Embracing change

Boasting a 70 million strong population and currently attracting increased foreign investment, Egypt's foodservice industry has witnessed heightened competition, yet the potential for further growth indicates a prosperous future ahead.

"Money is being pumped into Egypt due to the population growth, and is being concentrated largely on fine dining and casual dining restaurants from international brands, alongside an increase in Arab investment due to the favourable political climate and demographics," comments Mirjam van IJssel, executive director, Egyptian Chefs Association.

According to the Egyptian Restaurant Association, 1200 restaurants and coffee shops opened in the country last year, a figure catapulted by the recent arrival of franchises such as Casper & Gambini's, Coffee Bean & Tea Leaf, Starbucks and Burger King, which have overtaken the control of independent restaurants.

Across the country, foreign direct investment (FDI) has boomed due to liberal economic measures employed by its minister of investment Mahmoud Mohieddin, and the country is now set to overtake South Africa as the continent's highest FDI earner this year, with the wealth of the food and beverage industry pivotal to that promising prediction.

Van IJssel points out though, that if a restaurant has a foreign owner or investor, there must always be an Egyptian partner whose name will be used on the papers, so full foreign ownership is restricted by law.

Boasting one of Africa's most prosperous economies despite the drop in tourist numbers in recent years - in part due to the 2004 bombings in Taba and Nuweiba - self-service outlets have penetrated the market for many years due to their friendly and inexpensive atmosphere. With a GDP growth of 5% last year, Egyptians are now said to be able to afford to eat out more than once a week, an estimate currently fuelling the newfound domination of the market by full-service restaurants in terms of sales.

"Over the past decade there has been a steady growth in the disposable income of middle class families, which has also influenced the soaring café formula, allowing it to progress from traditional ahwas to international brands," van IJssel says.

According to Giancarlo Gottardo, executive chef at Four Seasons Hotel Cairo at The First Residence, international dishes like sushi have emerged as a firm choice among high-net-worth individuals in the country, while Italian cuisine remains popular among all ranks of society.

Making its debut at Cairo's City Centre last year, coffee giant Starbucks is also beginning to cash in on the rising popularity of eating and drinking out of home in the country. Mohamed Alshaya, CEO of franchisee Alshaya Egypt - that owns the rights to Starbucks in the country - says the group recognised Egypt as "a fast moving market going from strength to strength," with the group now set to open 50 branches across Egypt.