DUBAI: A late-night craving for dessert led Hasan Sarwar to leave investment banking and build Peekabox, a Dubai-founded app that sells fresh unsold food from cafes, bakeries and grocery stores at discounts of 50 to 70 percent.
Sarwar was in a Dubai cafe at about 11 p.m. when he noticed the pastry shelves were still full.
“I simply asked them, I said: ‘What do you guys actually do with these items?’ And they said, ‘We make it in the morning, and then throw it the same day,’” he told Arab News. “All of these sort of very high-end pastries are getting thrown every single day.”
He went on to develop the idea, comparing it to Too Good To Go, a model he had used while at university in the UK. “We’ve grown up in Dubai. We know the UAE. We know the F&B space,” he recalled telling his parents.
He started alone. Three months in, he asked his brother Omair to join him as co-founder. “It was way too much work for one person,” Sarwar said.
The first brand to sign was Tim Hortons, part of Dubai’s Apparel Group, after a pitch that ran three months with no app and no demo. “I didn’t leave them alone for three months,” he said. Once the contract was signed, he used the name to bring other brands on, and boxes now come from coffee chains, bakeries, restaurants, grocery stores and hotel buffets.
Customers do not choose what they get. “If you say I have this exact item that you want, people are never going to buy full price,” Sarwar said, describing the surprise box as a way to gamify the purchase without cannibalizing full-price sales. His own highlight came from The Grey, an independent Dubai cafe — a strawberry tart, his favorite dessert, with croissants and pain au chocolat.
Getting there meant fighting the same objection on two fronts. Premium brands worried that discounting would dilute their brand equity, so he pointed them to luxury department store Harrods in London, which runs similar schemes, while customers had to be persuaded the food was fresh rather than left over. Both concerns were successfully countered, he said, pointing to the app’s 45 percent repeat order rate.
Peekabox is now in talks with Ne’ma, the UAE’s national food loss and waste initiative, under the Ministry of Climate Change and Environment.
It plans to open in Riyadh and Jeddah next year with franchise partners that have already committed to the launch. “In terms of Saudi (Arabia) as a market, people are more price sensitive for sure, and also the density of stores is greater,” he said.