The period of return on investment (ROI) for those Invested in the food and beverage industry has been extended from 3-4 years to 5-7 years, according to Farah George, general manager of Food and Beverage at Al Khayyat Investments.
Speaking at the Catering News ME Big F&B Forum, held at the Ritz Carlton, JBR, yesterday, Farah was joined by Vikrant Rohatgi, associate director and lead of the Strategy Group at KPMG. Vikrant said: “Over the last few years investors have seen the F&B sector grow and it’s been a resilient sector even in the downturn. Investors are willing to stay invested for longer periods of time and take lower returns because of the solidity of that return.
“New concepts coming are increasing competition and with that the sustainability of the concept and profitable growth of concept are becoming increasingly important. Return expectations are dropping year on year,” he added.