ROI period doubled for new F&B investments

ROI on F&B business has almost doubled for business in Dubai from three to four years, to five to seven, according to Farah George, general manager of Food and Beverage at Al Khayyat Investments.

Speaking at the Catering News ME Big F&B Forum, held at the Ritz Carlton, JBR last month, Farah was joined by Vikrant Rohatgi, associate director and lead of the Strategy Group at KPMG.

Vikrant said: “Over the last few years investors have seen the F&B sector grow and it’s been a resilient sector even in the downturn. Investors are willing to stay invested for longer periods of time and take lower returns because of the solidity of that return.

“New concepts coming are increasing competition and with that the sustainability of the concept and profitable growth of concept are becoming increasingly important. Return expectations are dropping year on year,” he added.

To read about the future of F&B finance in Catering News ME, click here

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