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Strategies to Help Your Restaurant Grow in 2022

Having managed multiple restaurant chains in Abu Dhabi, we know how notoriously difficult it is to get your restaurant business to grow, especially in this economy. However, with a bit of strategic planning and effort, it’s not impossible.

Here are 6 strategies you can use to help your restaurant business thrive in 2022:

 

1) Pay Close Attention to Customer Feedback

Like many other businesses, restaurants play a vital role in our economy, especially in Abu Dhabi. Yet, we see many restaurant business owners are left clueless about why their sales have gone down over the past few months. While some may consider the pandemic as a reason why, if you dig deep into the business operations, you will find that it’s very rarely the case.

Customers pay close attention to the taste & quality of the food, the price, and the quality of service that they receive when they interact with your business. Any compromises in this regard can drastically change how customers engage with you.

The chef who used to work at your restaurant may no longer work there, your portion sizes are smaller now, the ingredients might’ve gone through some readjustments, or maybe you removed a menu item that customers used to love, and that. There could be many reasons why. However, if you’re not paying close attention to what your customers have to say about these changes, you may never really find out.

Not all customers will openly walk up to you & tell you what they thought about the food straight away. This is even more prevalent considering how more & more people are using apps like Talabat, Zomato & Deliveroo to order their food in. That said, customers are in fact more than likely to leave reviews about their experience on sites like Google, Tripadvisor, Talabat, etc.

Reviews play a key role in influencing a potential customer to buy from you. A good reputation is hard to earn but very easy to lose. This is why it’s important to pay close attention to what customers are saying about your business and respond appropriately.

 

2) Reward Your Loyal Customers

Rewards like offering discounts, free gifts, complimentary meals, etc can help your business attract and keep these customers happy.

Loyal customers are a valuable asset for any business. They are more likely to keep coming back time & again, recommend your business to others, and be more loyal in the future. When you make your customers happy, they tend to leave positive reviews and return for future visits.

A simple gesture like offering something as small or simple as a dessert or an appetizer on the house will surprise and delight customers, making them happy and likely to return in the future. Plus, it can lead to more sales because happy customers are more likely to spend money than those who are not. Just make sure that your rewards program is affordable for your business to maintain.

 

3) Optimize Your Menu

One of the most important aspects of any restaurant is its menu. A well-designed menu can help to increase sales and profitability, while a poorly designed menu can lead to decreased sales. When designing your menu, you need to consider 2 things based on the community in which you are located.

Firstly, consider the spending habits of your customers, and how much they are likely to spend on average for a typical meal. Secondly, consider the kind of cuisine they are accustomed to. While there is no harm in trying to innovate & provide a unique dining experience for the community, it’s not worth taking a risk, especially if your whole business is based on an entirely new concept.

If the majority of customers cannot afford to buy from your menu, sales are going to be done. The same scenario applies if your customers aren’t interested in the dishes you offer.

Look at your sales reports and analyze what kinds of dishes sell poorly, and try to optimize your menu. At the same time, do a market survey and look at what kinds of dishes your competitors are offering, and at what prices. While it may be difficult to compete on price directly, you can at least try to compete on the value & service that you provide.

 

4) Offer a Remarkable Dine-in Experience

When we talk about customer experience, most may assume it begins when a customer’s order is taken, or when food is served to them. However, this is not actually true. From a customer’s perspective, it starts from the moment they walk into the restaurant.

The atmosphere, friendly staff, and level of service, all play a key role in delivering a great dine-in experience. Customers who enjoyed their time at your restaurant will go on to rave about your business to their family, friends, and coworker. Similarly, if they had a less-than-ideal time at your restaurant, chances are, they’ll make sure to let everyone they know avoid going to your restaurant.

This just goes to show how important it is to ensure each and every customer has a great experience when they interact with you, regardless of whether they are dining in, having a takeaway, or placing an order online.

 

5) Staying Engaged With Your Local Community

Local businesses like restaurants play an important role in the local economy, and the community around it, becoming deeply integrated and gaining a unique identity as a result. As a local restaurant business, it is important to stay engaged with the local community.

This means being involved in local events & getting your name out there through activities like volunteering, sponsorships, donating to local charities, etc.

This will not only help you build a positive reputation but also help you grow your business.

 

6) Diversify Your Business

In this digital age, it pays to have a strong digital presence. Building on & improving your digital presence is a fantastic way to tap into a wider audience, thanks to the increased visibility that you gain through these digital platforms.

Social Media Platforms like Facebook, Instagram, and Tiktok, are used by millions of users in the UAE.

Leveraging Food Delivery platforms like Talabat, Deliveroo, and Zomato, is a fantastic way to gain new customers. They are very popular & widely used by many customers to order food online, straight to their homes.

We hope these 6 tips will help you grow your restaurant business in 2022. Remember to focus on quality food, customer service, and marketing to keep your business thriving.

 

Where we can help:

With over 17 years in the industry, we understand how it might be difficult to identify what areas of your business need attention and make the right decisions to drive your business forward. Having owned multiple restaurants and other food companies, we have a lot of experience in helping businesses just like yours get back on track and lead to continued growth.

If you believe your restaurant business has the potential to make a difference and would appreciate guidance in realizing your goals, then feel free to reach out to us and let us know how we, at Al Nomani Holding Group can help you & your business grow.

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Maintaining High Food Quality & Safety Standards in the F&B Industry

The food & beverage industry in the UAE was valued at over $20 billion in 2021.

It’s easy to get into the industry due to the low barrier to entry. However, this also means there’s high competition, compared to other sectors.

In order to be profitable, you have to be efficient. Even so, you cannot afford to cut corners at the expense of sacrificing food quality standards.

The UAE heavily depends on imports to satisfy a large portion of its food needs, therefore, ensuring food security should be upheld at all times.

Any food-related illness can become very serious and prove to be fatal to some customers, especially children, pregnant women, the elderly, and those with vulnerable immune systems or allergies.

The impact of such illnesses can affect the society severely, from loss of earnings, unemployment, and low staff morale; it can also lead to negative publicity affecting trade & tourism in the country.

In order to ensure only food that complies with the highest quality standards is imported into the country, the Federal Law No. 10 of 2015 was introduced. It imposed strict controls & standards to ensure food safety throughout the food chain.

This law allows the Ministry of Economy to impose fines from AED 10,000 to AED 500,000 for offenders, and depending on the violation, a prison term could also be imposed.

Maintaining food safety standards is a vast topic. Here’s a brief outlook on the various components involved in the process of ensuring food safety in a food & beverage business.

 

Trade Licensing & Approvals

As a food & beverage company, you must have a valid trade license obtained from the relevant government authorities before you start operations. Make sure to select the appropriate business activities related to your company when you apply for the license.

Once you obtain your license, you are not allowed to engage in any other activities, so make sure you mention all the related business activities clearly.

 

Construction & Design 

Whether you plan to construct a new location for your business or renovate an existing one, you have to submit the layouts to the Food Control Department prior before you begin construction or renovation of the establishment. Only proceed once you obtain approval.

If you plan to make any major changes that can affect the main layout or change the process flow, then you must obtain prior approval from the Food Control Department. You don’t need to do this if you only intend to make minor changes that do not alter the main layout, for example; the installation of shelves or cabinets in a storeroom.

Select a good location that is set far away from waste disposal facilities, streets, roads, and lanes to ensure there is no risk of contamination.

 

Equipment Safety 

As a food & beverage company, you will have to ensure the usage of safe and suitable requirements & utensils at all times. They must be designed to be durable under typical working conditions.

 

Food Safety Management 

The Food Control Department requires all food & beverage companies to implement a risk-based food safety program.

As such, make sure you employ at least 1 on-site Person in Charge who is certified in Food Safety and is aware of the regulations and protocols enforced by local governing bodies. They should be aware of all the relevant food safety principles and risks associated.

They will be assessed via written examination, of which the Food Safety Department will review & issue a certificate valid for a period of five years, should they pass the written assessment.

The requirement is to have at least 1 Person in Charge present at all shifts, actively overseeing all operations that could impact the safety of the food.

 

Food Handling & Processing

Every food & beverage business should take all the necessary steps to prevent the likelihood of contamination, and ensure the microbiological safety of the food at all times. This is to ensure you only process food that is safe.

Your food sources should also be inspected to ensure they are approved by the Food Control Department. Upon request, you must provide information regarding the food you source.

An authorized officer should be satisfied with these records. You must also maintain relevant records as evidence in situations that call for it.

 

Food Inspection

You must inspect incoming food, where it and the packing should be free from visible damage, are not contaminated, and are protected from any possible contaminations as well.

You must also ensure the time gap between receipt and expiration is sufficient enough for usage and avoid wastage of stock. Once received, the food should be moved into storage promptly.

 

Prevention of Food Contamination

Make sure there are appropriate restrictions in place to ensure designated staff has access. Have measures in place to avoid food contamination via other parties such as visitors & maintenance staff.

Avoid handling food with bare hands. Use disposable gloves, and clean disinfected utensils.

Ensure utensils are washed and properly disinfected before being used with other foods.

Food has to be stored, displayed, prepared, and served in a way that prevents contamination.

 

Food Labeling & Packaging

Food has to be packaged and labeled in a way that provides the necessary protection to last through its shelf life. This process has to be carried out in a hygienic environment. As far as labeling is concerned, the ingredients used in the production of the product have to be clearly labeled and must be clearly identified by the consumer.

The same applies to any products that contain allergens.

 

Storage, Transport & Disposal

All food storage & transport facilities should be designed in a way to preserve the safety of the food and prevent contaminations. All high-risk foods should be in a temperate controlled environment to prevent microbial growth and product deterioration.

A first in, first out approach must be maintained in storage areas. Food products removed from storage should always be the oldest stocks present at hand.

Food that is found to be unsafe or unsuitable should be marked, labeled, and isolated before being disposed of as quickly as possible. You must maintain a record of all rejected items.

 

Cleaning & Maintenance 

All facilities should be subject to regular cleaning & maintenance protocols which should cover all elements such as;

  • Disinfection
  • Pest control
  • Waste Management & Disposal
  • Building & Equipment Maintenance

All equipment and utensils that are in use should follow an acceptable standard of cleanliness at all times.

 

Personal Hygiene

As a food & beverage company, you must have policies in place that ensure all employees maintain a high degree of personal hygiene at all times.

Make sure they are free of any illness or communicable diseases and undergo medical fitness tests conducted by the related governing bodies.

Any food handler suffering from a communicable disease should submit a written report to the person in charge. When returning to work from medical leave, a written clearance must be submitted from the treating physician.

 

Staff Training 

A documented training plan should be present for all employees based on their training requirements. All the staff that are involved in the food handling process must be thoroughly trained to ensure food safety standards are upheld and risk is minimized as much as possible.

 

Customer Complaint Handling

Your company should have a system to handle customer complaints, which should be able to guide relevant staff on how to respond, investigate and process any food-related complaints.

All food-related complaints should be logged in the complaints record.

We hope you found this blog post useful to get an idea of how the food & safety standards work here in the UAE. It is a vast and comprehensive process that is set according to world-class standards. It is difficult to fully document within the limits of a blog post.

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How to find & successfully pitch your restaurant business to Investors!

Opening a business is expensive. To open a restaurant in UAE, it’ll cost you anywhere from AED 500,000 to AED 1.25mn, depending on the size, location, and lease costs.

Unless you’ve already founded and sold a few businesses before, chances are, you will need some extra funds to get your business up and running. This is where a restaurant investor can come in to help through capital investments.

An investor could be friends, family, investment companies, angel investors, or even venture capitalists.

In addition to providing you with capital in the form of money, an investor’s expertise can prove invaluable, regardless of whether you’re an entrepreneur looking to open a new business or an existing business owner looking to open up a new location. Almost a third of all new restaurant businesses close down within their first year.

Fierce competition among existing and upcoming new restaurants can make it hard for a new restaurant business to stay afloat. This is where the expertise and industry exposure of a food investor can help extend the life of your business.

 

Playing a part in the growth of the business 

If you are an existing business owner, a food investor can help support the growth of your business, whether you wish to open a new location, start franchising, new menu developments, expand your business offerings, expansions, etc.

 

Support you in keeping the business a float

Every business is bound to experience a period of hardship during its lifetime. In such instances, an investor can provide financial assistance to stay afloat while also providing you invaluable expertise that can help turn things around for the business.

 

Provide you with numerous connections to expand your network

An investor that has a lot of connections within the industry can open up a lot of doors for your business. This can help you save a lot of time, money, and resources. You may even find more opportunities to grow your revenue potential through these connections.

 

Here’s why it’s important to find a good investor for your restaurant business: 

When you are considering bringing an investor onboard, you need to understand that this relationship will involve giving up some control of your business. Any decision that is to be taken has to be signed off by both the parties, you and the investor.

You will also have to share profits (and losses) with them. Most business owners are not fond of this. This is mostly due to the risks involved when bringing someone new into the business.

Choosing the right investor should be considered a make-or-break decision. In our experience as a restaurant business investor, we’d advise you to look for an investor who you can trust.

They should be able to relate to your passion and should show genuine interest in the growth of your business beyond the money that they’ve invested. A good sign to look for in an investor is to see how they view their involvement in the business.

A good investor will consider their investment as a partnership. They show genuine interest and share the same passion as you do. They are interested in establishing a long-term relationship with you that is based on trust, honesty, and transparency.

Finding such investors can be hard, and even challenging, but don’t let them hold you back.

 

But, where do you find investors for your restaurant business?

Here are a few ways you look for potential restaurant investors:

  • Talk to other restaurant business owners like you.
  • Who have they worked with?
  • Where are they based?
  • What industries are they familiar with?
  • Would they recommend you consider reaching out to them? If so, why?
  • Search online for investor databases in the UAE and look for companies that cater to restaurants.
  • Here’s a list of investors in Abu Dhabi, and Dubai for example.
  • Attend networking events, conferences, etc to expand your network.
  • Join & become an active member at your local Chamber of Commerce.
  • Attend local business networking events; here are some upcoming events that you can participate in.
  • Use Linkedin to look for investment companies & other capital investment firms in the restaurant industry.
  • Make use of the filters that are available to you to narrow your search down to city & industry. Here are some tips on maximizing the use of LinkedIn’s robust search feature.

Once you find a potential investor that you are interested in partnering up with, it’s time to pitch your business to them.

Tips on Successfully Pitching Your Business to Potential Investors

Create a Solid Business Plan

Successfully pitching your business to investors starts with a well-defined business plan. Here’s an outline of what your business plan should outline:

  • A quick summary of the company’s background
  • Information about your niche
  • Your market opportunities & Trends
  • What are the technologies available to you?
  • Who is your Competition?
  • Your Sales & Marketing Strategy
  • What milestones are you planning to work towards?
  • What products & services do you aim to offer to customers?
  • Information about your team
  • Your projected financials (best-case, and worst-case scenarios)
  • Information on Patents & Other Assets You Own

It is a good idea to maintain a short & concise business plan for easy reference, as well as an extended version for a more detailed outlook on these areas.


Define Your Story 

Every business has a unique story attached to them, and yours is no different. Sharing your passion and drive behind the business in the form of a story is a great way to get investors to get to know your business better, and understand the challenges you’re facing. It is a fantastic way to get them to develop a common interest that mirrors your own.


Practice Your Pitch 

Being able to explain the value & potential of your restaurant business to potential investors clearly & quickly is key. Many business owners walk into meetings unprepared thinking they know their business well.

Take the time to simplify your pitch as much as you can, and create an accompanying presentation (pitch deck) to support your pitch.

Be clear on what you want to achieve, how you aim to achieve it, and what you need from investors to make it happen.


Create a Pitch Deck 

At the end of the day, we have to understand that a pitch deck is meant to act as a visual aid to support our pitch. Having lots of bullet points and walls of text on your slides is only going to make your investors “read” your presentation, not listen to what you have to say.

Invest enough time in crafting a well-designed pitch deck that flows well with your pitch.

Remember, you should be able to present your pitch quickly & efficiently.


Prepare financial reports & sales projections to support your case 

Have reports & data at hand to support your case and demonstrate how you can take the support you receive from your investors and deliver upon your goals.

There are a lot of free resources available online that you can use to create your own reports & charts to present to investors.

We at Al Nomani Holding Group, understand how picking the right investor for your restaurant business will take time and a lot of effort on your part. Throughout the years, we’ve had the privilege of owning & developing multiple restaurant food chains all over UAE. As a way to realize our vision & give back to the country, we’re looking for aspiring restaurant businesses who are looking for investors to grow.

If you, as a restaurant owner, believe that your business has the potential to make a difference, and require help in realizing your goals, then feel free to reach out to us and let us know how we can help you grow as an investor.