Internship presentation lounge bar

8/8/2019 Internship presentation lounge bar

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Lounge bar business feasibility in

Dubai

Submitted by: Abhishek

SMBA09004


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Landmark Group

Statement of purpose: Creating exceptional value for all those whose lives

we touch

Turnover of USD 3.2 billion

Growth at a CAGR of 25%

Operation in 15 countries

13.4 million sq. Ft. Of retails space

More than 31,000 employee


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Dubai Its capital of expatriates with only 20% (Dubai population 1.7 Mn) local residents

The population is increasing 10,000 every month Its strategic location makes it a popular destination among Asian, European &

African residents for business and leisure purpose

Its one of the top 10 most visited city

with 7 Mn guests in 336 hotels (52 five star, 59 four star, 55 three star,

44 two star & 126 one star hotels)

with highest average room rate and average revenue per available room

in the world i.e. very effluent visitors

As per local rules:

only non-Muslims of 21 & above can purchase alcohol from designated

MMI & A&I retail shops

Liquor license is required to purchase alcohol

Cant drive after drinking

All bars to be closed between 4pm-6pm


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Lounge bar

Lounge is an area designated for waiting and relaxing (usually not for eating)in

a hotel, apartment, theatre or airport etc.

A typical lounge bar would have

Seating arrangement: a comfortable usually sofa

Theme: bright and a formal look

Food: with limited service for snacks (very few 4-5) but serves all

beverages including tea/coffee and alcoholic

Music: With instrumental or Jazz music having

No dance floor or live entertainment e.g. DJ or band

Lounge bar in a hotel is mostly used by the in-house guest (approximately 70%)

for business client and official meetings

Its not a hangout casual place but more of an official classy place


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Lounge bar industry structure in Dubai

All four & five star hotels have at least one lounge bar

A lounge bar license would be easy and less stringent rules as compared

to nightclubs etc.

A lounge bar in a hotel with corporate and executive clients would cater

higher revenue than a leisure based clientele

Lounge bar has wine & beer clientele

Lounge bar has almost 90% regular clients


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Typical revenue break up in a lounge bar

Lounge bar has a payback period

of approximately 3-3.5 years

It involves less capital investment

than any of the nightclub,

discotheque etc. operation &

entertainment

We shall find very few typical

lounge bars e.g. The Bar at

Hyatt, NEOS at The Address

Lounge bar concept is not very

clear and popular other than

five star hotels


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Perceptual mapping of lounge bar

Strong Medium Weak

High I/G I/G S

Medium I/G S H/D

Low S H/D H/D

M

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ess

B u sin e ss stre n g th

/ = / ; = ; / = /I G IN V E S T G R O W S S E LE C T IV E H D H A R V E S T D IV E S T


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Porters Five Forces


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Contd.

Barriers to Entry Licensing, rules & regulations

Bargaining power of Suppliers: high

Duopoly ( only two MMI and A& I)

Bargaining power of Customers: medium

Strict rules make tough to direct alcohol purchase

But illegal availability slams the onsite sale

Threat or development of substitutes

New hotels and bars with similar theme

There is no price of switchover

Rivalry among the existing bars

Established bar has created its own clientele


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Nelsons bar at Media Rotana in Al Barsha


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NEOS , The address


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Crystal bar at Grand millennium, Dubai


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Buddha bar


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Bar 360 at Jumeirah beach hotel


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Barasti bar at Le Meridien Mina Seyahi, behind

Dubai Media City


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World famous lounge bars

FELIX Club, Berlin, Italy


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Tapas lounge bar: Hotel Siddharth, Jaypee

group, New Delhi


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Cervantes Hotel, Paris

Persian design -Serves breakfast in the morning from 7 10 am


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Carpe Diem Lounge Club and Restaurant,

Barcelona


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Neva, Munich


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La Caravella, Venice

Hours: daily 12.00 to 15.00 and 19.00 to 23.00

Prices: Main course 32 Euros

Cuisine: Italian


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Moro, London (Spanish & Portugal feel)


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Fifteen, Amsterdam graffiti theme


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Customers choice: data collection

Sampling method: Convenient sample

Survey spots :3

E-max at Oasis mall

Home Centre at MOE

Centre Point at Mirdiff mall

Sample size: 74 samples

Nationalities: 25

Survey form


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Survey results

The sample contains 25

nationality origins

The highest % of Asians33%

Followed by 22% of GCC

nationalities and 18 %

Europeans

With 12% Africans and

rest other part of the

world


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Age group, gender, marital status & annualincome


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Resident or not?Have they ever visited a lounge bar?

Our sample had 86% of

UAE residents

With very little of 14%

only were tourists Sample contains 68%

respondents those

have visited a lounge

bar at least once

32% said they had not

visited a lounge bar

or they had no idea of

that


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Preferred bar choice of the respondents


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Preferred bar drink & starters of therespondents


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Bar preference of nationalities


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Beverages preference of nationalities


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Quality of crowd choice at different bars

If we see the trendof preferencethe quality ofcrowd is ofutmost importantin case of lounge

bar

Shishabar thecustomer maycome in smallgroup orindividual forparticular test so

at secondpreference

In case English bar itseems as if oflow importanceas compared to

other places


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Importance of theme w.r.t. bar choices

As per our surveyrespondentsEnglish barlovers has thehighestimportance outof all the bars

For lounge barsslightly lesser %has as their firstchoice as themebut the equal %has as the 2nd choice

For nightclub alsotheme is quiteimportant

For small no ofshisha barrespondents its

primaimportance


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Music lovers preference distribution

For night club loversmusic as theirfirst is highest ofall the bars firstchoice

Not only as their firstchoice but if wesee the top 3choice combinedits significantlyhigh

Lounge bar music isvery important

for the firstchoice musiclovers

Particularly may bedue to slow,soothing andspecific choice

of music


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Findings and Recommendation

The lounge bar business is premium business It is basically driven by its distinguished theme, music & ambience

The franchise concept is not very popular but can be thought as thepreferred location would be inside a five star hotel

Preferred choice is nightclub/disc in Dubai so a fusion theme might be agood idea

as the place is dominated by Asians in numbers and they are not a very good target forlounge bar

Of course the business is profitable and with the growth of Dubai its goingto grow

Now we need to make & discuss the business plan elaborately in terms offinancial aspect/theme or concept development/location/ and marketingetc


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Learning out come & difficulties

Understood the industry structure

Entrepreneurship in Dubai : investment, rules and regulation approvals

Learned the basic uses of SPSS software

We were facing difficulties in collecting information about business in UAE

Difficulty in conducting the first hand data: survey Its not allowed in Dubai/UAE

The alcohol being taboo to the locals


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Thank you

Internship presentation lounge bar

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