Food delivery will stabilise 40% of F&B - Sunset Hospitality CEO

Antonio Gonzalez said certain brands need to adjust their business model to adapt

Antonio Gonzalez, CEO of Sunset Hospitality
Antonio Gonzalez, CEO of Sunset Hospitality

Increasingly growing food delivery businesses will stabilise 40% of Dubai’s F&B industry, according to the CEO of Dubai-based Sunset Hospitality, which operates brands such as Black Tap, Azure and Drift beach clubs.

Speaking to sister title Arabian Business, Antonio Gonzalez said the rise of food delivery businesses has not affected his brands but will pose a challenge for transactional F&B outlets which do not focus on the dining experience.

“Not in our case, [it hasn’t affected us] because of the type of brands that we operate and own, but it’s a trend that is going to continue growing and it’s not going anywhere. The delivery business is going to stabilise around 40 percent of the industry in the long term, and will affect mainly what I call transactional brands which don’t create this whole experience,” he said.

Gonzalez said those outlets will have to adjust their model to retain their traffic.

“All the brands we run are experiential, where we focus on table service, we focus on music, decoration; you don’t get that with just delivery. But brands that are transactional, they have to adjust their model because the convenience of delivery will take away a lot of the traffic they had in the past so that’s only going to be growing until we achieve maturity,” he said.

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