The story of Mahmoud Bartawi and his brand, Under500, offers a blueprint for budding entrepreneurs eyeing the health-focused dining sector. Known for his innovative approach and knack for spotting market opportunities, Mahmoud Bartawi’s journey reveals valuable lessons in resilience and adaptability. Recently, he shared insights into his entrepreneurial path, his approach to identifying market gaps, and his philosophy on business growth and resilience.
How did Under500 begin, and what challenges did you face starting out?
Nearly a decade ago, I realised there was a shortage of accessible, calorie-conscious meal options. I initially sought partnerships with established healthy food brands to franchise their model, but even options like Subway turned down my proposals due to my limited background in the F&B industry. Undeterred, I decided to build something from scratch.
I launched Under500 in 2016 with a vision to offer meals capped at 500 calories, catering to an increasingly health-conscious market. Our early success was bolstered by an experienced co-founder, and soon we expanded beyond the UAE, setting up franchises in Saudi Arabia, Iraq, the UK, the US, and Kuwait. Though we began with a traditional franchise model, the arrival of dark kitchens was transformative.
What is a dark kitchen, and how did it impact your strategy?
Dark kitchens, or cloud kitchens, were a game-changer, essentially allowing “franchising 2.0.” These kitchens enabled us to reach new markets without the high costs of setting up physical stores, which was particularly beneficial in areas with expensive real estate. By partnering with dark kitchens, we could rapidly expand our customer base without committing to a physical dining space. This concept revolutionised our strategy, allowing us to grow efficiently in a competitive industry.
What advice do you have for new entrepreneurs on securing their first customers?
Validating your product early on is critical. With Under500, I started by hosting a food tasting at home, inviting friends to sample the menu and provide feedback. My advice: start with a basic product prototype, offer it for free, and include your contact details. If even a few out of ten people return with interest, you’ve likely found something viable.
Equally important is establishing a feedback loop. Listening to customer feedback, refining your offering, and developing a solid marketing plan are essential steps. Once your concept is validated, scaling becomes the focus. You’ll need to improve efficiency, reduce costs, and develop processes to grow sustainably.
The food industry is highly competitive. How did you identify market gaps and differentiate Under500?
The F&B sector is indeed crowded, with established brands and varying consumer tastes. My advice for identifying market gaps is to study food delivery platforms like Deliveroo and Uber Eats. These platforms provide insights into consumer preferences, from vegan options to popular protein choices, which can help you identify emerging trends and opportunities.
Differentiation is vital. Begin with a broad menu, then refine it based on customer feedback. For Under500, we crafted signature dishes that helped establish brand recognition. If your menu is too generic, customers may not remember it; by focusing on standout items, you build a unique identity.
Sales and marketing are crucial for startups. How should food entrepreneurs approach these areas?
A common pitfall for new businesses is prioritising operations over sales and marketing. Regardless of product quality, you need a dedicated strategy for market entry. The F&B industry is fiercely competitive, so brand awareness is crucial.
For those starting out, I recommend developing a clear marketing strategy. Without understanding your market, you risk blending in with the competition. Collaborating with delivery services and food influencers can amplify your brand’s visibility.
Do entrepreneurs in the UAE have the resilience required for startup success?
Patience and resilience are common, but time investment can be lacking. A startup demands personal sacrifice, which is why balancing a full-time job with launching a business is challenging. It’s akin to having two full-time jobs, not just a side project.
Competing with fully committed founders is difficult if you’re not equally invested. Understanding the competition, the market, and thoroughly researching the landscape are crucial before launching a product. Documenting insights and market trends can provide clarity and support better decision-making.
What are the key factors to consider before starting a food business?
Research is paramount. Observe local restaurant types, their price points, and customer popularity. For instance, if healthy options are scarce or high-priced, that’s an opening. Investigate food trends, create a unique concept, and test market interest.
With dark kitchens, you can trial your product on delivery platforms before committing to a brick-and-mortar space. Innovation—whether through product evolution or marketing techniques—is essential. The food industry evolves constantly, and adaptability is key.
Mahmoud Bartawi ‘s journey from founding Under500 to its acquisition by Kitopi underscores the importance of adaptability, market insight, and perseverance in business. His advice to entrepreneurs highlights the necessity of product validation, consistent differentiation, and a strong focus on customer feedback. From Bartawi’s experiences, it’s evident that a successful venture requires more than just a good idea; it demands unwavering commitment, market knowledge, and a readiness to embrace innovative trends like dark kitchens to stay ahead.
