Since the bombings started in Iran almost 14 days ago, the conflict has spilled into countries across the Middle East, forcing companies to rapidly assess staff safety and establish sensible strategies to keep business going.
“Our teams have naturally been attentive to the evolving situation, but overall we remain operational and focused on supporting our clients and partners,” says Richard Haddad FCSI, founder and CEO of Aventra Hospitality who is based in Dubai. “Like many organizations, we have implemented flexible working arrangements where necessary, increased coordination across borders within the region, and ensured that communication with project stakeholders remains seamless.”
He says that the inherent ability to adapt at the heart of the consulting community means that settling into new ways of working has come naturally to his teams in Dubai and Lebanon who are used to working across multiple markets.
“Digital collaboration tools, regular coordination with clients, and careful project planning have allowed us to maintain continuity and keep projects progressing with minimal disruption,” he says.
Another characteristic of the foodservice sector is a spirit of generosity and support. “Our priority remains the well-being of our teams and the continuity of service to our clients,” adds Haddad. “We have seen a strong spirit of cooperation across the industry, with consultants, operators, and developers working together constructively to navigate the situation responsibly.”
Local security and safety
The local governments in the United Arab Emirates have received praise for their response to the crisis, as Allied member Mohamed Karam, senior business development manager of Insinkerator, explains.
“Of course, we are impacted and shocked by these events, as this is our first such experience,” he says. “We are currently following all local security protocols to ensure safety and, despite the challenges, we are pleased with the significant support we have received from the authorities and the high level of cooperation across our teams.”
Also based in Dubai, Melissa Yarman FCSI, vice president EMEA for CKP Hospitality Consultants, agrees: “The current uncertainties have certainly been challenging, to say the least. That said, I believe the UAE has handled the situation very well, which reflects the strength in its leadership and governance,” she says.
Regional projects, she says, have slowed and the team has had to recalibrate targets to reflect the changes. “That said, our teams remain fully operational and continue to actively support the projects we are involved in,” she adds. “Any impact has been mitigated through increased remote coordination, prioritization of key deliverables, and maintaining close communication with the wider project teams.”
What it means
Right now many will be hesitant in committing to new business. “Our most heavily effected region is MEA and we are seeing hold on all decisions and projects currently for obvious reasons,” says Simon Parke-Davis, vice president of international sales for Alto Shaam.
“One challenge is the inconsistency in statements from all involved and no clear sign of when we can all hopefully see this finish and deliver peace once again to the region and rebuild,” notes Parke-Davis.
In the short to medium term the consensus is that all sectors will likely suffer from spiking oil prices. “The impact of the current situation will extend beyond foodservice; it is affecting every sector and everyone globally. We are already seeing a significant increase in energy prices worldwide,” notes Karam.
“The Middle East is critical for global oil supply, and disruptions in shipping through the Strait of Hormuz will 100% affect most energy markets,” says Paul Anderson, managing director of Meiko UK. “Recent conflict has already pushed diesel and fuel prices higher, affecting transport and logistics worldwide and rising oil prices will drive inflation and increase operational costs for businesses including restaurants and caterers.”
For professionals and companies operating in the foodservice industry this spike might translate to higher food transport costs, higher electricity and gas bills for kitchens and increased delivery costs resulting in pressure on margins for restaurants.
Innovation follows challenge
From the foodservice project perspective, Yarman expects operators will need to recalibrate their approach and strategy as traveller profiles are likely to change – a softening in leisure travel and an emergence in business travel. “Both hotel restaurants and stand-alone operators will likely need to reassess their formats, operating models, and cost structures to ensure they remain commercially viable and aligned with the needs of this evolving traveller segment.”
But Haddad takes heart from the fact that the sector has historically demonstrated resilience, particularly in the Middle East where hospitality is deeply rooted in culture and economic development.
“Short-term adjustments may occur as the market responds to current circumstances, but we remain confident in the sector’s long-term strength and growth trajectory especially with the various government support initiatives towards a swift recovery,” he explains adding that periods like this often accelerate innovation and reinforce the importance of thoughtful planning, operational efficiency, and well-designed foodservice concepts.
“We expect to see continued investment in hospitality, dining, and lifestyle experiences across the region as the situation stabilize and confidence returns,” he concludes. “The Middle East continues to be one of the most dynamic hospitality and foodservice markets globally. With major tourism initiatives, new developments, and a strong culture of dining and social experiences, the sector is well positioned to move forward with renewed energy.”
Yarman is similarly hopeful — “we remain optimistic that the rebound will be faster this time around,” she says. “The industry today is far more experienced in navigating disruption, and the region has demonstrated strong resilience and an ability to recover quickly when market conditions stabilize.”
Tina Nielsen
