings and play a significant role in bolstering their respective economic landscapes. This study examines the durability of food and beverage establishments in Dubai and New York. Utilising a design based on qualitative data has been selected as the chosen methodology for the investigation. Furthermore, a decision was made to carry out semi-structured interviews. A total of ten interviews were conducted, with five conducted with restaurant managers in New York and the remaining five led by cafe managers in Dubai. Thematic analysis was chosen for analysing the gathered data in this research study. Research has demonstrated that marketing and branding are crucial in determining food and beverage enterprises' sustainability and financial prosperity. Furthermore, it has been revealed that a strategy utilised by Dubai food and beverage businesses is offering extraordinary dining experiences. Food and beverage enterprises in New York City often stress and emphasise the importance of quality. Meals and beverage establishments in New York and Dubai prioritise offering exceptional quality meals and beverages to attract clients and justify higher pricing. Moreover, employing technology and thoroughly analysing its current path to attain successful businesses is crucial. Theoretical aspects can provide businesses with a comprehensive understanding of a subject, leading to potential benefits such as producing productive outputs and maintaining a competitive position in the market. The present analysis focuses on the food and beverage industry in Dubai and New York, examining the various aspects of these industries, including food and beverage outlets. Additionally, the study explores the longevity of these industries and provides a comparative analysis of the food and beverage industry in Dubai and New York.


Comparison of food and beverage industry of Dubai and New York; Food and Beverage industry of Dubai; Food and beverage industry of New York; Food and beverage outlets; Longevity

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Alfalasi A, Kaluvilla B. B. "Comparison of the Longevity of Food and Beverage Outlets- Comparison between Dubai and Newyork". Journal of Business Strategy Finance and Management, 5(2). DOI:http://dx.doi.org/10.12944/JBSFM.05.02.07

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Alfalasi A, Kaluvilla B. B. "Comparison of the Longevity of Food and Beverage Outlets- Comparison between Dubai and Newyork". Journal of Business Strategy Finance and Management, 5(2). Available here:https://bit.ly/41n57Pi


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Article Publishing History

Received: 21-09-2023
Accepted: 06-12-2023
Reviewed by: Orcid Orcid Sarthak Sengupta
Second Review by: Orcid Orcid Marian Cristescu
Final Approval by: Dr. Tahir Sufi

Introduction

The food and beverage sectors in Dubai and New York exhibit a wide range of offerings and play a significant role in driving economic growth within these respective regions. Furthermore, regardless of the dining establishment's classification, dining out encompasses a prevalent aspect of urban living in cities such as Dubai and New York (Schmit et al.,2012) (Sharaf , 2020). During the global economic downturn from 2008 to 2009, the restaurant industries in Dubai and New York experienced notable growth and expansion. Moreover, in contrast to previous eras, contemporary individuals exhibit a significantly higher frequency of dining out. The phenomenon of increased frequency of dining out and decreased home meal preparation has been widely seen in both cultures for a considerable time. Concurrently, an increasing number of food courts are being integrated into shopping malls due to shifts in the business models of the restaurant industry. Through the strategic integration of food and retail establishments, these restaurants have the potential to enhance sales performance, optimise cost management, and ultimately augment overall profitability. According to Kraak, (Kraak et al., 2019) the rapid expansion of the international food and beverage industry can be attributed to the increasing trend of people dining out.

Creating and maintaining positive customer relationships is imperative in light of the increasing awareness and knowledge of consumer rights among a more concerned client base. According to Monteiro, (Monteiro et al., 2021) to align with customers' expectations, restaurants should reallocate resources from labour and essential food expenditures to enhance their ambience and overall environment. The study conducted by Susanty, (Susanty et al., 2022) examined the treatment of customers in ethnic dining establishments and the impact of service innovation. This study also examined the potential use of customers' experiences to comprehend the relationship between service innovation and consumer behaviour. The authors have provided evidence supporting the notion that service innovation substantially impacts consumer experience and subsequent behavioural intentions. This implies that customer satisfaction can be enhanced by delivering services, resource landscapes, and service offers. According to Maspul, (Maspul et al., 2021) ethnic restaurants that exhibit outstanding service environments, efficient service delivery methods, and diverse product offerings tend to receive more positive feedback regarding guests' behavioural intentions.

The bilateral ties between the United States of America (USA) and the United Arab Emirates (UAE) have experienced significant growth and development during the past few decades. According to a report by the Wall Street Journal, Jes Gordon, a resident of Hudson Yards, has identified certain similarities between Bar Stanley and cocktail bars in Dubai. During the discourse on media engagement, the individual additionally expressed that the observed phenomenon resembles a little version of Dubai. (Kadet et al., 2019) According to a report by Emirates 24/7, the late Sheikh Rashid and Mohammed were reportedly captivated by the towering structures and cultural aspects of New York City during their visit. This experience seemingly influenced their decision to replicate this architectural style in Dubai. (Emirates 24/7, 2016). Hence, it may be argued that a mutual trade of trends exists and that both nations have a heightened level of acceptability of these trends.

The food and beverage sector is crucial in transforming raw materials into edible forms, establishing a vital connection between agriculture and consumption. Transforming raw materials into value-added products enables governments to effectively store and retain items produced during specific seasons until required. Dubai has emerged as a leading force in the regional food and beverage (F&B) industry due to its substantial influx of tourists and the establishment of globally recognised F&B enterprises. According to Sharaf Eldean (Sharaf Eldean et al., 2020), Abu Dhabi has been included in the top ten locations exhibiting the most rapid growth rates globally in 2019. Meanwhile, Dubai has managed to retain its position as the fourth-ranked destination. Due to the increasing prominence of the United Arab Emirates (UAE) as a tourism hotspot, global food and beverage (F&B) chains and regional operators will persistently seek opportunities to expand and enhance their market share across the Emirates. According to Susanty (Susanty et al., 2022) there was a persistent demand in the food and beverage (F&B) industry during 2019. A significant proportion of customers, precisely 78% of those surveyed, reported maintaining or increasing their frequency of dining out compared to the previous year. Moreover, compared to 2018, a significant majority of respondents, precisely 83%, reported maintaining or increasing their expenditure on dining out, thus perpetuating an ongoing pattern. During the pandemic, there was a notable shift in consumer behaviour, with a decline in the number of customers dining out and an increase in the number of customers opting for food delivery services. This movement was observed in the short term and had a substantial impact. The majority of participants in the survey expressed their intention to maintain or decrease their frequency of dining outside of their homes until the last quarter of the year, citing concerns related to health and hygiene. However, more than half of the respondents indicated their want to return to their pre-pandemic dining patterns by early 2021.

In contrast, it is worth noting that food manufacturing enterprises operating within the confines of New York State were responsible for generating a substantial revenue amounting to over $19 billion while concurrently providing employment opportunities to a workforce of more than 54,000 individuals (Economic Census 2007). Although the food and beverage industry in New York State has had growth rates that fall under the national average, it has exhibited commendable performance relative to other industries involved in manufacturing. According to the Economic Census (Economic Census 2007), there was a modest growth of less than 11% in revenues for every manufacturing sector in New York between 1997 and 2007. However, during the same period, there was a significant decline of 32.1% in total employment. The results are significantly more remarkable when considering the incorporation of increased value-added contributions. The user's text is too short to be rewritten academically. Between 2000 and 2009, the state witnessed a substantial increase of over 50% in value-added contributions, specifically in the food manufacturing industry. In contrast, the manufacturing sector experienced a comparatively modest growth of only 7%. The fact that manufacturing milk and other dairy products, vegetables, and fruits constitute the most significant element of the state's economy, employing 7,603 and 6,682 individuals, respectively, is to be expected. This can be attributed to the comparative magnitude of the state's dairy industry and its fruit and vegetable production sectors. The determination of a manufacturing plant to establish its presence in a particular state is influenced by factors beyond the supply-side considerations. The state's substantial urban populations support various enterprises involved in food production, including several bakeries, tortilla producers (including those operating within retail bakeries), and other related sectors. The user's text is too short to be rewritten academically. In terms of operational procedures, these enterprises place a greater emphasis on proximity to clients rather than access to substantial volumes of bulky commodities. Many urban areas possess the requisite transportation infrastructure to accommodate and manage long-distance shipments of raw commodities from local and international origins. According to the Economic Census of 2007, the state boasts a population of over 5,000 individuals, with a balanced representation of alcoholic and alcohol-free beverage manufacturers, including breweries, wineries, and distilleries. This indicates that beverage manufacturing constitutes a substantial sector within the state's economy.

The present study focuses on doing a comparative analysis of the culinary and beverage industries in Dubai and New York. Singh (Singh et al., 2023) asserts that the drinks and food sector has a significant role in the global gross domestic product (GDP), as it is a crucial driver of economic growth for nations. The present study aims to conduct a comparative analysis of the longevity of the drinks and food markets in Dubai and New York. Within this framework, Corder (Corder J. 2022) observed that critics have regarded Dubai's restaurant culture of service as one of the most exceptional globally. Based on current research findings, it has been observed that Dubai surpasses Singapore, New York, and London regarding restaurant service quality. The inaugural Dubai Gastronomy Industry Report, (Corder J. 2022)  conducted by Dubai's Economy and Tourism Department, examines the comparative analysis of Dubai's food and beverage (F&B) sector with other prominent global cities. In light of the current emphasis on establishing manufacturing jobs at the state and federal levels, it is an opportune time to examine the various factors that influence the performance and expansion of food manufacturing enterprises. This analysis aims to offer recommendations to businesses and policymakers that can facilitate the prosperity of this sector (Sovacool B. K. et al., 2021). The primary objective of the present study is to conduct a comparative analysis between Dubai and New York for the durability of food and beverage establishments. Furthermore, the study also examines the potential implications for the sustainability of food and beverage establishments in Dubai and New York.

Problem Statement

The concern within the drinks and food sector pertains to certain companies facing financial setbacks due to inadequate planning and a failure to adapt to evolving client preferences and market dynamics. The identified business concern pertained to a deficiency in strategic planning across many executives within the food and beverage sector, specifically concerning implementing sustainable business practices to enhance operational efficiency. In addition, Monteiro (Monteiro et al., 2021) observed that the food and drinks sector necessitates ongoing enhancements to meet client demands effectively and maintain customer loyalty. A pressing requirement is to develop proficient strategic planning to sustain a robust market position. Consequently, comparative analysis of prominent food and beverage establishments from various backgrounds can yield benefits (Milan C. et al., 2022). Hence, it is imperative for food and drink businesses in central worldwide locations like Dubai and New York to comprehend the fluid strategic methodologies that can enhance their offerings, enabling them to sustain competitiveness amidst the prevailing market fluctuations and altering customer preferences. Therefore, conducting a comparative analysis of the durability of food and beverage establishments in the two nations would be beneficial for devising methods to adapt to prevailing shifts in the consumer market. 

Research questions

What are the most effective strategies used by F&B outlets in Dubai and New York to improve their overall performance and longevity?

Literature Review

Market Dynamics and Strategic Adaptations in the F&B Industry: A Dubai and New York Perspective

Dubai's food and drink sector is characterised by intense competition due to the discerning nature of its consumer base. According to Nizam (Nizam et al., 2022), firms face difficulties making optimal decisions that align with their interests. Due to intense market rivalry, Dubai is witnessing the removal of failing outlets, irrespective of their necessity. To maintain a competitive edge in the market, businesses must prioritise being abreast of current trends since the level of competition is notably intense. The retail sector in the United Arab Emirates (UAE) has experienced notable and crucial progress in conducting operations in various regions within Dubai (Nizam et al., 2022).  According to Nizam (Nizam et al., 2022), opening a restaurant or bar in Dubai can be profitable. However, business personnel must conduct comprehensive research and consider factors such as market relevance and organisational agility to enhance the business's performance (Slapø H. Et al., 2021 ).

The drinks and food sector in the United Arab Emirates (UAE) has experienced a growth rate of 22% since the year 2017. The projected growth rate for the specified metric will reach 30% by 2025. According to Abu Dhabi's Vision 2030, inventors are urged to try out diversification initiatives, such as investing their savings in growing their company ventures. According to Malhotra (Malhotra et al., 2022), the trajectory of the United Arab Emirates (UAE) is intricately linked to the hospitality industry.The occurrence of congestion and extended delays at terminals worldwide contributes to the delays in providing crucial materials. As a result, numerous food and beverage establishments have been compelled to develop solutions, such as formulating alternative recipes, to sustain production without essential ingredients (Slapø H. Et al., 2021). Organisations increasingly embrace technology innovations such as artificial intelligence (AI) and integrate circular manufacturing systems (Nizam et al., 2022) to streamline operations and enhance control over supplier networks.  One significant challenge confronting Dubai's food and beverage establishments now is personnel scarcity. Due to a substantial insufficiency in labour supply resulting from low levels of underemployment and a continuing lack of foreign workers, some enterprises have been compelled to reduce their reliance on extra (Thapliyal et al., 2021).  

Figure 1: Revenue of Food and Beverages Stores of Dubai Source:  (Statista., 2023).                                                                                                  
Click here to view Figure

Current performance of food and beverage outlets in New York

Al-Marzouqi (Al-Marzouqi et al., 2022) have observed that the food and beverage industry in New York has seen some notable changes in recent years, which seem to be exacerbating existing challenges. The influence of political conflicts and social instability on global markets persists alongside the challenges posed by the worldwide pandemic, including disruptions to the supply chain and a shortage of trained labour. Consumers and manufacturers face mounting pressure to address the severity of the environmental problem to foster an environmentally sustainable future for their organisations and the global community (Slapø H. Et al., 2021 ).  According to a study conducted by Al-Marzouqi (Al-Marzouqi et al., 2022), the restaurant industry generated taxed revenues amounting to more than $26.9 billion from March 2019 to February 2020. This accounted for nearly 15% of the total taxed revenues and exhibited an annual growth rate of 4.3%. The New York State Division of Revenue and Financial Services reported the findings. The graph below illustrates the revenue trends of the "food and beverage outlets" industry in New York for six years from 2012 to 2017, with additional estimates extending until 2024. According to a projection by Statista (Statista., 2023), the food and beverage (F&B) merchants in New York are expected to earn a total revenue of 54.0 billion dollars in 2024.

Figure 2:  Food and Beverage Stores Revenues of New York from (2012-2024) Source: (Statista., 2023).

Click here to view Figure

Al-Marzouqi (Al-Marzouqi et al., 2022) assert that the food and beverage establishments in New York will continue to have financial challenges due to increasing expenses. In light of the observed increase in the producer price index, a metric that gauges manufacturers' compensation to their vendors relative to the previous year, it is noteworthy that the index remains within the lower double-digit range. Consequently, it can be inferred that the supply chain has not yet fully experienced the advantages stemming from the alleviation of rising commodity costs (Grigsby-Duffy et al., 2022). Nevertheless, the volatility of commodity prices, which significantly impacts the food and beverage industry, is unpredictable and influenced by various factors such as climatic conditions, geopolitical conflicts, and governmental decisions. The ongoing scarcity of workers remains a persistent obstacle. According to Singh (Singh et al., 2023), a reduction in interest rates would result in a decline in employment. Moreover, as depicted in the graph presented below, it is evident that technology tends to necessitate a larger workforce than is necessary. According to Grigsby-Duffy (Grigsby-Duffy et al., 2022) , food and beverage establishments in New York City continue to face challenges in terms of attracting and maintaining employees. These enterprises cannot sustain continuous salary increases, and they have realised that enhancing compensation alone is inadequate to improve employee retention. According to Singh (Singh et al., 2023),  workers perceive that the increase in earnings is not keeping up with the inflation rate. According to a study by Walker (Walker, J. R. 2021), medium-sized F&B shop firms should contemplate implementing flexible work hours, enhanced remuneration packages, and on-the-job training programs as strategies to retain their workforce.

Figure 3: Food and beverages World Commodity Indexes Source:  (Singh et al., 2023)


Click here to view Figure 

Moreover, it is worth noting that the food and beverage establishments in question employed 250,900 persons residing in urban areas. These individuals encompassed both professionals and self-employed workers. It is essential to highlight that the data provided pertains to 2018, representing the most recent time frame during which this information was gathered (Singh et al., 2023). According to a study conducted by Grigsby-Duffy (Grigsby-Duffy et al., 2022),   there is an increased number of individuals who commute from nearby areas to work in the food and beverage establishments within the City. About convenience, the food and beverage establishments in New York City would prioritise offering online buying options, such as takeout and delivery services, that are accessible to clients regardless of their socioeconomic circumstances. The requirements above include enhanced cost-effectiveness, better transparency in manufacturing expenses, and stricter oversight of processing fees and shipping costs (Singh et al., 2023). Al-Marzouqi  (Al-Marzouqi et al., 2022) has identified an additional developing trend in the food and beverage (F&B) establishments of New York, namely the adoption of electronic expiration date labelling. This technological innovation enables real-time monitoring of food safety and quality. These measures would reduce food waste and serve as a means of alerting consumers to spoiled food, hence mitigating potential health concerns associated with food consumption. Acquisition of these items is easily accessible to both customers and sellers. To oversee the movement of goods from farmers to consumers, several food and beverage enterprises have already begun adopting blockchain technology (Singh et al., 2023). In addition, the implementation of blockchain technology can enhance the efficiency of goods recalls and improve product transparency, thereby significantly impacting the responsibility of food and beverage stores (Grigsby-Duffy et al., 2022).

Innovative Growth Strategies in Dubai's F&B Sector: Elevating Dining Experiences and Leveraging Technology

Dubai's food and drink (F&B) sector has experienced significant growth in recent decades, characterised by the emergence of unique restaurants and culinary concepts. Akinwale (Akinwale, Y. O., 2020) have observed that food and beverage (F&B) enterprises operating in Dubai have employed diverse strategies in historical and contemporary contexts to enhance their financial performance. A few of these tactics typically encompass:

A study conducted by Slapo (Slapø H. Et al., 2021) observed that food and beverage (F&B) enterprises operating in Dubai have created unique dining experiences as a strategic approach to differentiate them from their competitors. For example, certain establishments offer dining experiences in submerged environments, while others provide dining experiences in elevated locations. According to Malhotra (Malhotra et al., 2022), providing excellent services by F&B enterprises can enhance revenue generation, expand the consumer base, and improve profitability. Moreover, it was observed that consumers exhibited a greater willingness to allocate additional financial resources towards extraordinary eating experiences. According to Singh (Singh et al., 2023),  it is recommended that F&B enterprises enhance their financial performance by implementing strategies such as supplying nutritious food and customer service, which can lead to increased expenses and the cultivation of repeat consumers. Moreover, providing outstanding dining experiences may play a significant role in establishing a robust brand image, a crucial factor for achieving expansion within Dubai's food and beverage industry. According to Pandirkar (Pandirkar et al., 2021) implementing practical online and offline suggestions can enhance a restaurant's visibility and allure a more significant number of patrons.

Slapo (Slapø H. Et al., 2021) assert that enterprises within the food and beverage (F&B) sector have prioritised providing diverse and high-quality products and services. To optimise earnings and sales, food and drink (F&B) enterprises might get advantages by incorporating high-quality items and offering diverse choices on their menu. According to Singh  (Singh et al., 2023),  food and beverage establishments in Dubai can acquire a competitive edge by consistently providing their customers with superior products. This practice increases customer satisfaction, resulting in heightened brand loyalty and positive word-of-mouth recommendations. Moreover, the food and beverage (F&B) industry can be incentivised to innovate and foster creativity, enhancing quality and promoting diversity. Cooks and food experts have the potential to develop novel and captivating food and beverage offers through their exploration of innovative flavours, ingredients, and culinary techniques  (Alzoubi et al., 2022)

Food and beverage businesses in Dubai are increasingly adopting technological advancements to enhance their financial performance. Singh (Singh et al., 2023) has noted that several restaurants have implemented online ordering systems, which might potentially decrease labour expenses and increase income.   Similarly, many food and beverage (F&B) businesses use data and analytics to gain insights into customers' behaviours and preferences.   This insight can empower these firms to improve their product offerings and pricing strategies  (Malhotra et al., 2022).

Strategies for Financial Excellence in New York's F&B Industry: Data-Driven Decisions and Sustainability

Barata Cavalcanti (Barata Cavalcanti et al., 2020) states that food and beverage (F&B) businesses in New York have adopted many historical and modern tactics to improve their financial performance. The list comprises the following elements.  Menu engineering is a process that entails examining revenue data to find the most lucrative menu items and those that are underperforming.   This could also assist food and beverage companies make data-driven choices on menu item preservation, prioritising advertising, and eliminating items (Tajpour et al., 2022) Food and beverage (F&B) companies can leverage different technologies to enhance their operational efficiency and customer experience.   One possible solution is to improve the ordering procedure and decrease labour expenses by introducing self-service workstations, smartphone applications, and online purchasing platforms.   Data analysis technology can enhance firms' understanding of consumer behaviour and preferences.F&B firms might potentially decrease expenses by using effective inventory management systems, engaging in fair pricing negotiations with suppliers, and managing personnel levels to cut labour costs (Singh et al., 2023) (Khassawneh O et al., 2021)  In the New York economy's food and beverage (F&B) sector, it is worth mentioning that food prices are regarded as one of the most substantial costs.   Restaurants and other food service establishments can efficiently manage food expenses by closely monitoring excess inventory, minimising waste, and using appropriate cost management methods.

Efficient marketing and advertising campaigns can function as a method for F&B companies to allure new consumers and maintain existing ones. Organisations can employ several techniques, such as using social media platforms, implementing email marketing campaigns, and customising advertising efforts, to expand their target market and boost their profitability. Food and beverage companies may implement sustainable practices to save costs and appeal to customers prioritising sustainability. These actions may include minimising food waste, including locally sourced products, and using eco-friendly packaging (Yach et al., 2010) Moreover, the F&B industry has been identified as a significant contributor to New York's greenhouse gas emissions, groundwater use, and waste generation (?ahin E. 2020) According to Singh (Singh et al., 2023), adopting sustainable business practices, such as reducing food waste, minimising water use, and utilising renewable energy sources, could mitigate these environmental impacts. Sustainable methods can enhance operational efficiency by reducing water and electrical consumption, minimising waste disposal costs, and optimising supply chain management. According to Cintron (Cintron et al., 2022) the implementation of these optimisations has the potential to lead to reduced expenses and increased profits. Food and beverage (F&B) enterprises operating in New York City possess diverse opportunities to enhance their financial performance. According to ?ahin (?ahin E. 2020)  combining these strategies may improve the profitability and competitive position of F&B companies.

A noticeable research gap lies in the comparative analysis between the Dubai and New York markets. While the review discusses each market's unique characteristics and challenges—such as labour shortages, technological adoption, and market growth—it stops short of cross-comparing these aspects to draw actionable insights. For instance, how do strategies for improving financial performance differ between the two markets, and what can they learn from each other? Another gap is the lack of focus on how external factors like political instability or environmental concerns impact these two diverse markets similarly or differently. Additionally, the review touches upon technology and sustainability but does not delve into how these trends shape future strategies in either market. Finally, consumer behaviour, a critical aspect influencing the F&B sector, is notably absent from the discussion. There's a gap in synthesising these various elements to provide a holistic view that could benefit stakeholders in both markets.

Methodology

The study employed an interpretivism philosophy and a subjective primary research design to explore productivity in food and beverage establishments in Dubai and New York. Utilising a qualitative approach and inductive reasoning, the focus was on diverse perspectives rather than statistical data (Bhattacharyya, D. 2009) (Ketchen Jr et al., 2006).  The sample comprised ten restaurant managers from both cities recruited via online job portals like LinkedIn. Data was gathered through semi-structured interviews facilitated by various online platforms and audio-recorded for easy transcription. Thematic analysis was employed to identify patterns in the data (Gupta et al., 2022). The study was cross-sectional, and ethical considerations like informed consent and confidentiality were rigorously adhered to (Daniel et al., 2011).  Interviews possessed all the themes and subthemes related to this study as shown in the below table (1):

Table 1: Themes and sub-themes from interviews

 

Themes and subthemes

 

Participants


Supported literature
 

1

2

3

4

5

6

7

8

9

10

 

Economic Factors

 

 

 

 

 

 

 

 

 

 

 

Market competition and trends

+

 

+

 

 

 

+

 

 

 

15,16

Financial Growth and strategies

 

+

 

 

 

+

 

 

+

 

12,17

Supply chain challenges

 

 

 

+

 

 

 

+

 

 

15,17

Social Factors

 

 

 

 

 

 

 

 

 

 

 

Labor market dynamic

+

 

+

 

 

+

 

 

 

 

15,17,11

Consumer preferences and behavior

 

+

 

 

+

 

 

 

 

 

21,19

Service quality and customer experience

 

 

 

+

 

 

+

 

+

 

16,23

Adoption of al technology

+

 

 

 

 

+

 

 

 

+

15,11

Technological Factors

 

 

 

 

 

 

 

 

 

 

 

Online ordering delivery

 

+

 

 

 

 

+

 

 

+

11,24

Use of blockchain and digital tech

 

 

+

 

+

 

 

 

+

 

19,11

Political factors

 

 

 

 

 

 

 

 

 

 

 

Impact of Political instability

+

 

 

+

 

 

 

+

 

 

19,26

Government Policies and regulations

 

+

 

 

 

+

 

 

 

+

26,11

Sustainability’s Factors

 

 

 

 

 

 

 

 

 

 

 

Environmental sustainability

 

 

 

 

+

 

+

 

 

 

30,11

Local sourcing and waste reduction 

+

 

 

 

 

 

 

 

+

 

31,21

Innovative growth Strategies

 

 

 

 

 

 

 

 

 

 

 

Unique dining experience

 

+

 

+

 

 

 

+

 

 

16,17

Menu dining experience

+

 

+

 

 

 

+

 

 

 

11,23

Marketing and branding

 

 

 

 

+

 

 

 

+

 

24,23

Results

Sustainability and Success Factors in Global F&B Markets: Insights from Dubai and New York

The participants were queried regarding the durability of food and beverage establishments in Dubai. Regarding this particular element, the participants held divergent perspectives. 

Interviewee three affirms that the quality of both food and service provided by the food and beverage (F&B) business is an additional vital factor. The discerning preferences of residents and tourists in Dubai have gained recognition, indicating that food and beverage establishments offering exceptional, unique, and memorable dining experiences are more inclined to achieve sustained profitability. Furthermore, providing outstanding customer service, extreme care to detail, and the establishment of a welcoming atmosphere may contribute to cultivating a loyal clientele.

According to the interviews, branding and advertising are significant determinants of the sustainability and financial success of food and beverage establishments in Dubai. Establishing a robust brand image and acquiring new customers can be achieved through implementing effective marketing strategies, increasing presence on social media platforms, and using recommendations through interpersonal communication. The establishment's branding of its food and beverage outlets may differentiate it from its competitors and create a favourable and enduring impact on consumers, provided that it remains consistent, unique, and representative of the outlet's core principles.

The participants were queried regarding the durability of food and beverage establishments in New York City. Regarding this particular element, the participants held divergent perspectives. 

According to interviewees two and four, the broadening of New York's cuisine is a crucial factor contributing to the city's sustained success of food and beverage establishments. New York boasts a rich cultural heritage characterised by diverse regional and local culinary traditions. Furthermore, food and beverage establishments that prioritise local and regional cuisine may experience tremendous success in the long run due to their ability to cater to the preferences and palates of local customers. The increasing prevalence of global gastronomy in New York City is an additional factor contributing to the sustained success of food and beverage establishments. The consumption of international cuisine, encompassing Italian, Chinese, and American fare, is experiencing a surge in popularity in New York. Nevertheless, these establishments face competition from well-established local restaurants that offer comparable cuisine.

According to the fifth interviewee, pricing and consumer preferences are significant factors that influence the performance of food and beverage establishments in New York. Consumers residing in New York frequently exhibit a strong inclination towards price sensitivity, indicating that food and beverage establishments offering competitive pricing will likely sustain their operations over an extended duration. Hence, based on the comments above, it can be concluded that branding and advertising play crucial roles in ensuring the sustainability and financial success of food and beverage establishments in Dubai. The use of effective marketing techniques can facilitate the establishment of a favourable brand identity and the acquisition of fresh clientele for a corporation. Moreover, it has been noted that food and beverage establishments that prioritise regional and local gastronomy have the potential for sustained prosperity as they can cater to their local clientele's dietary requirements and tastes.

Resilience and Challenges in the F&B Sector: A Comparative Study of Dubai and New York

The participants were queried regarding the present performance of the food and beverage establishment in Dubai. The participants held divergent perspectives regarding this matter.

According to the first interviewee, the F&B industry in Dubai has shown signs of recovery following the adverse consequences of the COVID-19 pandemic, which had a significant impact on the city's hospitality and tourism sectors. In addition, Dubai has undertaken many tactics to enhance the tourism sector, including implementing campaigns to stimulate domestic tourism and organising notable events such as the Dubai Food Festival. Nevertheless, the third interviewee affirms that Dubai has been acknowledged for its diverse food and beverage culture, offering convenient access to a wide range of international and regional cuisines. In addition to street supermarkets and eateries, the city is fortunate to possess a plethora of upscale dining establishments. Moreover, labour scarcity is a significant concern impacting Dubai's food and beverage establishments. Numerous enterprises have been compelled to curtail overtime hours due to the considerable labour scarcity resulting from high levels of underemployment and persistent deficits in the foreign workforce.

Regarding the present performance of the food and beverage establishment in New York, the participants expressed varying perspectives on this matter.

Interviewees three and five acknowledge that New York City is widely recognised for its rich and diversified culinary culture. It is characterised by various cuisines ranging from high-end establishments to mobile food carts and street vendors. The COVID-19 pandemic has resulted in the temporary or permanent closure of numerous eateries in New York City. However, there are indications of a gradual recovery in the food and beverage industry. Various factors, including meteorological conditions, geopolitical conflicts, and political measures, substantially influenced the pricing of materials that had the most pronounced ramifications for the food and beverage (F&B) sector in New York.

Innovative Strategies for Economic Viability in the F&B Sector: Experiences from Dubai and New York

The participants were queried regarding the strategies employed by F&B establishments to enhance their financial success. In this regard, multiple participants held divergent perspectives.

Dubai boasts many restaurants and pubs that provide exceptional dining experiences by creating unique and memorable atmospheres. The abovementioned elements encompass the establishment's architectural layout, illumination, recreational offerings, and holistic ambience. In addition, implementing themed dining was a prevalent tactic employed by food and beverage establishments in Dubai to enhance their economic viability. This encompasses dining in unconventional locations such as arid regions, elevated structures, or aquatic environments.

However, Interviewee Three acknowledges that one of the methods utilised by food and beverage establishments in New York is prioritising and highlighting the quality aspect. To attract customers and command higher prices, food and beverage establishments in New York City significantly emphasise providing superior food and beverage offerings. Moreover, it is observed that food and beverage establishments in New York often use novel menus to enhance their financial performance. The food and beverage establishments in New York City are widely recognised for their inventive menus that use locally sourced products and a diverse range of flavours. This phenomenon has garnered the attention of consumers actively seeking exceptional culinary encounters.

As per the statements made by Interviewee Five, one of the approaches embraced by Food and Beverage (F&B) establishments in New York is allocating resources towards acquiring and implementing novel technologies. Numerous food and beverage establishments in New York City have incorporated digital technologies, such as online ordering platforms and distribution systems to enhance operational efficiency and effectively respond to evolving consumer preferences. Furthermore, the food and beverage (F&B) establishments in New York often employed marketing strategies to strengthen their financial outcomes.

Strategic Innovation in Urban F&B Markets: Leveraging Diversity, Technology, and Localization in Dubai and New York

The participants were questioned regarding strategies that could potentially yield advantages for food and beverage establishments in Dubai. In this regard, multiple participants held divergent perspectives. 

According to the statements provided by interviewees two and four, it can be inferred that menu variety is a potentially advantageous strategy for food and beverage establishments in Dubai. Offering a diverse range of menu options that cater to different dietary needs, such as vegan, gluten-free, and low-carb choices, can attract a broader customer base and enhance sales performance. A varied culinary selection that accommodates diverse dietary preferences can improve customer satisfaction by showcasing the F&B establishments' attentiveness to their patrons' wants and preferences. According to Interviewee Five, ordering and delivering food online emerged as a widely adopted method that holds potential benefits for food and beverage establishments in Dubai. Food and beverage establishments have the potential to broaden their consumer demographic and enhance their financial performance by leveraging ordering and delivering via Internet platforms.

The participants were queried regarding the strategies that could potentially yield advantages for food and beverage establishments in New York. In this regard, multiple participants held divergent perspectives. 

Interviewees one and three affirm that implementing localisation as a strategy might potentially yield advantages for the food and beverage establishments in New York. New York City is renowned for its many neighbourhoods and cultural attractions. Food and beverage establishments in New York have the potential to successfully appeal to their intended demographic and offer a distinct and unparalleled dining experience by tailoring their menu choices and advertising strategies to particular localities. In addition, menu localisation and targeted marketing methods can provide a distinctive identity for restaurants and bars, differentiating them from competitors and appealing to prospective customers searching for novel eating experiences. Incorporating technology has been identified as a potentially beneficial method that could assist food and beverage establishments in New York.

According to Interviewee Five, utilising unique occasions and partnerships emerged as a prevalent technique that might potentially provide advantages for the food and beverage establishments in New York. New York City is renowned for its diverse array of events and activities held throughout the year, ranging from cuisine festivals to pop-up partnerships. Engagement in such activities can enhance brand visibility and appeal to prospective customers. Nevertheless, via the strategic implementation of regular events and partnerships, food and beverage establishments in New York City have the potential to cultivate a devoted client base, resulting in repeat visits for future events and positive word-of-mouth recommendations to acquaintances and relatives. In addition, engaging in philanthropic activities or establishing partnerships with local organisations may provide advantages for food and beverage establishments in fostering connections with their surroundings and establishing themselves as esteemed communal entities. Based on the comments above, it can be concluded that the utilisation of ordering and delivering online services is a widely favoured technique that can potentially provide advantages for food and beverage establishments in Dubai. Food and beverage establishments can enhance their customer base and financial gains by leveraging e-commerce and delivery services. Moreover, recent findings have revealed that technology can potentially improve marketing efforts by acquiring client behavioural data and preferences. This valuable information may subsequently be utilised to customise and refine advertising strategies.

Discussion

A comparative table was created to summarise the key points from the findings about Food and beverage (F&B) outlets in Dubai and New York (Table 1). The table will cover various aspects like the longevity factors affecting these outlets, their current performance, strategies for improving financial performance, and recommended strategies for future success.

Comparative Overview of F&B Longevity Factors

Table
2: Dubai and New York F&B outlets comparative table

Aspect

Dubai

New York

Longevity Factors

  • High-traffic locations beneficial.
  • Importance of parking and visibility.
  • Effective marketing and branding are crucial.

Diversity of cuisines is essential.

  • The F&B industry has a dynamic nature with frequent culinary trends.

Current Performance

  • Resilient to COVID-19 disruptions.
  • Diverse culinary offerings.
  • Scarcity of labour is a challenge.
  • Multifaceted food culture.
  • Challenges in recruitment and staff retention.
  • Struggle to maintain profit margins

Strategies for Financial Performance

  • Exceptional dining experiences.
  • Staff training for superior service.
  • Specialization in cuisines
  • Emphasis on quality.
  • Innovative menus showcasing seasonal ingredients.
  • Adoption of technology for order and delivery.

Recommended Strategies

  • Menu diversity catering to multiple dietary needs.
  • Upselling and cross-selling.
  • E-commerce and delivery capabilities
  • Integration of technology for better consumer data.
  • Organizing regular events and partnerships.
  • Digital marketing and SEO efforts.

Analysis of Current F&B Performance Amidst Challenges

Regarding longevity factors affecting F&B outlets, Dubai significantly emphasises location, especially in high-traffic areas like shopping centres and tourist spots. Effective marketing and branding are also vital to the long-term success of these establishments. In contrast, New York's F&B industry thrives on diverse cuisines and continually evolves with new culinary trends. The dynamic nature of New York's F&B sector contributes to its longevity, offering something new to residents and tourists alike.

Evaluating Strategies for Enhanced Overall Performance

Regarding current performance, Dubai's F&B sector has shown resilience against disruptions like the COVID-19 pandemic but faces challenges such as labour scarcity. On the other hand, New York boasts a diverse and multifaceted food culture. However, it struggles with issues like staff retention and maintaining profit margins. For financial performance strategies, Dubai focuses on exceptional dining experiences and staff training for excellent customer service. Specialisation in specific cuisines is another approach. In New York, the emphasis is on quality and innovative menus that showcase seasonal ingredients. Many establishments also integrate technology to improve ordering and delivery systems.

Future-Proofing F&B Outlets: Recommended Strategic Approaches

For recommended strategies, Dubai's F&B outlets could benefit from menu diversification, catering to various dietary needs, and upselling and cross-selling techniques. E-commerce and delivery capabilities can also provide valuable consumer data for better marketing strategies. In New York, adopting technology could offer significant advantages, especially in gathering customer data for targeted marketing. Establishments can also focus on organising regular events and forming partnerships with other businesses to cultivate a dedicated customer base.

Conclusion

In conclusion, the research provides valuable insights into the food and beverage (F&B) industry in Dubai and New York, touching on longevity, current performance, and strategies for financial improvement. Regarding longevity, Dubai focuses on strategic locations and strong branding, whereas New York thrives on culinary diversity and adaptability to trends. As for current performance, Dubai's F&B sector has demonstrated resilience amid challenges like COVID-19, but it is grappling with labour shortages. In contrast, New York's industry is rich in food culture but faces staff retention and profitability issues. Regarding financial performance strategies, Dubai emphasises exceptional dining experiences and customer service training, while New York leans on quality, innovation, and technological adoption. Future strategies for both markets are diverse. In Dubai, diversifying menu options to cater to various dietary needs and embracing e-commerce can drive growth. Integrating technology for data-driven decisions and organising regular events in New York could be game-changers. Both cities show promise and challenges, but it's clear that adaptability, quality, and a strong understanding of consumer needs are essential to sustainable success in the F&B sector.

Acknowledgement

There is nobody or individual to acknowledge as the study was a self-sponsored research work.

Conflict of Interest

There is no conflict of interest.

Funding Sources

There are no funding sources.

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