How UAE's food industry can survive in today's world
The food and restaurant industry is one of the most significant industrial sectors in the UAE, driving its economy significantly. Dubai and Abu Dhabi are famous for having a variety of restaurants and food distribution companies. Dubai, alone, has more restaurants than New York or London. Needless to say, restaurants have surely gone through losses due to the pandemic since people had to follow strict lockdown guidelines. However, as one of the leading food supply companies in the UAE, we know there has been an impressive surge in the demand for packaged, healthy foods and other essential items since the pandemic broke out. There has been less food waste and more people opting for self-sufficiency, which is fortunate. So, to ensure that the UAE food industry flourishes, these changes will have to be taken into consideration.
Frozen food distributors in the USA is a global hub for food trading, import foods, like grains and oil, and grows a variety of vegetables, fishes, chickens, and goats on their farms. So, the UAE will surely intensify its efforts to enhance the production of crops or foods that are usually imported, in order to decrease their reliance on other countries, without disrupting the supply. The food and beverage market is estimated to boom by at most 6% in the following year, and the growth will be enhanced by retail sales.
Common Problems Faced by Restaurant Businesses Due to Food Distribution
There are certain challenges that the food industry in the UAE has had to overcome though, such as high rentals in the UAE, incredibly high competition, lack of a USP, high labour costs, and high food costs.
Inconsistent quality of products: Restaurants rely on food distributors to provide them with high-quality ingredients to prepare their dishes. However, some food distributors may not always deliver products of consistent quality, which can affect the taste and presentation of the dishes.
Late or incomplete deliveries: Restaurants often have tight schedules and rely on timely delivery of ingredients to ensure that they can prepare their dishes on time. Late or incomplete deliveries can disrupt kitchen operations, leading to delayed service and customer dissatisfaction.
Limited product selection: While food distributors offer a wide range of products, they may not always carry the specific ingredients or brands that a restaurant needs. This can be a problem for restaurants that have unique or specialty dishes that require specific ingredients.
How to Overcome Food Distribution Challenges
The best way to grow is to work on overcoming these challenges by following the steps given below:
Choose a location that fits your requirements
If you are starting a new food business, consider important factors, such as your target audience, cost of obtaining raw materials, and menu prices, while looking for locations for your restaurant. Whatever location you choose should match all your specific requirements and should not go further than your budget.
Focus on customer retention
Since there is too much competition in the UAE's food industry and not enough customers, every food business needs to focus on customer retention. So, it should leverage CRM, i.e., Customer Relationship Management, and loyalty programs, and offer special discounted rates.
Establish your brand with a USP
Before you start a food business, it is essential that you have a solid understanding of what your customers want or are looking for, and you need to jump on the trend bandwagon and establish yourself with the development of a USP. This will give you the competitive edge you're looking for and will help you beat the competition significantly.
Control labour costs
In the UAE, labour costs are very high, and a good solution to overcome this problem is to give your staff incentives and automate unnecessarily time-consuming processes by integrating advanced tools and technologies to increase efficiency, thereby leading to more productivity and comfort.
Manage food waste
In order to control food costs, manage food waste by minimizing waste and reusing most of it, if possible, and managing inventory without any additional costs. In addition, indulge in yield management.
As one of the renowned food industries in Dubai, we, at Al Maya Trading, know these are some of the best practices that can help flourish the food and beverage industry here. In the last year, the pandemic has surely taken a heavy toll on the growth of the industry in the country.
However, if FMCG distributors in UAE, the distribution network and other player involved works tirelessly to overcome the challenges resulting from the pandemic as well as the generic challenges that existed before, there will be a light at the end of the tunnel.