Abstract
This case study follows the entrepreneurial journey initiated by a group of undergraduate students in the United Arab Emirates (UAE) and examines the decisions made and lessons learned along the way. Uncovering the intricacies of the process of business ideation, the case analyses the predisposing conditions that led to the establishment of the Bulb’s Station—a vending booth offering exclusively homemade food. A particular emphasis is placed on analysing the two major experiences that the partners had running the booth, namely, at the 2016 AUS Global Day and the 2016 UAE National Day Celebration at the American University of Sharjah (AUS). By providing detailed information regarding the type, variety, quantity and pricing of dishes on the menu, the reader is brought to estimate the extent to which the booth’s operation was successful at each of the two events. Based on prior challenges and shortcomings in adopted strategies, the partners are now confronted with the critical question of whether to turn the Bulb’s Station into a start-up company in the food industry in the UAE.
Introduction
It was a January morning in 2017 when Adeeb Nami was engrossed in researching different career paths that he could embrace in the near future. He had just graduated from AUS in the UAE with a bachelor’s degree in business administration and a major in marketing. He could have started seeking entry-level positions in marketing at companies located in the UAE, where he had been living with his family for a long time, or in his country of origin, Iran. Yet, as an adamant believer in the value of higher education in shaping a person’s character in life, he did not consider embarking on a professional career at this point. Instead, he ambitioned to pursue his studies with a Master of Science in Innovation Management or a Master of Business Administration (MBA) at an educational institution in Canada.
After checking the application requirements of various universities, Adeeb had come to the realization that to be eligible for admission to a master’s programme he needed to have prior work experience. His thoughts drifted to a couple of jobs that he took up here and there while studying at AUS. He had done some volunteer work at the Emirates’ Festival of Literature and Sharjah Book Fair, and also was one of the business partners at the Bulb’s Station. As he continued exploring his career options, his phone buzzed with a message on the Bulb’s Station WhatsApp group. It was Khalid asking the question that Adeeb had dreaded answering for sometime now: ‘So, Adeeb, did you make up your mind? We really need to move forward with this now.’
The Bulb’s Station Ideation
The Bulb’s Station idea was born during the January 2016 study trip to Portugal organized by the Institute of Electrical and Electronics Engineers. Six undergraduate students from AUS, Omar AlAwadhi, Khalid Badri, Sultan AlAwadhi, Roudha Alleem, Sarah AlOnaizi and Salama AlFalasi, had a memorable experience learning about electrical engineering in different parts of the world. This trip also set the foundation for their practical knowledge and personal growth that went far beyond academic requirements. Since none of them had worked before, with the exception of Omar who had just started his employment with Dubai Electricity and Water Authority (DEWA), they were eager to face the challenges of the real world. Having become good friends, they wanted to start a professional activity that would unite them further and strengthen their friendship.
After endless discussions about how to bring an idea to life, they decided to open a booth that would sell something they all had a passion for: food. ‘We need something with a theme. What about our favourite foods?’ asked Sultan. ‘Let’s make homemade food! That should be fairly easy as we all live with our families,’ Roudha suggested. ‘My mother makes the best Waraq Enab!’ Khalid said with excitement. ‘As most of us are Emiratis, traditional Emirati food would be really great. And although you, Sarah, are a Saudi citizen, you’ve been in the UAE for so long. Moreover, you can certainly bring your personal touch,’ Salama added. ‘Yes, why not?’ Sarah replied, ‘In our house, we make amazing cheesecakes and our friends love them.’
During the meetings that followed, the friends focused on discussing some operational issues, such as where and when to open the booth, how to acquire the raw materials, what theme to choose, what to have on the menu, and how to price the items. One of the critical issues was to find a suitable name for the booth that would be pleasing and would serve as a way to catch customers’ attention. Many names that were initially thrown on the table, such as Dr Ice, Dr Freeze and Voltage, were heavily influenced by well-known heroic characters. The millennial demographics showed a lot of interest in Marvel and DC superhero movies, which were among the most popular movies and TV shows in today’s pop culture. Although these names were thematic and appealing, the team still wanted something more symbolic and unique.
‘I feel these names are not original enough. They do not say much about us. Anyone could come up with those names,’ Sultan said to his friends. ‘Yeah, I agree. We need something more personal; something that would say more about who we really are,’ replied Roudha. Since the majority of the group studied electrical or chemical engineering, with the exception of Salama who specialized in computer sciences, the word ‘bulb’ resonated well with them all. After some tweaks to the name, the ‘Bulb’s Station’ was finally selected as it best conveyed the story of their team to the outside world.
Exploring Different Options
The next key question was to decide where to operate the booth. Three options emerged as the most viable: Global Village, as a homemade business on Instagram, and AUS Global Day. The Global Village was one of the most popular entertainment venues and cultural attractions in the Emirate of Dubai. It brought together in a single location over 30 different nations to celebrate their cultural uniqueness as well as the cosmopolitan lifestyle of the residents in the UAE. People could visit a large variety of pavilions, such as China, Kuwait, Spain, Palestine, Iran and Russia, where food stall vendors skilfully exhibited their products to showcase the rich gastronomic traditions of their country of origin. The Global Village was a very attractive option because it was a festive hub full of different activities, including live concerts with Arab pop stars, stage shows, shopping arcades and thrill rides.
However, opening a booth in the Global Village also presented a number of problems. While the Bulbers did not have a definite price for renting in the Global Village, they assumed that it would be quite high, especially considering that they had no primary source of income. Moreover, this option required long-term efforts by the Bulbers. The Global Village operated for a period of over five months each year, starting in early November and closing in the beginning of April. During the other seven months, the Global Village was not operational due to high temperatures and elevated humidity in the UAE summer, when outdoor activities were kept to a minimum. Hence, this five-month commitment was deemed unrealistic for full-time university students.
Alternatively, opening an Instagram page and posting pictures there would be very simple, but creating awareness of the brand through followers could be quite complex. One example of a successful homemade business on Instagram was ‘She Burger’—a burger joint that had over 38,000 followers. In the bio section of their Instagram page, a mobile phone number was provided for customers interested in placing their orders during the business operating hours. She Burger delivered to the indicated location, although a pickup option was also available.
If the Bulbers were to follow a similar path, they had to begin by setting up an Instagram page and continue by building their brand to make sure word got out. This could be done through the use of hashtags, but it would be a slow and lengthy process. A ‘luck’ factor was also associated with this option; because it was a very saturated platform; it was difficult to ensure success via Instagram. Moreover, assuming that the brand had many followers, how would the delivery be done? Because each partner had to contribute with homemade food, they did not have a centralized hub where the food would be prepared and sent out for delivery. This was due to the fact that the Bulbers lived across different Emirates, with Roudha in Sharjah, Hamad in Ras Al Khaimah and the rest of them in Dubai.
Finally, there was the AUS Global Day possibility. Organized by the Office of Student Affairs and more than 1,500 students, the Global Day was an annual event that took place at AUS over two end-of-week days in the month of March. During these days, the AUS community and friends celebrated ethnic diversity and cultural heritage. There were many live performances representing the folklore of over thirty-two countries, such as India, Saudi Arabia, Pakistan, Libya, Nigeria, Afghanistan and Egypt. As proud messengers of their country of origin, students formed cultural clubs that received funding from the Office of Student Affairs to conduct shows, exhibitions and entertainment activities. It was a crowded time at AUS when students and guests gathered at the AUS Main Plaza to interact with each other and share their customs and traditions.
Different businesses could also operate during the event by renting a booth through the Emirati Club or the Gulf Cooperation Council (GCC) pavilion. Although none of the Bulbers were part of the board of either of these two student associations, they had many acquaintances in the Emirati Club. Omar took the initiative to approach the president of this Club to inquire about the process of renting a booth. He found out that the booths were booked on a first-come, first-served basis in exchange for fee. An agreement form had to be signed and a payment of AED 3,000 had to be made for a two-day booth rental. The booth would be made available day before the Global Day for decoration, etc.
After doing a cost-benefit analysis, the team reached a consensus to inaugurate the Bulb’s Station at the AUS Global Day on 24–25 March 2016. ‘I think it would be a great opportunity. When I go to the Global Day, I don’t know what to eat. I think homemade food will make a lot of buzz,’ Sultan said. ‘And each of us could invite friends from different schools and guests from outside campus. They would surely come to support us,’ Khalid added.
Bringing the Booth to Life
The time had come to brainstorm about the type of homemade food to be sold, along with a focus on meals or desserts, large portions or bites. Each Bulber had to assess and propose some signature dishes someone in their house (mother or housemaid) could prepare for the event.
If we want many options on the menu, we might need more people to help us. I was discussing the idea with my Emirati friend, Hamad AlAbduli, and he seems interested. He is also a Bachelor’s student of Mechanical Engineering at AUS. So, how about we add him to our team?
Roudha said. ‘I don’t think any of us really minds having more members. In fact, we would be all happy to have Hamad on board,’ Salama responded.
After additional deliberations, the seven Bulbers decided that the menu would include three main categories, namely, food, dessert and drinks (see Table 1). Since their primary target were university students, their offerings had to be less traditional and more relevant and trendy. Thus, 400 pieces of Waraq Enab and 400 pieces of Chocolate Oreo Truffles for each day of the event were cooked in Khalid’s house. Salama was in charge of Karak, while Sultan took care of three sweet dishes, namely, Nutella Cake (20 pieces), Gulab Jamun (150 bites) and Blueberry Cheesecake (200 pieces), which were cooked for both days.
The Bulbers also wanted to have a live cooking station with items that were easy to prepare on the spot. They decided that they would make Paratha Sandwiches and Virgin Mojito in front of the customers. The team intended to purchase ingredients that would suffice for some 260 Paratha Sandwiches and 100 Red Bull, 60 Sprite and 40 Oronamin C Mojito drinks. Since the Bulbers lacked practical experience in running a business, they relied on their intuition to set prices for their items on the menu. They did not want to sell cheap because homemade food required lots of effort that ought to be covered in the price. Yet, the food could not be too expensive, so that customers got a good value-for-money feeling too.
Bulb’s Station Menu on the Global Day
One week before the event, the Bulbers started planning their activities to purchase sufficient supplies to prepare and serve the dishes. As the level of stress increased, they re-evaluated their offerings and agreed that they needed additional sweet items on the menu to highlight their emphasis on desserts. That was when Adeeb, Sultan’s long-time family friend, was invited to provide assistance during the event on a volunteer basis. Moreover, Sultan knew that the Mini Caramel Cheesecake baked in Adeeb’s house was extremely popular with family and friends. With no hesitation, Adeeb’s mother offered to prepare two trays of Caramel Cheesecake of 150 mini bites each.
All the food ingredients were bought from the Union Coop and the Fruit and Vegetable Souq in Awir. The Union Coop was known for its very large branches, where a wide variety of products could be purchased at lower prices compared to other stores, such as Spinneys. The three female partners, Roudha, Salama and Sarah, visited the Union Coop and spent around AED 1,250. Since fruits and vegetables at the Souq in Awir, which were imported from many countries around the world, were sold in bulk, they had a high turnover rate and were fresher than those in supermarkets. The male Bulbers, Khalid, Omar, Sultan and Hamad, went to the Souq and acquired fruits and vegetables for a total of AED 1,250. Additionally, an amount of AED 200 was paid for the dry ice that Omar ordered from the Gulf Ice Factory and Cold Storage and which was to be put in the Mojito cups for a smoky and chilly taste.
Items such as spoons, forks, plates, bowls and cups, were bought from the FalconPack’s store located in Nad Al Hamar in Dubai. As FalconPack sold top quality aluminium and plastic products and containers with a diversity of colours and prints, its prices were higher than those of other non-specialized stores, like Carrefour or Lulu Hypermarket. The whole group visited FalconPack and agreed collectively on the cutlery to be purchased, which cost around AED 850. Also, for a price of AED 80, Roudha was able to proceed with her idea of ordering 200 stickers with their logo printed on them to put on the cups. Designed by Roudha’s cousin, the logo had an image of a black bulb with ‘Bulb’s Station’ written in green and yellow.
As an underlying principle, all the Bulbers had to be together in the preparation process to share their opinions, learn from each other and enjoy the whole experience. Their agreement was that all the costs incurred by individual members against a receipt and covered from their own pocket money would be returned from the revenues made during the event. Subsequently, the distribution of potential profits would be made equally among the seven Bulbers. Adeeb was not included in the common cost and profit estimations as he acted in the capacity of a volunteer. Yet, he also bore the cost of the Mini Caramel Cheesecakes that his mother made.
Bulb’s Station on the Global Day
As the AUS Global Day approached, each Bulber started to advertise the booth using word-of-mouth techniques, sending invitation messages to their friends, talking to acquaintances about their offerings and posting information on their individual Instagram pages. The day before the event, the Bulbers decorated the booth to make it look attractive. Consistent with their logo, the team decided to decorate the booth with several bulbs projecting different fairy lights. To prepare this décor, Omar, Khalid, Hamad and Sultan went to Dragon Mart where they bought 4 fairy lights for a price of AED 150 each and 4 bulbs for AED 80 each.
One disappointment that the Bulbers had to deal with early on was related to the location of their booth. Their a priori understanding was that the Bulb’s Station booth would be located in the Emirati Rotunda, in the middle of the AUS Main Plaza, surrounded by the rest of the Gulf Cooperation Council (GCC) rotundas. However, they found out that the booth was located in a very unremarkable place, not in the middle but on one of the sides, and was slightly hidden from the main rotunda. Although this was an issue of concern, the team decided to ignore it and focus all the energy on making their first experience a success.
The AUS Global Day was inaugurated on a Thursday afternoon under the patronage of His Highness Dr Sheikh Sultan bin Mohammed Al Qassimi, Supreme Council member, Ruler of Sharjah and President of AUS. The Bulb’s Station was buzzing with activity, with each Bulber assuming a different role. Sultan, Khalid and Adeeb were selling the items that were cooked in their homes, while the other members were in charge of preparing dishes on the spot as per incoming orders. Roudha and Sarah were making the Mojito drinks, while Salama and Hamad were preparing the Paratha Sandwiches. Omar was mainly responsible for attracting customers’ attention and directing them to the booth. Many people who visited the Bulb’s Station had visibly enjoyed the homemade food and came back to share their positive feedback.
However, at the end of the event, menu items remained unsold. About 300 pieces of Waraq Enab, 200 pieces of Chocolate Oreo Truffles, 100 Mini Caramel Cheesecakes, 10 Nutella Cake pieces, 110 Gulab Jamuns and 135 pieces of Blueberry Cheesecake were left over. Based on the amount of ingredients that remained after the event, the Bulbers estimated that approximately 160 Paratha Sandwiches remained unsold. As for the Virgin Mojito, it proved to be an absolute success as it was sold out.
The general philosophy apparent in many Muslim cultures, which also applied to the mentality of the Bulbers, was to prepare excess food rather than little food. Also, consistent with the Arab principle of generosity, the team offered all the unsold dishes to university security guards, CleanCo personnel, municipality gardeners and various passersby. Roudha gave out the leftover parathas to workers at construction sites near her house. To avoid wasting the supplies that remained after the Global Day, the Bulbers stored the excess cups, cutlery and undamaged decoration items for future use.
Some unexpected problems arose during the event itself. Some twenty minutes after the Bulbers opened their booth, a representative of the Emirati Club informed them that they had been denied permission to sell Karak because the club had an agreement with another booth allowing them to be the sole sellers of Karak. Although they had over 180 cups of tea, they managed to sell only 10 cups before they had to remove it from the menu. Additionally, they often found themselves out of change to give their customers, having to run around requesting other vendors. Nonetheless, the Bulbers learnt many lessons from their experience at the Global Day and were eager to apply them by setting up another stall at the next major event at AUS.
Adjustments to the Menu
The next event at AUS was the UAE National Day celebration, which took place on 28–29 November 2016. After the arrival of special guests and dignitaries, the National Anthem was played on the main stage and the celebration continued with different cultural activities, such as singers’ performances, poetry recitals and traditional games and competitions. Similar to the Global Day, any food and merchandise vendor was allowed to rent a booth for a price of AED 2,500 for both days of the event. Yet, due to its thematic focus and smaller scope, the UAE National Day at AUS did not typically attract large crowds from outside the university campus.
The Bulb’s Station now had nine full-time partners with the formal addition of Adeeb and Meera AlShammali. Having accompanied the other six on the Portugal trip, Meera was an Emirati undergraduate student in Electrical Engineering at AUS who resided in Dubai with her family. This implied that costs and potential profits from the event would be equally distributed among all the nine members. Keeping the event’s theme at the forefront of their menu, the Bulbers wanted to preserve their signature dishes but also innovate by extending the range of their food and dessert offerings. They adjusted the menu to make it more representative of the Emirati culture and reflect the spirit of the UAE National Day as a tribute to the country’s culinary traditions (see Table 2). Yet, to make their booth’s items more affordable and attractive to potential visitors, the Bulbers decided to decrease their prices.
Bulb’s Station Menu on the UAE National Day
The Dango, Balaleet, Cupcake Fudge and Nutella Cake were all prepared in Sultan’s house. There was one hot pot each of Dango (85 bowls) and Balaleet (100 bowls) for the first day, and 10 pieces of Cupcake Fudge and one tray of 20 pieces of Nutella Cake for the second day. Besides the Mini Caramel Cheesecakes that were made in the same quantity as for the Global Day, Adeeb’s mother also prepared twenty-four pieces of Mini Kunafas for each day of the event. Khalid’s household cooked 200 pieces of Waraq Enab and 150 pieces of Chocolate Oreo Truffles for each of the two celebration days. Hamad’s aunt made 750 pieces of Tamr Mdabbas with dates from her house and ordered from her friend 150 pieces of Khanfaroosh that cost the Bulbers AED 200. For each day of the event, Salama prepared three flasks of Karak, forty cups each, and Sarah made two flasks of Arabic Qahwa. Although each flask of Qahwa consisted of about sixty full cups, it was an Arab tradition to serve Qahwa in a half filled cup.
A total of 250 Samboosas were bought from a store in Ras Al Khaimah for AED 50, although the sandwich itself (made of one Samboosa) would have to be prepared on the spot. Around fifty-five Hot Dogs could be made with the six packs of sausages and eight packets of bread that were purchased for the event. Just like on the Global Day, the Paratha Sandwiches and Virgin Mojitos would be made per order. Sarah and Roudha were to be in-charge of Mojitos, while Salama and Adeeb prepared the Paratha Sandwiches, and Hamad was to look after the Khanfaroosh and Tamr Mdabbas. Approximately 60 Parathas and 150 Mojitos (eighty with RedBull, forty with Oronamin C and thirty with Sprite) could be made with the ingredients bought.
The women and men went in separate groups to purchase the ingredients, which cost around AED 3,650. Cutlery worth AED 750 was bought and four damaged fairy lights had to be replaced for AED 600. While keeping the same theme and decorations (see Exhibit 1), the Bulbers took more precautions. Prior to the National Day celebration at AUS, they provided the Emirati Club with a list of all the items they were planning to sell to avoid problems like the Karak incident. They also asked for permission to bring a stereo to play traditional Emirati music, but were not allowed. This time, the Bulb’s Station stall was located in the centre of the AUS Main Plaza.
Bulb’s Station on the UAE National Day
Despite the larger variety of items, the Virgin Mojito was once again the bestseller, and by the end of the day the drink was sold out. Other fast-selling dishes were the Nutella Cake and the Mini Caramel Cheesecake as many customers who visited the booth asked for those desserts specifically. This popularity resulted in an excess of only five pieces and thirty bites of Nutella Cake and Mini Caramel Cheesecake, respectively. As far as the other items were concerned, the sales were less encouraging. At the end of the event, as many as 700 pieces of Tamr Mdabbas, 240 pieces of Waraq Enab, 140 pieces of Chocolate Oreo Truffles, 90 pieces of Khanfaroosh, 28 pieces of Mini Kunafa and 6 pieces of Cupcake Fudge were left over.
The Bulbers also experienced some unexpected problems, such as the shortage of ingredients for dishes that were made on the spot. In spite of the abundance of food and dessert offerings on the menu, customers were more inclined to opt for Paratha Sandwiches. Cheese for the Parathas was missing on the second day, forcing Sultan to rush out to buy more cheese for AED 10. This hindered sales, and five Parathas topped with Chips Oman and the same number of sandwiches topped with Cheetos remained unsold at the end of the event. The Hot Dogs and Samboosa Sandwiches stood completely untouched by the end.
The items that were cooked in Khalid’s house were delayed by a couple of hours because he was stuck in traffic when driving from Dubai to Sharjah. Three new dishes that were stored in hot pots, Balaleet, Khanfaroosh and Dango, created additional challenges to the Bulbers. They could not be served cold, and the hot pots took up a lot of space on the front of the booth. To create some space and avoid clutter, the partners decided to remove these items from the menu on the second day of the event. Therefore, only fifteen bowls of Balaleet, twenty bowls of Dango and ninety pieces of Khanfaroosh could be sold during the first day. As before, all the remaining food was not wasted but rather given out to needy people. It was agreed that Roudha and Salama would take the food to distribute it to workers on different construction sites near their houses.
The two traditional Arab drinks turned out to be very popular with customers as all the flasks of Karak and Qahwa were entirely emptied. However, this success did not come without obstacles. Although the Emirati Club did not reject any of the menu items that the Bulbers planned to sell, once again they were approached during the event and asked to not serve Karak. This time, the group decided to take the risk and ignore this request on the grounds that they were not informed ahead of time. Another inconvenience was that many customers assumed that Qahwa was for free as a hospitality gesture. Since the Bulbers were too shy to ask for money, they managed to sell only 120 Qahwa cups while giving out the rest for free.
Some other stalls had speakers and played traditional music, without having previously secured permission from the Emirati Club. Also, some customers commented that the Bulb’s Station prices were too high, being unaware of the reduction in prices that had taken place after the previous event. The Bulbers often had to engage in conversations with buyers to clarify the overall concept of homemade food and its distinctiveness compared to more conventional food options.
Food Industry in the UAE
Over the past decades, the growth in the UAE food and beverage industry was driven primarily by the increase in the number of people living in the country. A large variety of food outlets of different categories, ranging from fast food to high end, opened across the seven Emirates to cater to the tastes and preferences of a culturally diverse population (Spraggon & Bodolica, 2014). Having reached over 9.5 million residents in 2016 (World Economic Forum, 2016), the UAE may well continue to represent a positive marketplace for numerous players in the industry. According to a survey conducted by KMPG, there were many encouraging signs of a robust future demand for food and beverage offerings (Scott, 2016a). In particular, the survey findings indicated that the majority of respondents did not change their habit of eating out, with a third of people dining out more frequently and two thirds of respondents spending larger amounts on meals and takeaways in 2016 than before.
Food sales in the UAE were expected to grow at an average rate of 7.3 per cent to reach a total of AED 61.3 billion by the year 2020 (Saseendran, 2016). Many companies were optimistic about the future opportunities in the industry that could be triggered by the dynamic tourism sector and the hosting of regional mega events, such as the World Expo 2020 in Dubai and the 2022 World Cup in the neighbouring Qatar. During the period between 2017 and 2020, the number of food outlets in the UAE was set to increase from 16,200 to over 19,000 (Nair, 2016a). Tablez, the food and beverage division of Lulu Hypermarket, was one of the key players that aimed to consolidate its presence in the industry by expanding to other locations and signing new franchise agreements with renowned international brands. Expanding on the twenty-nine food outlets that it presently operated in the country, including London Dairy, Bloomsbury’s, Sugar Factory and Pancake House, Tablez ambitioned to open over 40 new outlets by the end of 2020 (Scott, 2016a). Additionally, further investments would be made to conduct research on the industry, identify the gaps—particularly with regard to underserved consumer nationalities and, bring more franchises into the market.
Nonetheless, other forecasts were less optimistic suggesting that the current level of consumer demand remained largely insufficient for an oversaturated food industry in the country. The passion for casual or fine dining was an essential characteristic of the social fabric and lifestyle in the UAE, particularly due to extended periods of extremely hot weather when eating out in malls and restaurants became one of the few options residents had for socializing. Despite this fact, the abundance of food outlets and the increased rivalry for footfall among service providers induced many experts to question the sustainability of the industry in the long run. According to some estimates, over 20 per cent of food and beverage companies were likely to close by the end of 2017 (Scott, 2016b). Several challenges made the competition game more intense for food vendors in the UAE, such as the scarcity of attractive locations to open new outlets, growth in the number of price-sensitive customers, rising costs of raw materials and supplies, augmented expenses related to commercial rent and high turnover rates of skilled staff (Nair, 2016a; Scott, 2016a).
Moreover, the traditional business model in the local industry differed from the model of home-operated food business, where technology and online applications played a far more important role (Nair, 2016b). Many food start-ups in the UAE began on Instagram, focusing on pickups and deliveries, and as soon as there was a stream of followers, they launched a restaurant or café. This was also how Hind Al Mulla had originally founded Home Bakery in 2011. After creating a buzz on social media, her baking sparked a reputation for irresistible desserts, encouraging her to open a café in the Galleria Mall in Dubai. In the same vein, having secured a following of repeat customers with authentic homemade burger recipes, the founder of Yaweely Burger opened a brick-and-mortar store in Nadd Al Hamar in Dubai. The strategies of these businesses evolved over time from online home-based orders to the physical presence of customers in their outlets.
To identify and evaluate their dining out options, customers in the UAE often relied on popular websites, such as Zomato. These websites provided the opportunity to make a targeted search for a specific food outlet, read customer reviews and post comments that were visible to other users. The information was structured into different categories to facilitate the search process and subsequent selection, with no specific category for homemade food in particular. Most commonly, the available food outlets were clustered into groups based on type (e.g., cafés, quick bites, cafeterias, food courts, dessert parlours, bars, fine dining, bakeries and lounges) and price level (e.g., high-end, medium-end or low-end). Other categories referred to food type (e.g., fancy, healthy or fast-food), cuisine (e.g., Italian, Indian, Chinese, Arabian, Afghani, Thai, Japanese and many more) and location (i.e., outlet branches across different cities and emirates in the UAE). There was a noticeable emphasis on the brand name of the food providers, with large franchises, such as the Cheesecake Factory and Texas Roadhouse, being very popular and garnering lots of customer reviews.
Due to its cosmopolitan resident population, the UAE had one of the most diverse and complex food industries in the world. People in the country were very receptive to new dining concepts and were willing to experience various types of high quality food. It was widely acknowledged that the average household in the UAE had a higher level of disposable income and a greater propensity to spend on premium and gourmet products compared to typical households in North America, Western Europe and most developed Asian nations (Saseendran, 2016). At the initial entry phase, any start-up business in the local food and beverage industry could bet on the novelty effect to pull in curious customers. Entrepreneurs aiming to enter the market with the concept of homemade food had to examine what connotations the ‘homemade’ aspect evoked in people’s mind. To succeed well beyond the start-up phase, the key question for entrepreneurs remained whether consumers would be willing to pay a premium price for homemade food offerings.
Bulb’s Station Future: What’s Next?
Based on the two experiences they already had, the Bulbers were now considering different opportunities for the future. Closing the booth, operating it at the next AUS event or turning the Bulb’s Station into an entrepreneurial venture were the three most obvious options. However, reaching a consensus with so many members who were at different stages in their professional careers was a challenging task. In June 2016, Omar, Salama, Sarah and Khalid had already graduated from AUS. Omar continued his employment with DEWA and had simultaneously enrolled in the masters’ programme in Electrical Engineering at AUS. Salama accepted the position of senior programmer in a local company and aimed to get a masters’ degree in information technology, while Sarah was still looking for a chemical engineering job in the country. Khalid worked at the Mohammad Bin Rashid Space Centre in Dubai and sought to obtain an MBA or a master’s degree in the field of engineering management. By the end of the year, Adeeb had also joined the ranks of fresh AUS graduates and was exploring his career options.
From various informal discussions that the Bulbers had held, it seemed that none of them wanted to shut down the booth. Many were inclined to return to the 2017 edition of AUS Global Day by decreasing the variety on the menu and focusing on the bestselling dishes. The most adamant defenders of this option were Hamad, Sultan, Roudha and Meera, for whom this practical activity would represent a valuable break from their ongoing studies. Khalid, however, wanted to develop more sustainable long-term goals for the Bulb’s Station by turning it into a start-up company in the local food industry. He argued that opening a non-seasonal café in a premium location in Dubai provided more stability because it could be visited at anytime and the location’s attraction could be used as a strategy to pull in customers. This would require a large initial investment to cover for the cost of space rental, furniture, advertising and staff recruitment. The preparation of homemade food would shift from multiple households to a single location, meaning that the newly hired chefs would need to be trained in every household to get the recipes right prior to the café launch.
In the meantime, the Bulbers had the option to register the ‘Bulb’s Station’ name in Dubai’s Economic Department for as little as AED 1,000. They could also apply for the Intelaq license, which was released by the Department of Economic Development in Dubai to support the growth and transformation of home-based businesses into small and medium-sized enterprises. Once the Intelaq license was approved and granted in exchange of an annual fee of AED 1,000, the name of the company was also registered at the same time. The only restriction to obtain this license was that the Dubai-based business had to be fully owned and managed by an Emirati citizen. In this case, the Bulbers had to formulate a clear business plan and decide who would formally own and run their small-sized venture.
Furthermore, Omar informed the team that he was recently approached by both Sheraa and GADHA initiatives with an offer of potential collaboration to provide technical assistance with finding sponsorship and drafting long-term plans for the Bulb’s Station start-up. Established in early 2016, Sheraa was the Sharjah Entrepreneurship Centre located on the AUS campus that aimed at supporting aspiring entrepreneurs in the UAE to pursue their business ideas, develop action plans and launch their ventures by facilitating access to funding and industry networks. Designed to serve the community of Ras Al Khaimah and the rest of the country, GADHA Initiatives provided a structured platform for volunteers to gather with the intention of helping young Emirati talents start their own businesses. Since its inception in 2015, GADHA had organized over twenty governmental and private events, such as Ramadan Nights Exhibition and IMRAAH Conference. Both entrepreneurial entities had noticed the Bulb’s Station at the 2016 AUS Global Day and believed there was some potential.
Khalid and Omar were very enthusiastic about the prospect of starting a café in Dubai, while others seemed more sceptical. In a meeting that was organized at the end of December to decide about the future of their booth, several Bulbers voiced their concerns. ‘We are still students, we don’t have a primary source of income yet,’ Sultan said. ‘It will be very difficult for us to gather money for the initial investment in our business.’ Hamad nodded in agreement and added: ‘Moreover, if we initiate a legal partnership with so many people, there would be barely any profit for any of us individually.’
The discussion went on and on, without any sign of consensus until Khalid proposed:
We brought the Bulb’s Station to life together and we all care about its future. Let’s take a couple of weeks to seriously reflect on our priorities and estimate the commitment that each of us can make to the venture. We will then reach out to each other with our individual decisions and take it from there to see where we stand.
On this early January 2017 morning the time to make the final decision had come. Adeeb caught himself staring at Khalid’s message on the Bulb’s Station WhatsApp group and rereading it multiple times. His head swirled with so many contradictory arguments in favour and against his future entrepreneurial involvement with the Bulb’s Station that he felt completely lost. All of a sudden, as if enlightened by some very encouraging thought, he took his cell phone and started to type….
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to the research, authorship and/or publication of this case.
Funding
The author(s) received no financial support for the research, authorship and/or publication of this case.
