Lebanon Opportunities – August 2019

A BOOMING AREA
Several factors have contributed to creating
a buzz in Mina El Hosn, and in turning it
into an eating out destination. “Its location
in downtown and near Beirut Souks and
its easy access played a key role,” Chaccour
said. The presence of large sidewalks beside
the shops is suitable for café concepts.
“Visitors can enjoy hookah (shisha) and
lunch while sitting on the
sidewalk,” Chaccour said.
For the newcomers, the
concentration of F&B outlets
in this area has become the
area’s most attractive aspect.
“The presence of well-known
restaurant brands has made
the street an attractive F&B
destination, and encouraged
us to open an outlet,” said
Mario Haddad, Managing Partner of Le
Sushi Bar. Le Sushi Bar is trying to attract a
certain audience, mainly the middle to upper
income class category, who frequently visit
the area. Mina El Hosn attracts consumers
with high purchasing power who either
live in residential properties or work in the
offices around the area, said Haddad. “The
region has become a hub for big dining
brands, and this is attracting new investors,’
said Karl Atallah, CEO and Founder of the
Amar chain of restaurants. Restaurants in
the area are busy throughout the day. “This
can help us maximize our work to several
shifts, and cater for lunch and dinner,”
Haddad said. Restaurants in the area also
perform well all year round, according
to Atallah.

LEBANON OPPORTUNITIES, AUGUST 2019 49

http://www.opportunities.com.lb

ON OUR WEBSITE

More information is available by typing the numbers

below into the Reference Finder on our home page

L0819-108 Optimistic Outlook for

Lebanon’s F&B Market

L0819-109 The Neighborhoods

L0819-110 Analysis of Lebanon’s

Travel and Tourism Sector

L0819-111 Contact Information

INVESTMENTS AND RETURNS

Restaurant owners are allocating large

investments to their outlets in Mina El

Hosn. Le Sushi Bar invested $2 million in its

outlet, including the rent, and the creation

of the outlet. “Investment is expected to be

returned within four years,” Haddad said.

S.G.R. Offshore invested $2 million in the

Em Sherif café. “We are an upscale brand,

and we spend a lot on the

setup,” Chaccour said. The

café returned the investment

within three years, although

the overhead expenses are

high. Chaccour said that 23

percent of the revenues go to

salaries as the café employs

100 people. The leasing price

of a 330 square meter shop

in Rafic Salloum Street is

estimated at $400,000 per year. Investment

in the decoration of Bint Em Sherif will

reach around $400,000. “We have already

invested $2.9 million in the infrastructure

and set up of N°6, and we only need to change

the design,” Chaccour said. Amar will have

capacity for 150 people.

OUTSTANDING

PERFORMANCE

Most of the restaurants in the area are

working at full capacity. Demand at Em

Sherif is surpassing supply, according to

Chaccour. The restaurant has capacity for

160 people. “At the peak time for lunch and

dinner, we are not able to accept all our

clients,” he said. Em Sherif receives up to

800 visitors every day. “We have demand

exceeding our capacity. This is creating

demand for other restaurants around us,”

Chaccour said. Em Sherif has witnessed

50 percent growth in its business since its

opening in 2016. “Every new restaurant

coming to the area is bringing new clients,”

Chaccour said. BeBabel, a casual and stylish

concept, which has capacity for 240 people

indoors and outdoors, is fully occupied

every day of the week, according to Nassim

Gharzeddine, Marketing Manager at Afkar

Group. Le Sushi Bar’s performance was

outstanding in the first two months and

in line with the owner’s expectations.

“We are doing very well,” Haddad said.

The newcomers have high expectations

regarding their performance. “We are very

optimistic, and we have high expectations for

all seasons,” said Atallah.

F&B SPENDING

The brands in the area, although they are

specialized and offer high quality food and

service, are also affordable and match with

most income categories. At BeBabel, the

average ticket price is between $30 and

$35 per person. The average ticket price

at Le Sushi Bar is $70 per person. At Em

Sherif, guests can order a hookah with lunch

starting from $20, and ticket prices reach

up to $100. The average ticket price at Em

Sherif café is $40. Hookahs represent only

around ten percent of Em Sherif’s sales,

while the rest goes on food. Restaurant

chains usually target locals when it comes

to making investments. “When we conduct

a feasibility study, we do not take into

consideration the presence of tourists. We

consider them a cherry on top when they

come,” Chaccour said. At BeBabel, around

75 percent of the clients are locals, and

the rest are foreigners, including Arabs

and Europeans. “The area is near several

hotels, so it definitely attracts tourists,”

Gharzeddine said.

Reported by Rania Ghanem

Most of the

restaurants in

Mina El Hosn

are working at

full capacity

BeBabel

*6=,9:;69@

SOLIDERE NEW AREAS