Dubai has emerged as the preferred destination for international real estate investors. A city that seamlessly blends technology and economic development with the likes of Berlin, New York, Hong Kong, and San Francisco.
Dubai owes much of its appeal to the visionary policies implemented by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the United Arab Emirates. These policies have made real estate and commercial properties in Dubai highly attractive to international investors.
This case study presents The Hamptons Cafe, a rapidly growing establishment that has become a favorite among Emiratis, expats and tourists. Its captivating aesthetic, carefully chosen location, and focused approach to branding and marketing are excellent examples of commercial real estate landscape possibilities.
In today's article, we will delve into the transformation of The Hamptons, exploring how it evolved into the well-known chain in Dubai it is today.
The Idea Behind the Branding: The Hamptons Cafe
Branding and establishing your brand is usually the first step to creating a successful business. The team behind the Hamptons realized this early on, so they chose to associate their cafe brand with a well-known name in the luxury scene: The Hamptons.
The Hamptons is a region located on the eastern end of Long Island, New York, USA. It encompasses a group of charming and affluent villages and hamlets, including Southampton, East Hampton, Westhampton Beach, Sag Harbor, and Montauk. Known for its stunning beaches, elegant estates, upscale lifestyle, and vibrant social scene, the Hamptons has been a popular retreat for affluent New Yorkers for decades.
The Hamptons Cafe associated their brand with the established Hamptons and this allowed them to expedite their branding process. Additionally, they infused the cafe's interior design with elements reminiscent of the renowned retreat for New Yorkers. Basically, The Hamptons Cafe was able to create a calm, peaceful and yet luxurious ambiance for their customers.
The Hamptons Cafe’s Aesthetic is Very Effective for Dubai
We are immediately struck by the lush greenery and refreshing space when we step into The Hamptons Cafe in Dubai. The combination of wooden chairs and tables, white furnishings, expansive windows, and high ceilings create a feeling of relaxation as if on vacation.
This aesthetic, reminiscent of The Hamptons in New York State, offers an escape from the bustling city. They created a small space of American east coast luxury within Dubai where families can enjoy a tray breakfast, and a refreshing cup of coffee.
Therefore, The Hamptons Cafe's aesthetic offers a mini vacation with green and soothing spaces, providing the perfect setting for a family breakfast. This great experience is conveniently located just 10 minutes from home for most of their clientele. This is made possible by their well thought out location, because location is a major part of every brick and mortar business, including cafes.
Well-Thought Out Location For the Primary Audience
The success of investing in a brick and mortar business lies in its location. There are three particular factors that a brick and mortar business needs to keep in mind when choosing their location: traffic, the kind of traffic, and the disposable income of their traffic. Ensuring sufficient traffic that meets your business model justifies the investment in a particular area, precisely where The Hamptons Cafe excelled.
From a real estate angle, The Hamptons Cafe’s locations (Arabian Ranches, Jumeirah Beach Road, and Jumeirah islands) are quite costly. This means in order to sustain a business in those areas their revenue should be significant.
The Hamptons Cafe Almost Exclusively Chooses Family Neighborhoods
From a branding perspective, the Hamptons Cafe positioned themselves as an escape from the bustling city, offering a place for families to enjoy breakfast together. That's why their cafes have a strategic location within a 10-minute radius of the most popular residential areas for families, such as The Springs and Arabian Ranches.
Of their current locations, the first two are near supermarkets, schools and just a short drive away from family-friendly neighborhoods like The Springs and Arabian Ranches. On the other hand, the Jumeirah Road location is close to Jumeirah Public Beach, Arambaksh, and other recreational spots where families can relax and children can engage in sports activities.
It is also important to note that according to Arabian Business, women influence 80% of purchases in Dubai, despite comprising only 27.8% of the population. Therefore, it is understandable why The Hamptons Cafe is popular among families and is often chosen by the family's women for breakfast, as they recognize the convenience of having a meal close to their daily routines.
The Hamptons Cafe is Only Available in Upper Middle Class Communities
Coffee at the Hamptons Cafe is relatively expensive when compared to the average coffee shop in Dubai, but that is to be expected given their premium ambiance and brand. The coffee here ranges from 25 AED to 45 AED. In a low income community their coffees would be unaffordable, so choosing a location that matches their pricing strategy was pivotal.
The Hamptons Cafe for the most part is situated in upper middle class communities. The reason for this is simple: the people in upper middle class communities have higher disposable incomes, thus they can afford to pay a higher price for premium coffee.
When choosing a physical location for your business it’s very important to keep in mind that the traffic in the area matches your pricing and branding strategies. This is also true for non-premium businesses. For example, if you want to open a cafe that sells affordable coffee, there is no point in paying high rent to set up shop in upper middle class communities. It would be much better to simply sell affordable coffee in lower income neighborhoods, and save money on rent.
Stat Global Can Help Find the Best Location for Your Business
If you want to find the best location for your business, reach out to us at Stat Global. Our team of real estate advisors will present you with the data and facts you need to decide which location will suit your business and pricing models.