Shisha Is the Most Valuable Player for Thousands of Bars and Cafés – New Research Shows

AIR Group Limited, the world’s largest producer of shisha molasses, owner of the famous Al Fakher brand and the inventor of the OOKA, the world’s first charcoal free pod-based shisha system, has released new research on the role of shisha in microbusinesses such as bars and cafés in the Middle East, Europe and the United States.

The study involved hundreds of interviews with bar, restaurant and café owners and managers in the UAE, Saudi Arabia, Germany, Spain and the US.

On average, circa 8 in 10 of the businesses surveyed identified shisha as the highest margin product item in their venues.

According to Ronan Barry, Chief Corporate Affairs Officer of AIR Group, “This shows us that shisha is among the most equitable fast moving consumer goods (aka FMCG’s) in the world. In most FMCG and lifestyle product categories the majority of the value accrues to the brand owner with some scraps left over for the broader value chain. But in shisha, the value is more equitably distributed with the lion’s share going to the smallest businesses in the chain, those who serve the experience to the consumer.”

“We have long suspected that shisha is likely the Most Valuable Player (MVP) in the hospitality sector. These businesses enjoy margins on shisha of up to 95%, compared to about 5% on average in food.”

There are over a hundred thousand hospitality venues serving shisha and according to the sample surveyed by AIR, if these businesses did not serve shisha, their very survival would be in doubt. Almost half of survey respondents would close their doors if they were unable to offer shisha.

According to Garth Beer, who manages a shisha catering business providing shisha service to dozens of bars, restaurants and night clubs, “Shisha plays a critical role in drawing customers into the venue and in keeping them there. In some cases, its ‘come for the shisha, stay for the food and drink’ while in others its ‘come for the food, stay for a shisha’ and that the after-dinner shisha can be the difference between a profitable table and a non-profitable table.”

However, the boom of shisha remains unavailable to a majority of bars and restaurants due to the use of charcoal to heat the molasses and generate the cloud for the customers to enjoy. Charcoal is both a fire hazard and a source of toxic chemicals in indoor environments, requiring significant investments in fire safety and ventilation. AIR’s newest innovation, a revolutionary charcoal free, pod-based shisha system offers the opportunity for more microbusinesses to reap the benefits of shisha services because it removes charcoal and side streams smoke entirely, leaving a much cleaner shisha cloud for the consumer to enjoy. Already OOKA has been embraced by almost 250 bars and restaurants in Germany and in the UAE.

According to Mario, General Manager of a premium night club in Dubai “We, regrettably, had to exclude shisha from our club due to the smoke and fire safety concerns even though guests have been asking for it.

“We’ve had OOKA for a few months now and the feedback from our customers is fantastic. We’re on track to have a record season and it’s clear that OOKA will be a major contributor to that.”

AIR will continue to work with hospitality businesses around the world to support them in adopting shisha and OOKA and also in supporting the training of their staff to ensure that they can confidently offer the best customer experience in every serving.

About AIR (ADVANCED INHALATION RITUALS)

AIR is the market leader in the $19 billion global shisha market, with an aim to provide superior physical, emotional and mental benefits through inhalation. Launched in 1999 and headquartered in Dubai, the business has a multinational presence in over 100 countries across the UAE, Europe, North America, India, and Africa.

AIR holds 47% of the shisha category market share in the markets it is present it and is the leading business in a market set to grow to $22 billion in 2026. Its portfolio of companies includes Al Fakher, the world’s leading shisha brand; Hookah-Shisha.com, the world’s number one e-commerce platform for hookahs and shisha; Shisha Kartel, a Dubai-based shisha manufacturer; and Shisha.com, a global online community of shisha and hookah users. Advanced Inhalation Rituals’ science program, conducted in partnership with independent accredited laboratories, enables the development innovative products that combine centuries of tradition with cutting edge innovation to minimise harm and maximise enjoyment for millions around the world. The business has consistently outperformed competitors growing at 3x the market rate over the last 10 years, due to heavy investment in innovation, product, and user experience.

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