Arabic Coffee Shop in the UAE

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Table of Contents

Introduction
Review of Literature
Analysis
Conclusion and Recommendations
References

Introduction

The business environment of the 21^st century is characterized by its competitive landscape. In these circumstances, there is little or no room for mistakes, and each new idea is to be thoroughly considered. Preliminary research allows entrepreneurs to evaluate the viability and feasibility of their proposal, drafting effective roadmaps for relevant, profitable projects. The United Arab Emirates has been in a state of steady, positive economic development over the past decades, making this country a suitable environment for promising start-ups. An authentic Arabic coffee shop offering local cultural experience combined with healthy snacks and organic coffee of high quality is one of such projects.

Its design is expected to correspond to the requirements of the time, and, in the 2010s, the sustainability of a business is a major enabler of success. Accordingly, the coffee place should rely on organic supplies and recycled materials, which, once combined with the cultural and culinary aspects, will assert its competitive advantage. The purpose of this report is to draft a business proposal of an Arabic coffee shop in the United Arab Emirates inspired by the ideas of cultural preservation, service quality, and sustainability.

Review of Literature

In order to evaluate the risks and opportunities correctly, it is advisable to begin by an examination of secondary sources, providing credible information in regards to the proposal. A review of existing literature was the first stage of the current project. The primary selection criteria comprised the degree of information’s relevance to the context of the discussed idea. It was decided to lay an emphasis on two key aspects of the proposal when conducting research.

First of all, it appears necessary to examine the business environment in which the envisioned project is to operate. Therefore, credible Internet resources were searched for verified information concerning the business climate of the United Arab Emirates. Secondly, sustainability and environmental awareness are included as the central concepts of the expected competitive advantage of the project. Accordingly, a review of their significance and prevalence in today’s business activities appeared equally pertinent to the discussion.

Business Environment of the United Arab Emirates

In today’s globalized world, new opportunities emerge worldwide, prompting entrepreneurs to consider many options. As a result, the possibility of choice entails a situation in which additional attention is devoted to the business climate of particular countries. The United Arab Emirates (UAE) has been going through a period of rapid economic growth, attracting considerable investments and developing the infrastructure.

The country has the reputation of one of the most popular tourist destinations, which expands the potential clientele of a coffee shop. The International Monetary Fund considers the UAE a high-income emerging economy, which also indicates a strong purchasing power of the local population (About UAE, n.d.) The country is characterized by cultural diversity, as local Emiratis are projected to amount to only 10% of residents (About UAE, n.d.) The rest of almost 5 million people come from different parts of the world, including India, South-East Asia, Europe, and the Americas. Accordingly, a traditional, heritage-based coffee shop concept should be appreciated by immigrants willing to become acquainted with the local culture.

Business Sustainability

Sustainability is a widespread concept in the business community of the 21^st century, and its importance remains on the increase. According to the general understanding of the term, it implies the ability of current industries to meet the demand of the public without compromising the resource availability and living conditions of future generations. Cantele and Zardini (2018) state that even a single small firm can contribute to environmental protection as long as it implements its policies thoughtfully. Research suggests that effective sustainability policies improve the image of a business, establishing better relations with customers (Cantele & Zardini, 2018).

However, Walsh and Dodds (2017) warn that such policy potential often remains unfulfilled due to a lack of recognition on behalf of the management. In other words, sustainability for the sake of sustainability without proper consideration is a flawed path. Garcia (2019) reviewed a relevant case of a Thai coffee shop and concluded that profitable sustainability for such businesses is achieved through extensive use of social media. The presented source provides valuable information regarding the concept of the project, which is to be considered when implementing the idea.

Analysis

As introduced prior, the business idea in question implies a local Arabic coffee shop with an emphasis on cultural heritage and sustainable practices. The viability of the project is dictated by the relative simplicity of its technical side. A small establishment of such kind does not require much expensive equipment or large rented spaces. Instead, it is possible to find appropriate options at reasonable prices in the UAE. Naturally, the project’s profitability became the main metric, which justified the choice. Considering the aforementioned factors, a small coffee shop will not entail large expenses.

They are expected to amount to about 340,000 AED annually, comprising salaries, equipment purchase and maintenance, supplies, and rent. Simultaneously, the total annual income is projected to be at a level of 576,000 AED, thus implying 236,000 in net profits. This degree of profitability can be attained with a number of forty customers per day, each spending 40 AED on average, which appears realistic. In addition, such an enterprise has good marketing potential, which will consume little or no resources, as digital technology enables effective campaigns via social media presence.

Product Idea

The proposed coffee shop design is to rely on the cultural heritage of the UAE. It is going to use high-quality coffee beans produced by local families and small enterprises, offering an authentic Arabic experience. People interested in the culture and history of the region will enjoy traditional decorations, music, and books, making coffee breaks a cultural experience, as well. The establishment will actively promote sustainable practices, only using recycled materials for takeaway cups instead of plastic. In addition to organic, locally made coffee varieties, there will also be healthy food options for those who would like a quick meal.

Despite the emphasis on customs and traditions of the UAE, the concept of the coffee shop will not remain outdated. It will support all modern formats, including beverages to go and online orders. In addition, as the UAE is an area in which the weather can be quite hot, a number of refreshing drinks will be featured on the menu. Overall, the coffee shop has the potential to become a safe, culture-inspired space offering quality experience supported by sustainability and reduced environmental impact.

Customers

The proposed project is expected to appeal to a wide audience in the United Arab Emirates. First of all, local, sustainable practices do not imply any compromise in terms of the beverages’ quality. Experienced coffee lovers will enjoy the abundant choice, ranging from soft, tender coffee to intense, revitalizing sorts. Second, foreign immigrants will be able to become familiar with the culture and atmosphere of the country by visiting such a tradition-based place. As their number continues to increase annually, so will the clientele. In addition, the customer base will further grow due to large amounts of tourists, who will inevitably return to the UAE once the Covid-19 pandemic stops.

In the 21^st century, customer relations have become easier than ever to maintain, as social media networks gain popularity globally. The coffee shop will utilize the potential of its online presence, promoting its image of a green, sustainable business. Accordingly, such a design will attract environmentally aware people, the number of whom increases rapidly. The positivity and friendliness of the establishment will enable a strong, lasting bond with its clients.

Partners and Competition

On the other hand, this industry is a highly competitive environment. Coffee shops actively emerge – and eventually disappear – throughout populated areas across the world. Today’s culture popularizes the drink, prompting people to consume it in a variety of settings. However, in Arabic countries, coffee holds a special significance, making the choice of format relevant in the cultural context of the project. While there many smaller establishments in large cities, the primary threat is posed by global networks of coffee shops, namely Starbucks. In order to withstand the competition with the renowned giants of the global coffee industry, the project must ensure its competitive advantage.

As discussed throughout the report, it will rely on the unique combination of Arabic traditions and sustainable business practices, securing the café’s positive image on social media. It is possible by collaborating with good partners, focusing on local suppliers of coffee. When opposing colossuses of the industry, the business should increase the emphasis on its distinct positive features. Maintaining business relations exclusively with local, environmentally responsible entrepreneurs will send a powerful message, as the “shop local” policy continues to attract supporters across the globe.

Conclusion and Recommendations

In conclusion, the proposed project outline utilizes centuries-old traditions and the continuous economic growth of the United Arab Emirates. A local culture-based coffee shop is a universal project, which demonstrates excellent potential across several market segments. First of all, the Emirati people will have an opportunity to support local manufacturers and contributed to the country’s environmental initiatives. Second, the UAE has millions of immigrants who will be able to enjoy the country’s traditional hospitality while becoming acquainted with its culture. Finally, coffee lovers from across the globe will be able to enjoy their favorite beverages of high quality in any of their preferred formats.

The project will be able to remain highly profitable by focusing on the competitive advantage identified within the framework of the present report. As the focus of consumers’ attention shifts toward smaller, responsible business practices, it appears easier to withstand the competition posed by worldwide coffee shop chains. At the same time, the project suggests minor expenses, especially in the area of marketing. It will rely on modern technological opportunities and promote itself as a perfect combination of progress and traditions through social networks. This way, the coffee shop should attract enough publicity to reach its broad target audience and fulfill its immense potential.

References

About UAE. (n.d.). Kothari Auditors and Accountants. Web.

Cantele, S., & Zardini, A. (2018). Is sustainability a competitive advantage for small businesses? An empirical analysis of possible mediators in the sustainability–financial performance relationship. Journal of Cleaner Production, 182, 166–176. Web.

Garcia, R. C. (2019). Sustainability indicators of a small restaurant business: A case of a coffee shop in Thailand. SSRN. Web.

Walsh, P. R., & Dodds, R. (2017). Measuring the choice of environmental sustainability strategies in creating a competitive advantage. Business Strategy and the Environment, 26(5), 672–686. Web.

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