EXECUTIVE SUMMARY
The First Group Hospitality transformed The Luggage Room, an underperforming bar in Dubai Marina generating $170K annually, into Risen Café & Artisanal Bakery, a thriving $1M/year destination. With a strategic $500,000 investment in concept development, space optimisation, and operational excellence The First Group Hospitality achieved 100% ROI in under two years, showcasing their expertise in Food & Beverage (F&B) innovation, and revenue-driven design.
BACKGROUND
The Luggage Room operated as a speakeasy-style bar in Dubai Marina, a prime location with high foot traffic. Despite its unique theme, the venue struggled due to:
- Limited daytime appeal: Nightlife-focused concept missed breakfast/lunch demand.
- Inefficient space utilisation: Low seating capacity and poor layout hindered customer flow.
- Outdated offerings: Menu and ambiance failed to resonate with locations demographic.
The First Group Hospitality identified an opportunity to reposition the space into a daytime-first, artisanal concept aligned with Dubai Marina’s affluent, cosmopolitan demographic.
CHALLENGE
- Revenue stagnation: $170k/year revenue in a high-rent area.
- Concept-market mismatch: Niche bar theme excluded families, remote workers, and daytime patrons.
- Space inefficiencies: Underused square footage and poor operational workflow.
SOLUTION: THE FIRST GROUP HOSPITALITY’S STRATEGIC APPROACH
1- Concept Development & Market Alignment
- Rebranding: Shifted from a speakeasy bar to Risen Café & Artisanal Bakery, emphasising premium, Instagrammable baked goods, specialty coffee, and all-day dining.
- Menu Design: Curated a menu of artisanal sourdough, gourmet pastries, and plant-based options, targeting Dubai’s health-conscious and luxury-seeking audience.
- Daypart Expansion: Introduced breakfast, lunch, and afternoon tea to maximise traffic across all hours.
2- Space Optimisation
- Layout Redesign: Increased seating capacity by 40% through smart zoning and modular furniture.
- Bakery Theatre: Added an open kitchen and display counters to showcase fresh baking, enhancing customer engagement.
- Aesthetic Upgrade: Modern, minimalist design with natural wood accents and Instagram-friendly lighting to attract social media-savvy patrons.
3- Operational Excellence
- Staff Training: Implemented barista and service excellence programs to elevate customer experience.
- Supply Chain Efficiency: Partnered with local suppliers for fresh ingredients, reducing costs and aligning with sustainability trends.
- Tech Integration: Introduced POS systems for faster service and data-driven menu adjustments.
IMPLEMENTATION
Timeline: 5-month renovation and rebranding phase (Q3 2021–Q4 2021).
Budget: $500,000 allocated to design, kitchen upgrades, marketing, and staff training.
Launch: Open in December 2021 with influencer collaborations and community events to drive buzz.
RESULTS
- Revenue Growth: Annual revenue surged from $170k to nearly $1M within the first-year post-launch.
- ROI Achieved: $500k investment recouped in under 24 months due to increased margins and foot traffic.
- Customer Engagement: 4.8/5 average online reviews, with praise for ambiance, quality, and service.
- Awards & Recognition: Featured in Time Out Dubai and nominated for “Best New Café” in 2023.
- Winner of Virgin Radio’s “Best Coffee In the UAE” 2024.
CONCLUSION
The transformation of The Luggage Room into Risen Café & Artisanal Bakery, underscores The First Group Hospitality’s ability in Food & Beverage concept development, space optimisation, and operational strategy. By aligning the venue with market demand, redesigning for efficiency, and prioritising customer experience, The First Group Hospitality turned a stagnant asset into a high-performing destination.