Restaurants that fail to provide filtered tap water are putting a thirst for profits before customer satisfaction, industry experts said.
Diners have long bemoaned being asked to pay Dh20 ($5.45) to Dh40 ($9) for imported bottled water, with just a handful of venues offering free or low cost water.
In Dubai, an edict planned for 2020 mandated hotels and restaurants to offer local alternatives to bottled drinking water. The regulations were to be set out in a food code published by Dubai Municipality, but are yet to be put into effect.
Local water produced in the Emirates is typically sold in shops for Dh1 ($0.27), with imported bottles between Dh3 and Dh6. The gulf in prices shows the profits that restaurants make.
You’re being asked to make an uneducated decision based on a question that’s being thrown at you — the margins are very healthy on that
Naim Maadad,
restaurant owner
Haider Madani, founder and co-owner of Dubai restaurant Cassette, says that a failure to provide filtered local water options was short-sighted.
His restaurant has offered free bottles of filtered tap water to customers for the past four years. He sells mineral water bottles for Dh12 ($3.20)
“I get that restaurants want to make money but focusing on customer experience and providing the options they want is the best strategy,” said Mr Madani.
“That will draw in more clientele and, as a result of that, make you more money.
“It’s just really a matter of education and changing the established way of thinking.
“I come from an English background and we always had tap water available to drink in restaurants free of charge.
“That’s the way it should be everywhere.”
Mr Madani said the reason why many restaurants in Dubai have not adopted the policy was an obvious one.
“The profit margins are much higher when you are selling someone a bottle of imported mineral water for more than Dh35, in some cases,” he said.
“In the long run, your customers will start to drift away and go elsewhere.”
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Michelin-starred restaurants in Dubai - in pictures
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The issue of drinking water being freely available in restaurants is not just isolated to Dubai or the GCC region.
Licensed premises, that serve alcohol, in England, Scotland and Wales are obliged to provide free drinking water upon request.
However, with many customers unaware of their rights this has not always proven to be the case.
The Telegraph in the UK reported last year how customers were being charged up to £4 (Dh18.2) for what were clearly jugs of tap water in one London restaurant.
Another major issue is the environmental impact of importing bottled water into a country.
A recent report from the World Economic Forum (WEF) said plastic bottles were a major issue when it came to climate change.
Plastic bottles represented almost 12 per cent of the waste items that end up in the world’s oceans, only plastic bags, at just over 14 per cent, were a bigger problem.
Another restaurant owner said many businesses in Dubai had taken advantage of the fact the proposed changes had “gone by the wayside”.
“A lot of restaurants are taking advantage and it’s common to be asked do you want still or sparkling water as soon as you sit down and haven’t even seen a menu,” said Naim Maadad, owner of popular Dubai restaurants Reform Social & Grill, Folly and Bistro des Arts.
“You’re being asked to make an uneducated decision based on a question that’s being thrown at you — the margins are very healthy on that.
“People are happy to take advantage of that but it’s short-term thinking as people will analyse what they spend afterwards.”
Mr Maadad said most customers were clued-in and would only return to a restaurant if they felt it was offering them decent value.
Customers at his restaurants are able to order bottles of house water for Dh22, which can then be refilled as many times as they like.
Reigniting debate
The subject of Dubai restaurants offering filtered water to customers, in addition to more expensive options, has been a hot topic on social media this week.
Emirati entrepreneur Ahmed Bin Mohamed Zakaria sparked debate when he broached the subject on Twitter.
“There are times when I go to a restaurant with my family and the cost of water is almost 30 per cent of the total bill,” he said.
“Some places can charge up to Dh40 for a bottle of water and it is just ridiculous.
“I often ask for local water and am told ‘sir, we don’t serve local water’.
“Something needs to change. Restaurants should be offering both local and imported water to give people the choice.”
The National contacted Dubai Municipality for an update on the rules around serving water in restaurants.
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Empty Words
By Mario Levrero
(Coffee House Press)
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UFC Fight Night 2
1am – Early prelims
2am – Prelims
4am-7am – Main card
7:30am-9am – press cons
More from Rashmee Roshan Lall
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
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What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
ITU Abu Dhabi World Triathlon
'Saand Ki Aankh'
Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars
Uefa Nations League: How it Works
The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.
The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.
Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.
Mohammed bin Zayed Majlis
match info
Southampton 0
Arsenal 2 (Nketiah 20', Willock 87')
Red card: Jack Stephens (Southampton)
Man of the match: Rob Holding (Arsenal)
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OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
8. Arsenal 56
9. Sheffield United 55
10. Everton 50
11. Burnley 49
12. Crystal Palace 49
13. Newcastle 46
14. Southampton 44
15. West Ham 39
16. Brighton 37
17. Watford 36
18. Bournemouth 36
19. Aston Villa 32
20. Norwich City 29