The new economics of F&B in Oman

For many business leaders, the focus has shifted to strengthening the fundamentals for a new era of operations, rather than eyeing growth alone. With insights from industry experts, we explore the new economic model taking shape.

Listening to customers

Across the sultanate, F&B businesses are taking a closer look at every aspect of their operations as they adapt to a fast-changing dining landscape.

Today’s customers are curious and keen to discover something new. Many also have high expectations, with a clear idea of what they hope to find on menus and at restaurants. Recognizing this, Oman’s industry players are paying close attention to those demands, while resisting the temptation to chase fleeting social media trends.

“You really have to understand the customers you have and the market you’re in before you make decisions,” said Mireille Aoun, founder of The Kitchen Lab and The Gluten Free Lab. “Listening to what the customer wants and what they ask for is more important than following a certain trend on TikTok or Instagram.”

Consistency counts

Business leaders have noticed that diners are also becoming more value-conscious and selective with their ordering. This, in turn, is heightening the need for consistent quality in both food and service.

“If that same customer comes back six months later and doesn’t get the same service, you have lost a client,” warned Thierry Quintric, director of food and beverage at Radisson Collection Muscat, Hormuz Grand.

Streamlined menus

One way operators are achieving that consistency is by streamlining their menus. Doing so brings multiple benefits, starting with a clearer offer that customers can navigate with ease, according to Issa Bin Saleh Al Aghbari, founder and CEO of Seven Fries.

“When you have 200 items, the customer doesn’t know what to choose,” he said.

Cutting costs, protecting margins

Behind these changes lies a new economic model. Margins, not just sales, are increasingly seen as a key measure of success.

Cost, industry players broadly agree, is ultimately a decisive factor. And reducing waste is proving an effective way of lowering it. Monitoring tools are revealing when food is being overproduced, allowing kitchens to scale back preparation ahead of closing time, as Quintric explained.

“It’s giving us information that, without that system, we would not be able to look into,” he said.

Detailed recipe costing is equally important. With ingredient prices constantly shifting, F&B businesses are scrutinizing dishes to ensure they remain profitable.

“One ingredient in one dish can make you lose money without you knowing where it’s coming from,” said Karim Abd El Razek, co-founder and CEO of Zad International and founder and CEO of Pure Planet.

Foundations for growth

Encouragingly, business leaders see a clear path to growth built on the right fundamentals. These include a proven concept, a strong team, a specific point of difference and a loyal customer base.

Getting the order right is key, with the core offer coming first, according to Aoun. “Keep it simple, perfect it and expand,” she said.

When it comes to scaling up, whether through new sites, franchising or investment, those firm foundations prove crucial.

Robust systems, in particular, ensure the same standards in every location, Abd El Razek noted. “Once you have a strong system and a clear analysis of the market you are entering, your risk will be minimized,” he said.

Ultimately, as Oman’s F&B scene evolves, growth may extend a brand’s reach. Sound economics, however, are needed for longer-term success.