Dubai residents are powering hospitality growth as tourist traffic dips, says McGettigan's chief

Dubai: Even as flight disruptions and jet fuel shortages unsettle travel across the region, Dubai’s community-driven hospitality venues are proving unexpectedly resilient — a sign, says McGettigan’s owner Dennis McGettigan, that the emirate’s strong resident customer base is helping steady the food and beverage sector through another spell of uncertainty.

“There is no question that footfall has softened since February 28, and you can feel a shift in consumer sentiment,” McGettigan, founder and CEO of Vision Hospitality, told Gulf News. “People are a bit more cautious and less spontaneous with their spending.”

Vision Hospitality’s other brands include McG’s by McGettigan’s, Brasserie by McGettigan’s, Bla Bla by McGettigan’s and more.

Yet the slowdown has not been uniform. While international visitor traffic has sharply declined at some venues, long-established neighbourhood outlets such as McGettigan’s JLT have remained comparatively stable, underscoring how heavily Dubai’s hospitality market has pivoted toward resident loyalty when tourism is disrupted.

In this interview with Gulf News, McGettigan explains why community-led venues in Dubai are proving resilient, how legacy brands like McGettigan’s are weathering the turbulence, and why the UAE hospitality market is better prepared today than during Covid.

Q: What has been the immediate impact on footfall and consumer sentiment across your venues since February 28?

A: There is no question that footfall has softened since February 28, and you can feel a shift in consumer sentiment. People are a bit more cautious and less spontaneous with their spending. That said, we are seeing strong resilience in community-driven locations such as JLT, which have a consistent resident base.

We are also responding quickly by introducing more value-led offers across certain venues, whether that is competitive pricing, expanded breakfast options, or accessible entry points to food and beverages. At the same time, we relaunched Bla Bla right in the middle of all this, and the turnout and energy on the night showed that people still want to go out and enjoy themselves.

Q: With airspace disruptions and flight uncertainties, how exposed is your business to international visitor traffic versus residents?

A: We do not track it in a strict split across the portfolio, but at Bla Bla for example, we have historically seen more than 60 per cent of transactions coming from international cards. In the past week, we have seen that drop at times to around 14 per cent, which gives you a sense of how travel patterns are shifting. This is where having a strong resident base is important, and we are actively focusing on it across the business.

Q: Are certain locations or formats within your portfolio more resilient than others right now? Perhaps the legacy outlets?

A: Yes, the more community-driven venues are definitely more resilient. Locations that serve a strong residential catchment, like JLT, tend to hold up better because they are part of people’s regular routines. Legacy outlets like McGettigan’s also benefit from that loyalty and familiarity. People know what they are getting, whether it is the atmosphere, the sport, or the food, and consistency becomes very important during uncertain periods.

Q: On the supply chain, how exposed are you to imported ingredients, and are you shifting towards more local sourcing now?

A: Like most operators, we work with a mix of local and international suppliers, depending on what is required. The key for us is flexibility and ensuring we work with reliable partners. Where needed, we are also being more reactive with our menus, trimming certain items based on ingredient pricing while keeping the overall offer strong. The focus is on maintaining consistency in the guest experience and quality while carefully managing costs, rather than making any major structural changes.

Q: How are you managing costs?

There is always some movement in pricing during periods like this, but so far it has been manageable. Our approach is to stay disciplined, keep a close eye on costs, and make sure we are offering value to the customer without compromising on quality. That balance is key, especially when consumer confidence is slightly lower.

Q: Do you think the UAE F&B industry is better equipped to handle this challenging situation now, post Covid?

A: Yes, absolutely. Covid forced the industry to become more disciplined and more agile. Operators are more aware of their numbers, more careful with costs, and quicker to react. There is also a level of confidence now that we did not have before, because we have been through something much more disruptive and come out the other side.

Q: What are the first financial levers you pull in a crisis like this, cost cutting, renegotiating rents, pausing expansion?

A: The first priority is always to protect the core business. That means managing costs carefully, reviewing efficiencies, and making sure everything we are doing makes commercial sense. It is not about cutting for the sake of it, it is about being smart and measured. We are in regular conversations with landlords around flexibility. Some have been very supportive, which allows us to lean into those locations, increase customer offers, and strengthen the overall proposition. In other cases, that support has not come through yet, but we are hopeful that will evolve so the pressure is shared more evenly across the industry.

Alongside that, we continue to focus on delivering strong value to customers where the support allows it, while managing supplier terms, staffing efficiency, and the timing of capital spend. If there are expansion plans, we reassess the pace, but we do not necessarily stop if the opportunity still makes sense.

Q: How does the current crisis compare to the shock of Covid in terms of business impact? And what lessons from Covid are you applying now?

A: Covid was a completely different level of disruption because everything stopped. This is more about uncertainty and confidence. The market is still active, but people are a bit more cautious. The main lesson from Covid is to stay calm, stay focused on the numbers, and communicate clearly. Overreacting rarely helps. The businesses that stay measured usually perform better over time.

Q: On the Bla Bla acquisition, the venue is fast becoming a major hotspot for Dubai visitors and residents. Does the war affect the plans you may have had for the venue?

A: We had agreed the deal before the situation escalated, and once we commit to something, we follow through. Naturally, you stay mindful of market conditions, but the long term plan for the venue has not changed. The relaunch itself was a strong signal of that. Despite everything going on, we saw a great turnout and very positive feedback, which gives us confidence in what the venue can become again.

Q: What prompted the acquisition? And now that it has been rebranded as Bla Bla by McGettigan’s, what are the plans you have for the rebranded venue?

A: It was the scale of the opportunity. It is a big venue with a lot of potential, and it aligns with what we do well across hospitality, entertainment, and nightlife. The focus now is on reintroducing it properly, strengthening the experience, and building consistent footfall. That means better programming, stronger entertainment, and making sure the overall experience connects with both residents and visitors again.

Q: Are you pausing any additional expansion plans you had for this year, or do downturns actually create opportunities for growth and new locations?

A: We look at each opportunity on its own. If it makes sense and the numbers stack up, we will still move forward. In many cases, periods like this actually create opportunities because the market becomes more realistic. So we are not stepping back from growth. If anything, we are just being more selective and more strategic about it.

Q: How are employees responding?

A: “The most important thing is communication,” McGettigan said. “We make sure we are present, honest, and keep everyone informed.” Successful launches such as Bla Bla’s reopening have helped keep morale high across teams.

Q: What advice would you give hospitality entrepreneurs?

“Stay close to your numbers, stay practical, and do not panic,” he said. For newer operators, especially, he says resilience is the defining trait. “If the fundamentals are right and you are willing to adapt, you can still come through it.”

Q: What will separate F&B operators who survive this rough patch from those who don’t?

“It comes down to discipline and clarity,” McGettigan said. “The operators who know their numbers, understand their customer, and can adapt quickly will be the ones who come through stronger. At the end of the day, it becomes survival of the fittest.”