UAE hotels scale back on buffets in bid to reduce food waste



DUBAI // Hotels and restaurants are scaling back on all-you-can-eat-buffets as part of efforts to curb waste and to adapt to changing attitudes among consumers.

From the country’s famous Friday brunches to buffet breakfasts and evening spreads, diners are often greeted with mountains of food in endless rows of serving dishes.

Now a la carte service is replacing that at many outlets that are increasingly conscious of the amount of waste they generate.

“Hotels are doing away with the ‘all you can eat’ concept,” said Hilton Abu Dhabi’s Executive Chef Walter Miculan.

“Guests have grown to prefer quality over quantity — so the focus now is on set menus and smaller buffets.”

A recent survey of 45 hotels by Masdar Institute scientists Dr Sanaa Priani and Dr Hassan Arafat found that only 53 per cent of Iftar meals actually get eaten, and 46 per cent of lunchtime buffet food during the rest of the year.

A fraction of the leftovers are handed to staff or charity and almost all is thrown into bins and sent to landfill, the study found. It has been estimated that about Dh13 billion worth of food is wasted by businesses and consumers.

Now businesses responding to the unpalatable trend.

Reif Othman, former executive chef at Dubai’s upmarket Zuma restaurant, who now runs the private dining concept The Experience in Dubai’s H Hotel, also senses a trend away from open buffets, and believes the reasons are economical as well as environmental.

KPMG’s 2016 UAE Food & Beverage Report shows that 19 per cent of 840 survey respondents said they eat out less now, and 28 per cent are more conscious of what they order.

“A la carte is a much more enjoyable experience anyway,” he said.

An increasing number of restaurants are moving towards a la carte and set menu options for Iftars and brunches, including Asia de Cuba in Abu Dhabi, Burger & Lobster in Dubai Downtown, Morah in JW Marriot Marquis in Business Bay, and Ramuske at DoubleTree by Hilton in JBR.

The Masdar survey found just 12 per cent hotels in the study give leftover food to their staff to eat, but that appears to be changing too.

At the three branches of the Lime Tree Café in Dubai, managing partner Corinne Bowker explains that unsold food is shared not only among staff, but with local neighbourhood workers too.

“We give to a variety of groups including construction workers and tradesmen,” she said.

“We have a policy that no food is thrown, so any leftover bread that day is dried, toasted and made into breadcrumbs. All our packaging is biodegradable, as we consider this to be a major problem too.

Not all food can be spared for long without becoming a health risk.

“You have to be fully aware of high risk food items like chicken and seafood, and plan accordingly for those in your menu,” Bowker added. “We plan that in our daily quantities.”

James Knight-Pacheco, Vida Downtown Dubai hotel’s executive chef, said his hotel takes the issue of food waste reduction seriously.

“We look at using the food after the buffet for staff canteens,” he explains.

“There is definitely a much higher awareness and effort being made to reduce food wastage.”

Emirates Red Crescent runs the Saving Grace driver, collecting unused food from hotels, restaurants and palaces, and distributing them to the less well-off.

In addition, at least 30 restaurants in the UAE have signed up to join the government’s new Food Bank, which, when it becomes fully operational, will enable low-income families and labourers to pick up left over food donated by hotels and supermarkets, from designated food banks.

“Food waste is one of the most significant drivers of climate change,” said Tatiana Antonelli Abella, founder of the Dubai-based environmental non-profit Goumbook.

“The Year of Giving is being strategic, as many efforts to control waste are coming together and local authorities are working on a framework, implementing policies and regulations.”

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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.”

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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