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Rising costs take a bite out of profits in region's F&B market

Growth of dining out market is set to continue, but rising food, lease and labor costs make running a profitable venture a challenge. There are many forces driving the continual evolution of the food and beverage (F&B) market in the Gulf Cooperation Council (GCC). As consumer eating habits have changed, eating out on a regular basis, rather than just for special occasions, has become the norm. Increasingly, business interactions are also being conducted in dining venues.

Younger GCC nationals have a strong inclination towards a more western lifestyle. Food remains the largest segment of consumer expenditure in the region and will continue its growth trajectory for the next five years. MENA Research Partners have predicted that consumer spending in the GCC food sector will grow at an annual rate of 7.1 percent to reach $196 billion in 2021.


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