BRANDING

FOOD
 & BEVERAGE
THE MAIN COURSE

December 2020
EXECUTIVE
SUMMARY
As much as we would like to go into denial mode
and speak about the industry in terms of trends and
outlook, and as if all is fine, we find ourselves
ethically compelled to address the one imminent
threat that promises to reshape the sector from the
bottom up, and force it to rethink all its moves,
forecasts and business plans.
It inevitably is about reinventing the wheel. While
early on, digital and motorized delivery channels
were about expanding reach and maximizing profit,
they have become the outlets’ sole source of
decent income during the COVID-19 pandemic.
The food and beverage sector is one of the most
profitable in the region. A 2017 report estimated
that the industry in the GCC will reach a value of 34
Billion US dollars. But that was 2017. The
Coronavirus outbreak had other plans. The silver
lining is that, while innovation would have been
initiated anyways, the pandemic acted as a catalyst.
BRANDING F&B
Just a few months ago, trends were more location-
based. Immersive experiences, cross-continental
cuisines and superfoods were setting the pace.
“Eatertainment”, multi-sensory dining and food
trucks were inching in as the new hypes. With the
emergence of the digital influence, customers
became more aware of mobile ordering, delivery
chefs, and foodie bloggers. The industry was
thriving to create an equilibrium between going-out
and staying-in and manage footfall on one end
while satisfying couch potatoes on the other.
Again, that was pre-COVID-19. As of now, most of
what was hypothesized suddenly turned into reality.
Optimistically, these are great times where putting
ideas to test might work better than anticipated.
“Sanitization” and “contactless” are now buzzwords
and a part of our daily life.
Here’s the question: How will the F&B sector build
enough resilience to dodge the most lethal bullet it
faced since the 2008 economic meltdown? 
2
THE THOUGHT
TRIGGERS
THE DIP
Less than 2 months after the
COVID-19 hit, the industry
woke up to a dip of 16% dine-
in revenues as of February,
followed by 52% in March.
Restaurants had forecasted
a 76% drop by April 2020 de-
spite Dubai allowing them
to re-open at 30% capacity.
The trend seemed far from
its peak by then and the fear
of a mass collapse was
looming. This was seen, as
a catastrophe with f a r -
reaching repercussions on
both business and human
resources.
BRANDING F&B
EVERYONE WAS
HARD HIT
In the GCC, the F&B sector is
closely tied to the hospitality
industry and constitutes 30%
of the region’s economy. It
relies heavily on tourism with
around 20% of revenues gen-
erated by incoming travelers.
With the severe travel restric-
tions in place, the sector took
a hard hit. While quick-service
and fast-food outlets have
realigned operations to focus
on delivery and takeaway, tra-
ditional dine-ins struggled to
develop a similar business
model that can start oper-
ating in the earliest delays.
TRIALS
TO HABITS
Despite the lax restrictions,
surveys show that 67% of US
consumers will be overly
cautious about going out to
restaurants once they reopen.
12% claim they may never go
back to dining out at all. This
move will make the industry
rethink its business model from
all aspects. Similarly, in the UK,
a study revealed that 60% of
those who ordered delivery for
the first time, or more often
than usual, stated that they
would continue their ordering
frequency.
3
 GOING ON A BUSINESS DIET
At a time where millions of people, more than
ever, are relying on delivery services for their
every necessity, it seemed strange that Uber
Eats has downsized. The tough economic
climate has shed light on the issues of the food
aggregator business model, whereby it often
costs more to run their operations than they
actually make. Uber exited eight markets
already. It is now being widely rumored that
Deliveroo, one of the most hotly anticipated
IPOs of 2020 prior to the pandemic, has never
made any money so far.

CONTACTLESS, PAPERLESS, AND SAFER

Payments will be contactless and easily split among a group. One large hospitality
organization developing hotels and restaurants stated that they are working
quickly to put in place contactless payments and QR code menus to minimize
any possibility of contagion while dining in. While similar solutions might seem
rudimentary at first, over time, they will become permanent features. Technology
will improve to speed up bookings, wait times and ordering. One day, the look and
feel and ease of use of a menu on your mobile phone will rival that of reading from
a paper menu.

STAYING IN IS THE
NEW GOING OUT
Recently, Deliveroo released data showing that
Friday and Saturday night orders went up by
36% across Europe compared with pre-
lockdown numbers. They predict that the rise
will continue, at least for the near term. On the
bright side, and while staying home affects foot-
traffic negatively, it could also create amazing
opportunities. With dining at home becoming
the new going out, restaurants and hustling to
explore new means to adapt and deliver a
seamless experience, completely realizing that
their livelihood depends on it.

BRANDING F&B 4
THE
TRENDS
COOKING A NEW
GUEST EXPERIENCE
It is undeniable that restaurants deciding to offer
indoor dining should adhere to the latest guidelines,
but that’s not enough. It will also be crucial to work
hard on reducing the anxiety of patrons. The top
anxiety-reducing interventions are increased
sanitization, particularly disinfecting dining
surfaces between customers; limited occupancy to
maintain physical distancing; and requiring
employees to wear personal protective equipment.
While it is crucial to implement these measures,
restaurants need to communicate them broadly
and make them highly visible to their customers.
EXPER
IENCE
BRANDING F&B
DELIVERING TO THE
CUSTOMER’S TASTE
While the main priority is to optimize the business
model to face an economic downturn, it is important
to do it through the lens of customer experience.
Refining carryout and drive-through operations, for
instance, can be done by reevaluating staffing,
traffic flow, food temperature, and food packaging.
At the same time, making the delivery business
profitable can be done by negotiating longer-term
agreements with third-party delivery companies,
instead of lowering quality. Leveraging “ghost”
kitchens, and developing in-house delivery
capabilities in denser markets can help build more
sustainable business formats.
5
DISCOVERING
THE CHEF IN YOU
While some outlets chose only dishes that
would travel well, or adjusted recipes to account
for the new parameters, others asked their
customers to become their own chefs. Although
it might seem opposed to the point of ordering
delivery – to have the food arrive prepared by
professionals and ready to eat – meal kits have
been proving popular and providing F&B outlets
with another new source of income. Some
generated a new experience, asking for the
customers to apply just the finishing touches to
pre-prepared meals, while others, turn it into a
full cooking experience.
BRANDING F&B
COVID-19 OR NOT, HEALTHY
REMAINS A PRIORITY
Healthy food is definitely not a new trend and it
remained a major one without being deterred by
the COVID-19 pandemic panic. 2019 was hailed
as the year of clean, natural, organic eating, free
from anything that can obstruct your vital or-
gans and arteries. The war on additives and
pesticides is still on. It is gaining momentum
and will probably remain alive and well for years
to come. As the world’s eating habits are shift-
ing toward a more sustainable way of living,
outlets will need to reconcile between their of-
ferings, delivery and helping patrons maintain a
healthy life.
6
KITCHEN,
THE FRIENDLY
GHOST
WHAT’S IN A NAME?
Ghost kitchens are more real today
than ever. Their benefits are
numerous for dining outlets. For
one, restaurants can drastically cut
their operating costs by having
fewer employees and less square
footage. Without having to wash
serving dishes or set tables,
restaurants can streamline their
operations and focus on innovation
and creating quality menu items.
Ghost kitchens also provide
opportunities for newcomers trying
to make it in the notoriously risky
industry. The initial operating
investment in a ghost kitchen is
much smaller than opening a full
dine-in restaurant, thus avoiding
more establishments from taking
an unrecoverable plunge.
BRANDING F&B
BISTRONOMY
ANYONE?
The UAE, as well as other GCC
destinations, became hotspots for
both local and international chefs,
including rising and established stars
who have successfully opened their
doors in the Middle East. Customers
are looking for gastronomy food but
without the attached hassles of
traditional fine dining. They want to
be able to enjoy a casual atmosphere
and dress code while feasting on
delectable treats. ‘Bistronomy’ is
born. Merging the concepts of bistro
and gastronomy, the trend translates
into Mediterranean casual fine
dining.
Molecule restaurant and lounge in
Dubai, together with Baron in Beirut,
have been the trend’s flag-bearers in
recent years.
7
WHAT’S ON THE MENU?
Menus have been undergoing drastic changes.
Finding the right balance between specials and
limited-time offers on one end, and high-margin
items on the other. At the center of all that, re-
architecting a new menu design, content, and
pricing need to focus on the optimal daypart
mix and occasions. There is a psychology
underlying menu design, one that menu
designers were always aware of, and that has SEATING ARRANGEMENT
proven to be vital to the outlet’s success. A well-
structured menu will make you order what the Although the COVID-19 pandemic is undeniably
outlets want you to order while making you a major contributor, rethinking restaurant lay-
think you made the choice. out, flow, staffing, and standard operating pro-
cedures to align with the new off-premises
models, and customer experience remains the
way to go. Reviewing the outlet’s real-estate
strategy in light of major shifts in foot traffic
and occupancy costs can help optimize financ-
es. It can also generate a more relaxing and
convivial mood in an era where footfall is de-
grading, and choices are increasing. It all boils
down to a ratio of safety and occupancy that
can optimize revenue.

BRANDING F&B 8
THE
TAKEOUTS
NEW NORMAL,
NEW HABITS
WHAT?
When it comes to food, old habits do somehow die.
The industry is now defined by a post-COVID-19
SO?
F&B outlets need to blend with the customers’
timeline. Old trends do not apply anymore. Put your
worries rather than simply reassuring them. Words
mask on, wear your gloves, take your hand sanitizer
don’t count anymore, and patrons need to see and
with you, make sure the table and seats are clean,
feel the change. It is believed that the new habits
versus check how cool the place is and what’s on
are here to stay, for good, not only because they
the menu.
make us feel safe, but because we started to like
them.

How aware are outlets about the

influence a brand can have on
steering customers’ positive
thoughts and feelings and
building trust?

How will establishments

reassure their patrons through
actions rather than words?

BRANDING F&B 9
WE DELIVER!
WHAT?
We reached a point where delivering on your
promises is more sought after than delivering
food. Even outlets that are well into delivery, and
well before the pandemic, are struggling to
understand and accommodate the new rules of
the delivery game. A surge in demand created the
adverse effect of higher operating costs, more
intricate management, and a struggle to fiercely
compete on new turf. The mechanics of delivery
have changed, and are not about the average late-
night burger anymore.

SO?
Understanding the shift in the concept of delivery
is paramount. While the delivery man, the moped,
and the branded backpack are still there, the
content, expectations, and timing have
How will you project your
drastically evolved. And while customers are brand promise through
willing to explore new possibilities, they would
love to stick to the brands they know and trust your delivery guy? Will your
and see how they would fare. As for those
newcomers, selling their services in a
brand promise still work?
contactless, faceless, and “locationless” arena,
understanding that it will be more about their
purpose and innovation as a brand, rather than If not, what will you need to
the food they deliver, will be the key to success.  change it into, and why?

How do you plan on

competing now in a market
that was relatively safe and
profitable?

BRANDING F&B 10
 AT HOME FOR A
5 STARS DINNER
WHAT?
As new dining habits emerge and establish a new
If your brand has what it normal forced upon the industry, the - once thought
takes, how do you plan to temporary - customers expectations’ shift is turning
into a fait accompli. Where delivery was looked
engineer and make it work upon as the fast solution to the “no time to cook” or
“too tired to go out”, it has now shifted to a new
in and out? challenging level. Patrons want their favorite dine-in
outlets to deliver the same experience, at home.
And everyone is scrambling trying to find a way to
How will you rethink your “teleport” the food and mood from the restaurant
and into the home.
brand purpose to offer a
five stars experience no SO?
Owning a well-established brand in the F&B sector
matter where the customer bestows the power to replicate an entire experience
is located? off-location. Of course, the location and the
experience it provides are the most powerful brand
assets, but when you can’t bring them to you, a solid
brand will take you to them, fully, and that includes
the entire five stars experience.

BRANDING F&B 11
LOCATION, LOCATION,
EXPERIENCE
WHAT?
Safety, cleanliness, soiled menus, reusable cutlery,
tight seating, all have created a mass paranoia. The
famous “location, location, location” adage is now
an over-statement. Customers are simply too
worried to sit and eat in public places, surrounded
by strangers without masks. Although many outlets
have done their best to re-establish trust, many
patrons are still adamant about the effectiveness of
these steps.
SO?
Brands are about experience. Understanding
the potential an experience can harness, means
understanding how to turn pain points into
positive moments. This is when safety and
social distancing become more about serenity
and less crowded, relaxed moods. This is also
when a QR code menu becomes about speed
and convenience, and so on. Having said that,
only brands with a purpose and the right culture
can find solutions for every situation, and even
take things to the next level. Innovation plays a
very important role in activating a brand. 

How do you plan to bring How do you plan to build

back your location to life or re-engineer a brand that
through your brand, before mitigates your risks?
your menu? 

How can you revive or create

an immersive experience
that invites customers to
forget the risks and trust
the brand?

BRANDING F&B 12
TRUST
THE GHOST
KITCHEN
WHAT
With the exponential rise of food delivery orders
starting a few years ago, restaurants were looking
for means to meet demand while maintaining or
even raising quality. Ghost Kitchens came to the
rescue.

Also called Cloud Kitchens, the outfits managed to

keep up and even exceed the demand, hence helping
F&B outlets generate more profits and Woden their
geography beyond their physical location. Post
COVID-19, Ghost Kitchens became a bliss.
Skyrocketing demand forced many outlets to resort
to those kitchens for help. It is now working so well
that even venture capitalists are salivating over
future prospects.
SO?
For many outlets, a Ghost Kitchen is a god-sent gift.
From a brand perspective, and if well handled, it
constitutes a major boost by helping vehicle your
brand assets out-of-location and into every home,
while also maintaining the quality of food and
adapting packaging to the needs of delivery.
Be it your own Ghost Kitchen or outsourced, it is the
ultimate solution in a post-COVID-19 era where
delivery can compensate for on-location social
distancing or lack of patrons. It might surpass all
expectations.

Are you ready as a brand How do you foresee keeping

to outsource business up with the rise in delivery
to a Ghost Kitchen? demand while maintaining
quality and taking advantage
Can you guarantee brand of the market opening?
consistency in terms of
image and quality?

BRANDING F&B 13
EXPERIENCE
IS STILL ON
THE MENU
For us at Brand Lounge, brands are built around
a four-dimensional eco-system: Purpose,
Innovation, Culture, and Image. They all work in
tandem to generate the brand experience.
When it comes to food and beverage,
experience is everything.
An establishment’s success depends on what
is commonly known as the “formula”. The
outlet’s purpose, its DNA, plays a paramount
role in determining its success. Where
innovation defines a business model that
entices patrons to choose an outlet over
another, culture will guarantee a friendly and
professional on-location and off-location
interaction. Finally, image is designed to deliver
a consistent package of all the dimensions,
hence creating what every food and beverage
outlet strives to achieve, differentiation.
BRANDING F&B
More than ever before, building differentiation
has become the sole competitive advantage in
an industry so packed that choices are
becoming hard to make. Delivering on
promises and food safety while maintaining or
upgrading the experience are the key
differentiators that will ensure customer
acquisition. These are great times for those
willing to once more wear the pioneer hat, and
take the bull by the horns.
While COVID-19 has imposed harsh realities, it
has also triggered a chain reaction of
innovations, and people rethinking their
business after years of stalemate.
The post-pandemic era allowed for a bird’s eye
view of the business and made everyone realize
that this is the perfect time for revival and re-
architecting brands and concepts.
Brand experience is not dead. It is in fact
gathering momentum, striving to offer better
value. Value is an inseparable part of a brand,
and a brand is about perception. Perception is
the trigger of experience. So, no matter how we
look at it, food and beverage brands have a lot
on their plates to ponder and customers will
always have a mouthful of options.
The gap to bridge lies not only within the quality
of the food but also in how powerful and
immersive is the brand experience surrounding
its consumption.
14
SOURCES
https://bit.ly/302rBpb https://bit.ly/2OAS4oN
https://bit.ly/2Ojm8VL https://bit.ly/3fJ4dnv
https://bit.ly/2Coivv5 https://bit.ly/2WFms5LSO?
https://bit.ly/3gx7DJU https://bit.ly/2P746qc
https://bit.ly/2Onc5yJ https://on.ft.com/3hMbi7s
https://bit.ly/2WrH95d https://mck.co/30Sfdsu
https://bit.ly/2OJPixf https://bit.ly/3hMYJbO
 https://bit.ly/2OFBOTm https://bit.ly/3f7y8ok

BRANDING F&B 15
ABOUT US

We are Brand Lounge, an award-winning regional

branding consultancy with15 years of global experience.
We are the designated partner of ‘Trout & Partners’ in the
Middle East & Africa.

We maximize brands’ value through uncovering their

Point of Differentiation. We do it through our Brand
Differentiation Platform that tackles the 4 main
dimensions of the brand: Purpose, Innovation, Culture
and Image.

We would love to hear from you. Give us a shout at

business@brandloungeme.com
brandloungeme.com

HASAN FADLALLAH MOHAMAD BADR IBRAHIM LAHOUD

Founder & CEO COO & Head of Strategy Business Director &
Head of Growth

16
LET’S TALK
Great ideas and interesting
challenges are always welcome at
Brand Lounge. Contact us, or drop-
in today to uncover your point of
differentiation.

Brand Lounge FZ LLC

Brand Consultancy
Dubai Design District, Bldg 6, 209B
P.O. Box 282379 Dubai, UAE
t +971 4 434 7152
f +971 4 432 7180
business@brandloungeme.com
brandloungeme.com