I posted few days ago on how the average price per 1 square meter in Beirut is over 3000$ and how Beirutâ€™s average rent was $1,872 for a 150-square-meter apartment, higher than the Arab average of $1,526 per month. [Link]
I was also told yesterday that renting a 200m2 place (+ terrace) at the newly open Zaitunay Bay costs at least 1 million dollars a year. Let’s assume the price is exaggerated and say a restaurant named X pays 750,000$ a year for a 150m2 place that can fit 80 people.
750,000$ means 62,500$ a month and almost 2000$ a day.
- If a meal costs on average between 30 and 50$ at restaurant X, it will need between 40 and 70 customers EVERY day to break even.
- This will only cover the rental fees without taking into consideration wages, maintenance and operating fees etc…
Given that Zaitunay Bay won’t be working that well during the winter season, and that I’ve never seen a restaurant full in the three times I went already, I don’t know how restaurants will profit from opening there.
Update: I spoke to Ziad Kamel, Founder/CEO of the Alleyway Group, and Treasurer of Syndicate of Owners of Restaurants in Lebanon, and he told me restaurants at the Zaitunay bay pay approximately $400-500K per year.