Capturing the coffee shop market in the Middle East
The coffee business in the region is burgeoning with international chains and homegrown coffee shops battling traditional cafés for a share of the business. What does it take to be successful in this competitive market?
There are more than 4,000 coffee shops and tea houses in the region, with both traditional cafés and specialist coffee shops experiencing impressive growth. Serving as an alternative to bars and pubs, coffee shops in the Middle East are an outlet for people to gather and socialize. “Year after year we are seeing people more interested in spending time in coffee shops, in Dubai and also in Lebanon,” said Jeanine Ghosn, managing director of Gabriel Bocti (regional distributor of French-roasted Cafés Richard).
Figures attest to this trend. According to Euromonitor, the UAE saw USD 122 million in modern coffee shop growth from 2007 to 2012. This growth was led by international operators such as Starbucks and Caribou Coffee, while French cafés such as Paul, Eric Kayser and Ladurée are part of the mix. Locally-brewed chains of Western-style coffee houses such as Café Younes and Moka & More are also taking sips from this cup. “There’s definitely lots of space to grow,” concurred Amin Younes, chief executive officer, Café Younes.
Independent coffee shops are on the rise in the UAE in particular. “While a lot of the Middle Eastern clientele is still attracted to known brands rather than local start-ups, this trend is already being reversed in Dubai. It needs more time in the rest of the GCC,” said Koen Theunis, managing partner of the Dubai-based restaurant consultancy Ktconsulting & Concepts.
Far from getting left behind, traditional cafés have reinvented themselves to keep up, copying the clean lines of international competitors, and opening outlets that are spacious and modern, yet offer Arabic-style coffee alongside espresso-based beverages and Wifi. Once the domain of men, many traditional cafés now draw in women, students and youth.