Leveraging F&B Expertise to Drive ROl Through Concept Innovation and Space Optimisation
EXECUTIVE SUMMARY
The First Group Hospitality successfully transformed Barbary Deli, an underperforming restaurant and bar in Dubai, into Lola Taberna Española, a vibrant Spanish tapas bar, achieving a full ROI of $350,000 in under 9 months. This case study highlights The First Group Hospitality’s strategic approach to concept development, space optimisation, and Food & Beverage management, which revitalised the venue’s profitability and market positioning.
BACKGROUND
Barbary Deli (2018–2021), located in a high-traffic Dubai area, initially thrived as a New York-inspired deli. However, shifting consumer preferences and increased competition led to declining footfall (-25% YoY) and stagnant revenue. A 2021 market analysis revealed growing demand for experiential Mediterranean concepts, prompting The First Group Hospitality to reimagine the space.
CHALLENGE
- Underperformance: Declining sales and customer disengagement with the deli concept.
- Space Utilisation: Inefficient layout limiting seating capacity and ambiance.
- Market Shift: Rising competition in casual dining; need for differentiation.
STRATEGIC APPROACH
The First Group Hospitality deployed a three-pillar strategy to reposition the venue
1- Concept Development: Crafting Lola Taberna Española
- Market Research: Identified a gap in authentic, mid-range Spanish tapas bars in Dubai.
- Brand Identity: Designed “Lola Taberna Española” as a lively, communal space with rustic Andalusian charm, live Flamenco nights, and a curated Iberian menu.
- Menu Engineering: Partnered with a Spanish chef to develop shareable tapas, paellas, and sangrias, balancing authenticity with local tastes.
2- Space Optimisation: Maximising Revenue Potential
- Layout Redesign: Converted 3,200 sq. ft. to include a central bar, open kitchen, and flexible seating (capacity increased by 30% to 120 covers).
- Ambiance: Added warm lighting, terracotta tiles, and vintage décor to enhance experiential dining.
- Flow Efficiency: Streamlined service pathways to reduce wait times and improve staff productivity.
3- F&B Management: Operational Excellence
- Cost Control: Negotiated partnerships with Spanish suppliers for premium ingredients at competitive rates.
- Staff Training: Implemented a 4-week program on tapas service, wine pairing, and customer engagement.
- Marketing: Launched a pre-opening campaign leveraging social media influencers and targeted ads, emphasising Lola’s “Madrid Nights in Dubai” theme.
IMPLEMENTATION
- Timeline: 3-month closure for renovations, with The First Group Hospitality’s project team ensuring on-time, on-budget delivery.
- Investment: $350,000 allocated to interior redesign ($230k), kitchen upgrades ($100k), and marketing ($20k).
RESULTS
- Revenue Growth: Monthly sales increased 230%, from $45,000 (Barbary Deli) to $105,000 (Lola Taberna Española) within 6 months.
- ROI Achieved: $350,000 investment recouped in 8.5 months due to sustained revenue uplift.
- Customer Engagement: 4.8/5 Google reviews; 90% weekend occupancy; repeat visits up 50%.
- Awards: Featured in Time Out Dubai’s “Best New Openings 2023.”
CONCLUSION
By combining data-driven concept development, strategic space optimisation, and operational rigour, The First Group Hospitality transformed a faltering asset into a profitable destination. Lola’s success underscores The First Group Hospitality’s expertise in identifying market opportunities, executing rebrands efficiently, and maximising ROI in competitive F&B landscapes.
“Lola Taberna Española exemplifies our ability to pivot concepts swiftly while respecting budgets. The ROI speaks to the power of understanding the location's dynamic dining scene.” — Mark Patten, Senior Vice President – Food & Beverage, The First Group Hospitality