Businesses are also required to pay registration fees to attend the event, according to Jamal Wick, co-founder of Bespoke Trailers
Food & beverage outlets participating at Formula 1 Abu Dhabi Grand Prix must pay a revenue share of up to 40% to operators, according to the co-founder of Bespoke Trailers, a UAE-based mobile unit manufacturer and retailer.
Speaking to Arabian Business, Jamal Wick said F&B brands are also required to pay registration frees in order to attend the event.
“Formula 1 has a catering company which runs all F&B at the event. It hires operators which are mandated by F1. They do a revenue share with the operators, so they take a big junk of their sales, between 20%-40%. On top of that, you have to pay for registration fees to be able to attend F1,” he said.
Wick founded Bespoke Trailers in 2016 after struggling to attract enough funding for a brick and mortar business. The lower capital investment required to start a mobile unit allowed him to establish eight food trucks in Dubai including meat concept Sir Loin & Sons and Cuban eatery Cubano.
He attended F1 Abu Dhabi with six food trucks in 2017, with only half of his brands making a significant profit.
“Three of our brands did extremely well and the other 3 did okay. If you do okay, then you won’t make much money or any money. If you do well, you’ll do good money,” he said.
Wick opted out of attending F1 in the capital last year due to a number of reasons, including various restrictions placed on F&B operators during the event. However, he recommends the event to brands looking for exposure.
Restaurants and nightclubs operating in the vicinity of F1 Abu Dhabi can earn up to $1.6m (AED6 million) during the three-day race weekend, partner at 4-Front Facilities, Mansour Bin Jabr, told Arabian Business last year.
The Dubai-based hospitality firm behind concepts such as Mr Miyagi’s, Starz N Bars and The Scene.
While Wick revealed that the average cost of setting up a food truck in Dubai is between $9,530 (AED35,000) to $36,758 (AED135,000), and rent space costs between $4,000 (AED15,000) to $6,800 (AED25,000) a month, the costs of running a restaurant or nightclub during the race weekend is unclear.