French player makes strong

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Nicolas Talon

Hippopotamus is a brand synonymous with France, with 90 restaurants present in the country and 20 more openings lined up by the end of this year.

Nicolas Talon, operations manager, Alshamsi Holdings, says the brand now controls 24% of the market share for steakhouses in France, and he now expects huge potential in this region after negotiations with investors in Qatar and Saudi Arabia.

Although the inaugural Hippopotamus opened just four months ago, spaces have been secured for more at Dubai's Festival City and Abu Dhabi, and the brand will be opened up to franchising, in a bid to spur interest beyond its launch pad.

"Dubai offers the most exposure in the UAE and is the right place to introduce a concept as people are working long hours and just want to be entertained. However, it is becoming more difficult to find prime locations," Talon says.

Construction at Dubai Marina has hindered sales for the newcomer, however Talon is adamant that new services including water taxis and golf cars will result in an influx of diners from the neighbouring towers at the development.

"This first location offers a lot of promise as it is set become a real destination like Knowledge Village, Internet City, and Jumeirah Residence nearby," he says.

Availability of space for restaurant development remains an obstacle however, he says, with most premises offering 100-150m² despite the need for 90m² for kitchen operations alone.

The brand has received some alterations to suit the local market, Talon explains, with changes to the chain's typical menu and restaurant design to entice Emirati diners.

"If you have an international brand such as Starbucks then it is simply copy and paste, yet we are a very French concept and although we have to follow the guidelines, as the master franchisee we are allowed to be quite flexible."

Talon has more than ten years of experience in the catering industry in cities including Paris to London, and has been working in Dubai for more than four years. He describes the interior of the new restaurant as warm and cosy with a friendly atmosphere, yet points to the increasing competition
in the market.

"Diners in Dubai are quite selective, and there are currently three casual steakhouses in the city so we try to make our profits from volumes rather than high prices and high margins."

Food and beverage offerings at five-star properties across the emirate currently control a huge share of the market, according to Talon, with 90% of steakhouses positioned in hotels. However, he says the product has been upgraded and ranks the same as these in terms of quality.

For the new opening, Talon says the main challenges were liasing with contractors and designers, while the subsequent concentration has been building relationships with reliable suppliers.

"There is such huge demand here for supplies in this country due to the economic boom, and if these suppliers lose one customer it is not a huge problem for them so developing a long term relationship with good companies takes a lot of time," he comments.

As a smaller operator in its first stage of growth, Hippopotamus has encountered difficulties with securing some produce due to small orders.

"The volume of purchasing is not very high, so suppliers would rather target hotel groups, another challenge has been receiving stock on time."

Deliveries have also emerged as a distinct growth area for the brand in Dubai, with the service now accounting for 50% of sales.

Talon reveals that in order to tap the potential for health conscious eateries and respond to the vast coverage of obesity figures in the UAE, the company plans to develop its own healthy concept.

"There is definitely a gap for fast casual concepts, and particularly Asian and healthy options, and the population of Dubai is keen on new experiences and trendy places at prime locations," he adds.

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