Nandos to double restaurants in UAE

Several small restaurants had to close down business due to recession and economic slowdown, but the middle class restaurant business in Dubai has been sustained by the increased flow of tourists and business visitors to the city, said the owner of a leading chain of Middle class restaurants in the UAE.

Suhail Gidwani, Chief Executive Officer and owner of Nandos, a premium chain of restaurants serving grilled Afro Portugese Peri Peri chicken dishes, said restaurant business in the UAE have been facing major challenges and several outlets are closed, but business has been sustained by the large number of tourists and business and family visitors to the country. Nandos opened its tenth outlet in the Dubai Internet City and plans to double the number of restaurants in the UAE.

“The UAE restaurant market has witnessed several changes, and during the recent periods of economic downfall and recession, business in the middle class neighbourhoods and shopping malls frequented by the middle class has definitely come down. However, the loss of business due to the reduced number of domestic customers is compensated by the increased inflow of visitors to the country, especially the middle class tourists, family and friends visiting their relatives and even business delegates. Due to these positive factors, we are opening our tenth branch in the Dubai Internet City, which involves a minimum investment of $1 million.

“This is our tenth outlet in ten years of operation and we plan to have our next outlet in the Al Ain Mall by next August. We are also planning two-three new outlets including one in Abu Dhabi.”

The other Nando outlets includes the Barcelos Cockerel on Sheikh Zayed Road, the Greens , Al Ghurair City,  Al Rigga, The Dubai Mall, The Residence, Burj Khalifa, Arabian Center in Mirdif, Dubai Marina, Al Qasba in Sharjah and Safeer Mall in Ras al Khaimah.

“We will be opening our next outlet in Al Ain Mall, Al Ain, where the rent will be higher because there is already a captive audience there. Similarly we are opening an outlet in the Dubai Internet City because there is a captive market there, and customers from DIC will not go to other restaurants of the chain during working days. We get a lot of customers from DIC during week days and we have decided to be near the customers.”

He said the property market has witnessed some changes, but rent for commercial space on the high street like Sheikh Zayed Road has not come down, but in shopping malls the per square feet rate has come down from the high levels of boom periods. 

However, overall rent has not come down substantially. “We have renegotiated rent level in some properties and for some properties we have long term agreements signed about ten years ago. The average cost of opening a new restaurant has definitely come down now.”

He said the profit margin in restaurant business has been under pressure, but smart restaurant operators did not jack up the prices, but controlled their cost factors.

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