As the UAE’s food and beverage sector navigates a challenging period marked by geopolitical uncertainty, softer demand, and rising operational costs, Dennis McGettigan, CEO of McGettigan’s and founder of Vision Hospitality, believes the industry is entering a defining phase—one that will ultimately come down to resilience and adaptability.
“This will be survival of the fittest,” McGettigan says, reflecting on the accelerating consolidation across the F&B landscape.
Strategic Expansion Amid Uncertainty
Vision Hospitality’s recent acquisition of Bla Bla Dubai, a prominent beach club and nightlife destination in Dubai, highlights this shifting dynamic. The deal, completed on March 1, was initially agreed before the latest regional crisis but has since taken on greater strategic significance.
“We had agreed the deal before all this kicked off, and we took it over just as the situation escalated,” McGettigan noted. “But when you commit to something, you’ve got to keep going with it.”
The acquisition forms part of a broader expansion strategy that has seen Vision Hospitality open and acquire four venues over the past year, including locations in Expo City Dubai, Al Barsha, and Deira.
A Sector Under Pressure
The F&B sector is currently facing a downturn, with operators contending with reduced consumer spending, higher costs, and ongoing geopolitical tensions. These pressures are already driving consolidation, with larger, well-capitalised groups gaining ground while smaller, independent operators face increasing challenges.
“You’ve seen consolidation already—groups coming together, operators merging,” McGettigan explains. “Now, I think it’s going to be survival of the fittest.”
Despite the short-term difficulties, McGettigan remains optimistic about the UAE’s long-term outlook, emphasizing the country’s stability and leadership.
“It’s in a rut at the moment, there’s no question about that. But I think the leadership here has done a super job keeping people safe, and I do believe we’ll bounce back. When that happens, there’ll be real pent-up demand.”
Revitalising Bla Bla
In the immediate term, the focus is on stabilising and repositioning Bla Bla Dubai, a large-scale, multi-concept venue featuring 21 bars, a restaurant, and entertainment spaces.
“This is a big animal we’ve taken on,” McGettigan says. “But it plays to our strengths—entertainment, hospitality, nightlife. We want to reintroduce people to the venue and get it working strongly again.”
Plans are already underway to enhance the venue’s appeal, including an increased lineup of live events and concerts later in the year.
Recovery on the Horizon
While confident in the sector’s resilience, McGettigan cautions that recovery will take time. Even under favourable conditions, he expects a meaningful rebound only towards the end of the summer.
“If everything ended tomorrow, I still think the real bounce back comes around September,” he says.
Growth Opportunities Remain
Despite the current headwinds, Vision Hospitality continues to actively explore new opportunities, maintaining a growth-focused mindset.
“We’ve been very active over the past 12 months, opening and acquiring multiple venues, and we’re always assessing what’s out there,” McGettigan explains. “If it fits our portfolio and the numbers add up, we’re happy to move forward.”
A key advantage, he notes, lies in the company’s ownership structure, which allows for greater flexibility in decision-making.
“I don’t have anyone to answer to, apart from the bank,” he says. “That gives us the freedom to take our time, assess opportunities properly and invest where we see real value.”
A Defining Moment for the Industry
As the UAE’s F&B sector adjusts to a new reality, the coming months are likely to reshape the competitive landscape. For operators like Vision Hospitality, the focus is on navigating short-term challenges while positioning for long-term growth.
In McGettigan’s view, the current environment is not just a test—it is a turning point.
And for those who can adapt, invest wisely, and endure the pressures of the present, the future may offer even greater opportunities in one of the region’s most dynamic industries.
