New hospitality platform Mezza has begun operations in the United Arab Emirates (UAE), offering upfront capital to restaurants in exchange for future food and beverage credit.
The platform is launched at a time when restaurant operators in the UAE are searching for different ways to sustain guest numbers and repeat visits, according to the company’s press release on Zawya.
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Mezza focuses on independent venues and multi-restaurant groups and aims to address two recurring issues faced by operators: securing non-debt funding and attracting a steady stream of new diners.
Under its approach, the company advances cash to restaurants and, instead of charging interest or taking equity, receives food and beverage credit.
The business buys this credit at a wholesale rate from partner venues and then allocates it to members via the app.
Restaurants can access between Dh20,000 ($5,445) and Dh10m ($2.7m) through the Mezza.
The capital can be directed towards operating expenses, growth projects or stabilising revenue.
Redemption of the credit is typically spread over 12 months. This is intended to distribute the cost to restaurants across the year while helping to smooth out customer traffic.
Mezza founder Kevin Boubil was quoted by Zawya as saying: “Restaurants often face two major challenges: access to capital and the ability to consistently attract new customers.
“Mezza was built to solve both. We provide funding without debt or dilution while helping restaurants bring more diners through their doors, not just on weekends, but throughout the year.”
Mezza has already signed agreements with several hospitality operators, including Italian restaurant Chic Nonna.
The operators are selected on criteria such as food quality, brand standing and overall guest experience.
To fund its rollout and future expansion, Mezza has also closed a Seed investment round, which was supported by investors including the founders of PropertyFinder and Jellysmack, as well as the chairman of Deel.
Earlier this month, UAE-based food delivery platforms warned of longer waits due to regional instability linked to the Iran conflict.
