The UAE Café and Coffee Chain Market boasts a diverse landscape, encompassing both renowned chain outlets and standalone specialty cafes. UAE has witnessed rise of multiple global and domestic cafés and restaurants over the years.
- UAE Cafe Industry Leadership: Starbucks continues to lead the UAE cafe market with the highest market share and an extensive network of 285 outlets, closely followed by Costa Coffee with 144 outlets.
- Acai Bowl Industry Success: Acai bowl vendors are employing clever promotional tactics, offering reward points, loyalty programs, and enticing discounts to maintain their stronghold in the market. Acai bowl orders account for an impressive 70% of all orders in an average acai chain.
- Food Delivery Platforms Impact: Major food delivery platforms like Talabat, Deliveroo, Careem Now, Noon Food, and East Easy have transformed the UAE cafe and coffee chain market, offering diverse restaurant choices and cuisines with convenient doorstep delivery options.
- Talabat’s Dominance: Talabat emerges as a dominant player in the food delivery landscape with over 10+ million downloads, catering to customers across major cities and regions in the UAE.
- Careem Now’s User Base: Careem Now has established a strong user base with more than 12+ million downloads, with 22% of its users also utilizing Deliveroo and 33% opting for Talabat, showcasing varied preferences among its customer base.
The UAE Café and Coffee Chain Market present a diverse landscape, comprising renowned chain outlets like Starbucks, Costa Coffee, Saddle, and Nova. Alongside these, standalone specialty cafes such as Just Fresh, The Juicery, and Common Ground offer health-based smoothies and beverages. Additionally, acai bowls and frozen yogurt lovers can savor delicious treats at Oak berry, Acai Spot, and Pinkberry, catering to diverse tastes in this thriving industry. The UAE Cafe and coffee chain market is spearheaded by over 700+ outlets.
1. Starbucks Takes the Throne in UAE Cafe Industry
Starbucks stands tall as the UAE cafe industry leader, boasting the highest market share among all cafes. With an impressive network of 285 outlets across the country, Starbucks has solidified its dominance. Following closely is Costa Coffee, with 144 outlets. The evident preference for coffee chains in the UAE creates a promising window of opportunity for aspiring players to enter the market and capitalize on this thriving industry. In 2022, The Alshaya Group, headquartered in Kuwait, celebrates a significant milestone as it inaugurates its 1000th Starbucks store in the MENA region, located in Dubai, UAE.
2. Acai Bowl Vendors Score Big with Clever Promotional Tactics!
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Forging partnerships with corporates in the UAE through Rewards and Recognition (R&R) programs, featuring discounts, digital gift cards, and loyalty memberships, proves as an effective strategy to reach a vast audience in one go. Acai Bowl orders constitute an impressive 70% of the total orders in an average acai chain.
Players like Project Acai, Vitality Bowls etc. all have their loyalty programs where they offer reward points to customers, Starbucks has also launched its card on which money can be loaded to make purchases.
Oak berry offers 20% off on purchase of 2 buckets or a free complimentary bucket. Pinkberry provides bundle offers of 4 small cups or mini cups of frozen yoghurt along with buy 1 get 1 offer.
3. How Food Delivery Platforms Impact UAE Café and Coffee Chains!
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In the UAE, the major food delivery landscape is dominated by prominent platforms like Talabat, Deliveroo, Careem Now, Noon Food, and East Easy. These industry giants have revolutionized the way people experience dining, offering a wide range of restaurant choices and cuisines delivered right to their doorstep.
Talabat is one of the leading food delivery platforms in the UAE, offering a vast selection of restaurants and cuisines for customers to choose from. It has a strong presence in major cities and regions, making it a go-to option for food delivery services. In case of Talabat, only 18% of the users use some other brand. Talabat has huge downloads over 10+ million.
Careem Now, part of the Careem ride-hailing app, has also ventured into the food delivery space in the UAE. It offers a seamless integration with its existing app, making it a convenient choice for users.
Careem Now, which was established in 2012, has garnered a robust user base with over 12+ million downloads. Among its users, 22% also utilize Deliveroo for their food delivery needs, while 33% opt for Talabat, showcasing a diverse range of preferences among its customer base.
In conclusion, the UAE Cafe and Coffee Chain Market showcase a dynamic and diverse landscape, driven by renowned chain outlets like Starbucks and Costa Coffee, as well as standalone specialty cafes catering to health-based and indulgent preferences. The market’s growth is further bolstered by the strategic adoption of offline promotions, partnerships with corporates, and the influence of food delivery platforms, providing a thriving culinary experience for customers across the region.
According to Ken Research, the market’s steady growth, with an average CAGR of 7% over the past three years, attracts investors and new players. Players that adapt to changing trends, innovate their offerings, and leverage technology will likely secure a competitive edge and capitalize on the opportunities presented in this dynamic market. Careem Now’s extensive user base of 12 million users indicates its potential for further expansion.
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