Restaurant & Food
Restaurants & Consumer Food Services
Consumer foodservice in Egypt to flourish due to a favourable macroeconomic environment
With the country’s noticeable political liberalisation, as recently evidenced by allowing direct presidential elections for the first time in Egypt’s history, along with its economic progression, the outlook for Egypt is quite promising. The country’s GDP growth is expected to rise to 5% in 2006. Improved economic indications reflect positively on the purchasing power of Egyptian consumers who will be able to eat out more than once a week thus maintaining growth in consumer foodservice.
Full-service restaurants (FSR) remains the greatest contributor in Egypt
In 2005 full-service restaurants continued to dominate consumer foodservice in terms of value sales. This was due to the presence of restaurants inside hotels, which are widespread across Egypt. In addition, full-service restaurant meals have the highest transaction value due to the relatively high cost of their ingredients.
City Stars a new eating location attracting more international chains to Egypt
Stars Centre, the retail/leisure component of City Stars integrated project (incorporating luxury apartments, offices, Intercontinental and Holiday Inn Hotels) in Heliopolis, offers opportunities for consumer foodservice outlets. With the existence of a commercial mall like City Stars, international consumer foodservice operators have become more receptive to introducing their brands to Egypt, once having secured the right location.
Red Sea resort taking shape to become a target for food chain expansion
New developments on the southern Red Sea coast are geared to attract elite tourist traffic to the area. For example, Port Ghalib is an integrated port and resort community in Hurghada, developed by the Kuwaiti Khirafi Group, comprising nine uniquely themed villages including luxury residential units, resort hotels, retail space, a golf course, a yacht club and a conference centre. Further examples include Port Ghalib.
Caspar & Gambini’s coffee house opening in Egypt
Caspar & Gambini’s aficionados will experience the same exceptional taste, service and ambience in Cairo’s two outlets in the City Stars mall and Nile City. Since its foundation in Lebanon in 1996, Caspar & Gambini’s have focused on quality of service as much as on quality of products and has evolved into an award-winning global restaurant and coffee house chain. Of Italian origin, the chain announced that it will operate two outlets in the City Stars and First Mall shopping centres in Cairo. The café restaurant will offer delivery and outside catering services of high-quality food. The introduction of the international chain confirms the potential of the Egyptian consumer foodservice channel for more specialist coffee shops.
Positive future for consumer foodservice channel
Over the forecast period, consumer foodservice is expected to experience growth due to demographic changes and changing lifestyles. Western cultures are increasingly being adopted by a new generation. Self-service outlets will be the fastest growing foodservice type largely due to its high penetration across Egypt and its friendly and non-expensive atmosphere. Moreover, coffee shops will also play a key role due to the presence of key international players such as Starbucks.