Consumer Foodservice in Middle East and Africa

August 2023

In 2022, consumer foodservice in Middle East and Africa was continuing to recover from the major dip in sales seen in 2020 when COVID-19 first hit the region. However, as one of the most badly hit industries by the restrictions in place during the pandemic, there is a lot of ground to recover. This is being made more difficult by high inflation rates, which are forcing industry players to push through price rises at the same time as negatively impacting consumers’ purchasing power.

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Key findings

Vision 2030 and return of Hajj pilgrim boosting growth in Saudi Arabia

Among the drivers of growth for consumer foodservice in Saudi Arabia in 2022 was the post-pandemic resumption of the Hajj and Umrah pilgrimages. Also boosting the performance of the general economy, including the foodservice industry, is the government’s Vision 2030 strategy.

Robots to the rescue for Israeli staff shortages

Staff shortages remained a major problem throughout consumer foodservice in Israel in 2022, with many former employees refusing to return to the industry post-pandemic. This has seen a number of players, including Oshi Oshi, piloting robot waiters to great success, with this trend expected to continue.

PayShap will speed up payments in South Africa

PayShap, South Africa’s Rapid Payments Programme, which was launched in 2023, will facilitate the ease of digital payments across income groups in the country, including the unbanked. Alongside the influx of affordable smartphones, PayShap will accelerate the integration of omnichannel models, with delivery and click-and-collect offerings becoming standard.

Inflation a concern heading into the forecast period

Most countries in the region have been afflicted by high inflation in the post-pandemic period. This is putting pressure on small and independent players as they find it hardest to avoid passing on at least some of these rising costs to their customers. The hope is that inflationary pressures will begin to ease over the course of 2023, going into the forecast period.

Scope
Key findings
Limited-service restaurants as popular as full-service restaurants in Middle East and Africa
Middle East and Africa has the fifth biggest market and lowest per capita spend
Positive growth expected, but 2019 sales levels not expected again until 2025
Inflation driving up costs for industry players
Full-service restaurants a major loser over 2017-2022 in Saudi Arabia
Eat-in reclaiming some of the share lost in 2020, but no return to pre-pandemic levels
Full-service restaurants and cafés/bars the biggest losers over 2017-2022
Vision 2030 and resumption of religious pilgrimages boost the Saudi Arabian performance
Saudi Arabia and United Arab Emirates hop on the back of the Qatar World Cup
Robot waiters as a solution to staff shortages in Israel
Consumer foodservice has a very fragmented competitive landscape in most countries
Major chained players managed to gain share during the pandemic
Saudi Arabia the main revenue generator for half of the region’s top 10 players
Spur Steak Branches back in the top 10 brands
Positive growth expected as recovery continues to be seen in regional sales
Vision 2030 should help to continue driving growth in Saudi Arabia
Online ordering expected to see healthy growth in Nigeria in the coming years
South Africa’s PayShap, part of Vision 2025, should facilitate easier payments
Egypt: Market Context
Egypt: Competitive and Retail Landscape
Israel: Market Context
Israel: Competitive and Retail Landscape
Morocco: Market Context
Morocco: Competitive and Retail Landscape
Nigeria: Market Context
Nigeria: Competitive and Retail Landscape
Saudi Arabia: Market Context
Saudi Arabia: Competitive and Retail Landscape
South Africa: Market Context
South Africa: Competitive and Retail Landscape
United Arab Emirates: Market Context
United Arab Emirates: Competitive and Retail Landscape

Consumer Foodservice

Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.

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