The estimated total number of hospitality outlets in the United Arab Emirates (UAE) is 17,124. On the attached spreadsheet in column C, rows 10-16, the number of outlets, broken down by the sectors can be found.
Food & Beverage Sector: Total Number of Outlets
- According to Anurag Bajpai, KPMG Lower Gulf's Partner and Head of Retail, there were a total of 16,234 food and beverage outlets in 2017 and this was projected to increase to 19,053 by 2020.
- In 2018, the estimated number of food and beverage sector outlets in the United Arab Emirates was 17,124 outlets. (see calculations below)
- According to a report by Agriculture and Agri-Food Canada, the consumer food service and food and beverage sector outlets in the UAE in 2013 were in total 5,818 outlets, which includes 1,631 cafe's/bar outlets, 1,615 full-service restaurant outlets, 2,325 fast food/quick-service restaurant outlets, and 113 street stalls/kiosks.
- The growth rate (CAGR) of UAE food and beverage outlets from 2013-2017 was 29.24% CAGR. (see calculations below)
- The projected growth rate (CAGR) of UAE food and beverage outlets from 2017-2020 is 5.48%. (see calculations below)
Distribution Among Sectors
- The total number of QSR/fast food restaurant outlets in the UAE in 2018 is estimated to be 6,843 outlets. (see calculations below)
- The total number of fast food (street stalls/kiosks) outlets in the UAE in 2018 is estimated to be 332 outlets. (see calculations below)
- The total number of full-service restaurant outlets in the UAE in 2018 is estimated to be 4,753 outlets. (see calculations below)
- The total number of bar & cafe outlets in the UAE in 2018 is estimated to be 4,799 outlets. (see calculations below)
- There are over 50 catering & food delivery company outlets in the United Arab Emirates.
- There are 726 hotel outlets in the United Arab Emirates, according to Federal Competitiveness & Statistics Authority report. These hotel outlets are distributed as follows: 175 5-star hotels, 196 4-star hotels, 305 3-star hotels, 21 2-star hotels, and 29 1-star hotels.
- There are 332 other lodging facilities which include hotel apartments in the UAE, according to the Federal Competitiveness & Statistics Authority report. These hotel apartments have different classes and are distributed as follows among the classes: 90 Deluxe, 56 Superior, and 186 Standard Class hotel apartments.
RESEARCH STRATEGY
We first searched for readily available data on the number of hospitality outlets broken down into quick-service restaurants, fast food restaurants, restaurants, catering & food delivery, hotels, other lodging facilities, and cafes & bars in the UAE, by searching through UAE government websites (such as the UAE Government Portal, UAE Ministry of Economy, and UAE Federal Competitiveness and Statistics Authority, among others). We found a report from the UAE Federal Competitiveness and Statistics Authority which provided us with information on the UAE's total number of hotels and other lodging facilities. Other than that, we only found annual reports, economic reports, and consumer price index reports of restaurants, cafes and other outlets from the food and beverage sector, which were not relevant to address the request.
We then changed our strategy by triangulating the requested information. We searched for information that we could use to triangulate the requested information, such as the total number of food and beverage sector outlets or industry growth rates. We used industry reports on the UAE from international and global organizations (such as the USDA Foreign Agricultural Services — Global Agricultural Information Network (GAIN), Glee Hospitality, Euromonitor International, KPMG, European Union, and Agriculture and Agri-Food Canada, among others), statistics databases (such as Statista); market reports (from sources such as Market Research), and business media sources (such as Gulf Business, Arabian Business, Caterer Middle East, and Khaleej Times, among others). We found information on the total number of food and beverage outlets for 2017 and the projected number of outlets for 2020, from Khaleej Times. We also found a "Foodservice Profile" report of the United Arab Emirates by Agriculture and Agri-Food Canada, which contains historical information on the total number of food and beverage outlets and on individual sectors such as cafe's/bars, full-service restaurants, quick-service restaurants, and street stalls/kiosks. Furthermore, we found catering & food delivery information from an Euromonitor International paywalled report. The paywalled reports from Euromonitor further contain information on full-service restaurants, fast food, cafe's/bars, street stalls/kiosks, lodging, contract foodservice, and 100% home delivery/takeaway, and should contain the total number of outlets, according to the Table of Contents. We combined the information and data found from these two sources and calculated the total number of food and beverage outlets, cafe's/bars, full-service restaurants, quick-service restaurants, and street stalls/kiosks outlets in the UAE in 2018.
Based on the Agriculture and Agri-Food Canada report and the KPMG report we found that quick-service restaurants are more popularly known as fast food restaurants. The data for fast food restaurants from the Agriculture and Agri-Food Canada report includes KFC and McDonald's, which can be considered examples of quick-service restaurants. Therefore, we used data on fast food restaurants for quick service restaurants.
For the "fast food restaurant" sector, we used the data on "street stalls/kiosks" from the Agriculture and Agri-Food Canada report, which are included in the definition of fast food restaurants.
We further assumed that the "Full-Service Restaurant" category best fits the category "restaurant" and used information from this category from the Agriculture and Agri-Food Canada report.
CALCULATIONS:
Projected Growth Rate (CAGR) of UAE Food & Beverage Outlets from 2017-2020:
Number of food & beverage outlets in 2017 = Initial Value = 16,234; Projected food & beverage outlets in 2020 = Final Value = 19,053; Total Number of Years/Period = 2020-2017 = 3 years/period Growth Rate (CAGR) = (Final Value / Initial Value) ^ (1/Years) - 1 = (19,053/16,234) ^ (1/3) - 1 = 5.48%
Growth Rate (CAGR) of UAE F&B Outlets from 2013-2017:
Number of food & beverage outlets in 2017 = Final Value = 16,234; Number of food & Beverage outlets in 2013 = Initial Value = 5,818; Total Number of Years/Period = 2017-2013 = 4 years/period;
Growth Rate (CAGR) = (Final Value/Initial Value) ^ (1/Years) - 1 = (16,234/5,818) ^ (1/4) - 1 = 29.24%
Total F&B Outlets in the United Arab Emirates, 2018:
To calculate the total number of food and beverage outlets in the UAE, we used the growth rate of 5.48%.
Projected CAGR from 2017-2020 = 5.48%;
Number of food & beverage outlets in 2017 = Initial Value = 16,234; Number of Periods (Years) = t = 2018–2017 = 1 year/period
Total number of food & beverage outlets in the UAE = Final Value = (Initial Value) (1 + CAGR) ^t = (16,234) (1+5.48%) ^1 = 17,123.62 = 17,124
Quick-Service Restaurants, Total Number of Outlets in 2018:
To calculate the total number of outlets of quick-service/fast food restaurants in the UAE for the year 2018, we used the growth rate of 5.48% for the years 2017-2018 and the growth rate of 29.24% for the years 2013-2017.
Total number of quick-service/fast food restaurant outlets in 2013 = 2,325; CAGR 2017-2018 = 5.48%;
CAGR 2013-2017 = 29.24%;
Number of periods or years (2013-2017) = t1 = 2017 – 2013 = 4;
Number of period or years (2017-2018) = t2 = 2018-2017 = 1;
Total number of QSR/Fast Food Restaurant outlets in 2017 = (Final Value) = (Initial Value) (1 + CAGR) ^t1 = (2,325) (1+29.24%) ^4 = 6,486.50 = 6,487 outlets.
Total Number of QSR/Fast Food Restaurant outlets in 2018 = Final Value = (Initial Value) (1 + CAGR) ^t2 =(6,487) (1+5.48%) ^1 = 6,842.49 = 6,843
Fast Food (Street Stalls/Kiosks), Total Number of Outlets in 2018:
To calculate the total number of outlets of fast food (street stalls/kiosks) outlets in the UAE for the year 2018, we used the growth rate of 5.48% for the years 2017-2018 and the growth rate of 29.24% for the years 2013-2017.
Total number of fast food (street stalls/kiosks) outlets = 113; CAGR 2017-2018 = 5.48%;
CAGR 2013-2017 = 29.24%;
Number of periods or years (2013-2017) = t1 = 2017 – 2013 = 4;
Number of period or years (2017-2018) = t2 = 2018-2017 = 1;
Total number of fast food (street stalls/kiosks) outlets in 2017 = Final Value = (Initial Value) (1 + CAGR) ^t1 = (113) (1+29.24%) ^4 = 315 outlets.
Total number of fast food (street stalls/kiosks) outlets in 2018 (Final Value) = (Initial Value) (1 + CAGR) ^t2 =(315) (1+5.48%) ^1 = 332 outlets.
Full-Service Restaurants
To calculate the total number of outlets of fast food (street stalls/kiosks) outlets in the UAE for the year 2018, we used the growth rate of 5.48% for the years 2017-2018 and the growth rate of 29.24% for the years 2013-2017.
Total number of full-service restaurant outlets in 2013 = 1,615; CAGR 2017-2018 = 5.48%;
CAGR 2013-2017 = 29.24%;
Number of periods or years (2013-2017) = t1 = 2017 – 2013 = 4;
Number of period or years (2017-2018) = t2 = 2018-2017 = 1;
Total number of full-service restaurant outlets in 2017 = Final Value = (Initial Value) (1 + CAGR) ^t1 = (1,615) (1+29.24%) ^4 = 4,505.68 = 4,506 outlets.
Total number of full-service restaurant outlets in 2018 = Final Value = (Initial Value) (1 + CAGR) ^t2 =(4,506) (1+5.48%) ^1 = 4,752.93 = 4,753 outlets
Bars & Cafes
To calculate the total number of outlets of Bars & Cafes in the UAE for the year 2018, we used the growth rate of 5.48% for the years 2017-2018 and the growth rate of 29.24% for the years 2013-2017.
Total number of bars & cafe outlets in 2013 = 1,631; CAGR 2017-2018 = 5.48%;
CAGR 2013-2017 = 29.24%;
Number of periods or years (2013-2017) = t1 = 2017 – 2013 = 4;
Number of period or years (2017-2018) = t2 = 2018-2017 = 1;
Total number of Bars & Cafe outlets in 2017 = Final Value = (Initial Value) (1 + CAGR) ^t1 = (1,631) (1+29.24%) ^4 = 4,550.32 = 4,550 outlets.
Total number of bars & cafe outlets in 2018 = Final Value = (Initial Value) (1 + CAGR) ^t2 =(4,550) (1+5.48%) ^1 = 4,799.34 = 4,799 outlets.