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29 March 2024

Dubai firm expansion to open 1,000 jobs

Published
By Parag Deulgaonkar

Year 2020 will mark an important milestone in the history of Hotbrands International (HBI), a Dubai-based food services company.

When UAE hosts the six-month-long World Expo 2020 in Dubai, bringing over 25 million visitors to the country, the home-grown brand will open its 100th restaurant.

Avinash Bal, Chairman, Hotbrands International (HBI)

“We currently have 50 restaurants and hope to reach a conservative figure of 100 by 2020.

“We will invest approximately Dh73.4 million ($20 million) in adding new stores and the infrastructure needed to support that,” Avinash Bal, Chairman, Hotbrands International (HBI) told Emirates 24|7.

Among the 50 new outlets planned globally, the company is looking at opening at least one near the Expo 2020 venue, which is coming up in the exhibition district of Dubai World Central.

“We would obviously like to have spaces close to the Expo 2020 venue, however, with another five years of construction underway, it is quite difficult to say exactly where they will be,” he adds.

HBI’s quick service restaurant concept includes Shamiana, Magic Wok, Santino’s, Sala Thai and Sugoi, while the casual dining restaurant concept features Haru.

Excerpts:

What is your growth strategy up to 2020?

HBI is currently laying down the strategy for the next three to five years for what we believe is going to be a sustained period of growth in a maturing market.

We have also just successfully launched a concept within the US and plan to bring that to the region, once consolidated.

Our strength has always been creating brands as per the given market opportunities and is something we shall continue doing.

How many restaurants do you plan by 2020?

We have 50 locations and hope to reach a conservative figure of 100 by 2020.

How many jobs are you likely to create in the UAE and the region?

It is likely that our employment base will increase by approximately 1,000 to 1,200 people during this phase.

What is the level of investment that you are looking at during the expansion phase?

As we own and operate all of our restaurants, we intend to invest in infrastructure and creating a platform that will support the growth, up to 2020 and beyond.

We estimate that we may have to invest approximately Dh73.4 million ($20 million) in adding new stores and the infrastructure needed to support that.

Will you be looking at a franchising model, acquisitions or joint ventures in your future expansion?


The plan is currently being developed with the existing business model in mind. However, should we come across a potential partner who shares the same vision and passion as us, we are always open to discussions.

Do you plan to open restaurants near the Expo 2020 venue?

There are currently a lot of spaces becoming available all over the UAE in particular and we are investigating each one very seriously.

We would obviously like to have spaces close to the Expo 2020 venue; however with another five years of construction underway, it is quite difficult to say exactly where they will be.

How do you plan to cater to communities in the new Dubai areas?

Being the owner of all our brands, we are in a unique position of being able to adapt any of our concepts to go into the requirements of any specific community. Therefore, we are very excited about the opportunities coming up in these communities. We already have a presence in Green Community and Dubai Silicon Oasis, with more community signings in the pipeline.

What is your forecast for the food industry in the UAE and the GCC region by 2020?

Dubai itself is already home to a great host of international brands; however, the other emirates are still open playing fields, as far as brand presence is concerned.

Therefore, I feel that we will see considerable growth in those emirates, as they are also making their own plans for the future and tourism seems to be playing a big role.

As for the GCC in general, consumer tastes are forever evolving and with the cultural mix in all of these countries, we will see more diverse food offerings to cater to all palates. We are in the unique position that we successfully operate diverse cuisines and have the ability to create more concepts which can be adapted to suit the environment in the region.

Do you generally rent or buy properties where you operate your restaurants?

Being in the business for over 23 years here, renting was only the ever option until much recently.

However, now that buying property for retail space is becoming more readily available, we will certainly be investigating as to what fits with our business requirements and feasibilities.

What is the biggest challenge for the F&B industry today?

The eating habits of people around the globe are changing quite rapidly and constantly, due to the ease of travel and exposure to information technology and instant communication. Given this environment, it is challenging for operators to create concepts that can endure the passage of time and eventually go on to become international brands.

We are fortunate that due to our long history of being in this business and having the in-depth knowledge and the support and loyalty of our customers and employees, we are considered a reliable partner by landlords, suppliers, etc. who believe that we have the ability to compete and succeed in this challenging environment.