Market Trends of egypt foodservice Industry
Egypt's food and beverage industry grows, with global brands like KFC, Buffalo Burger, Domino's Pizza, Starbucks, and Costa coffee expanding their presence
- The number of QSR restaurants increased from 17,626 in 2020 to 18,324 in 2022. This growth is due to the increase in the number of global fast-food brands with their company-operated and franchised chain stores that helps to grow their footprint in the nation. Global fast-food brands such as KFC, Buffalo Burger, and Domino's Pizza operate with a majority of franchised stores. For instance, as of 2022, KFC had 164 restaurants, Buffalo Burger had 45 outlets, and Domino's Pizza had 114 outlets with several franchisee owners in the nation.
- The cloud kitchen segment is expected to be the fastest-growing segment in the market during the study period, which is anticipated to register a CAGR of 5.13%. The cloud kitchen industry has experienced a drastic increase post-pandemic with the rise in online food delivery and takeaways. For instance, since the pandemic, online food ordering has grown by 50% in Egypt as people rely more on ordering a meal from an online food delivery service or company website. The number of cloud kitchen outlets tends to increase more rapidly with the increased penetration of a variety of online food delivery applications. Thus, it is predicted that in the coming three years (2023-2025), the outlets' count will increase by 21%. The number of cafes & bars establishments increased by 1.41% from 2020 to 2021 due to the increased penetration of specialty coffee shops offering gourmet and Arabian coffee, as the demand for caffeinated products is high in the nation. Egyptians mainly consume an average of 1.6 billion cups of coffee daily. Thus, the number of specialty coffee shops is growing significantly with the rise in coffee consumption. Global brands, namely Starbucks and Costa Coffee, are expanding with outlet counts of 68 and 45, respectively.
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FSR and QSR are booming in Egypt, with popular dishes like medames, ghanoush, hummus, kababs, burgers, and falafel
- The average order value was the highest among the full service restaurants in 2022 compared to other foodservice types, with a price of USD 11.74. The demand for FSR is expected to continue to grow in the coming years, with opportunities for growth in several areas, including the expansion of the restaurant chains, the development of new dining concepts, and the increasing popularity of fine dining. Saigon Restaurant & Lounge, Noble House, and Birdcage are some of the country's popular Asian restaurants. Popular dishes offered by the FSR in the country include medames, ghanoush, and hummus, which were priced at USD 5.4, USD 4.8, and USD 4.25 per 300 grams, respectively, in 2022.
- Cloud kitchens are expected to grow at a faster rate in the coming years, owing to the expansion of the delivery and takeaway market. The average order value of cloud kitchens was USD 9.02 in 2022. Popular dishes in cloud kitchens include kabab, ghanoush, falafel, and shawarma, priced at USD 3.2, USD 4.8, USD 4.2, and USD 4.75 per 250 grams, respectively, in 2022.
- The average order value of quick service restaurants increased by 10.52% from 2017 to 2022. The entry of various national and international players in the QSR segment in the country has significantly widened the chained quick service fast-food outlet segment due to the rapidly expanding middle-class population and increased consumer spending on fast food. Popular dishes offered by the QSR in the country include kababs, burgers, and falafel, priced at USD 3.2, USD 3.5, and USD 4.2 per 300 grams, respectively, in 2022. The QSR segment is expected to grow further, with an opportunity for players to expand their menu offerings and cater to the evolving tastes and preferences of Egyptian consumers.
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