The Middle East and North Africa (MENA) region is experiencing a surge in restaurant delivery, driven by a growing consumer appetite for convenience, posting a 10 percent jump in food delivery orders in the first quarter of 2024 over the same year-ago period, a latest industry research revealed.
Restaurants in the UAE are leading the boom in delivery orders in the region, with fast food chains reigning supreme in the game, with a staggering 89 percent of orders placed for delivery, data from the joint research by Syrve MENA, a dynamic Middle Eastern restaurant software provider, and Admitad, a leading partnership marketing platform, showed.
The study also threw up interesting cuisine-specific trends in delivery, with Arabic cuisine surging in the mornings with 71 percent of orders, while dinner is the show’s star for Italian and Indian restaurants.
Italian restaurants led the dinner time surge with a whopping 85 percent delivery orders, followed by Indian restaurants clocking 43 percent delivery orders during the 8 PM-11 PM peak hour slot.
Roti, butter naan and dal makhani are popular choices for Indian delivery, while Italian restaurants see a strong demand for dinner classics such as pasta and risotto.
Kebabs take the top spot for delivery of Arabic cuisine in the morning peak hours.
Fast-food chains steal the show for order deliveries
The Syrve MENA-Admitad study showed restaurants specialising in fast foods dominating the delivery order segment, clocking an average 600,000 orders per year, raking up an average AED126 million in sales per fast-food chains.
Overall, UAE restaurants received thousands and millions of delivery orders this year, with a medium number of 228,740 orders per year and AED32 million in sales per restaurant, according to Syrve MENA-Admitad data.
The spike in food delivery in the first quarter of 2024, followed a strong 2023 which registered a 6 percent jump in delivery orders and a 5 percent rise in spending on orders.
Interestingly, the study revealed that despite a surge in orders during dinner time, delivery still makes up a smaller portion of the business for Italian and Asian chains, accounting for only 13 percent of orders.
On the other hand, deliveries account for a major chunk of businesses for international chains, accounting for 64 percent of orders, peaking during dinner hours, with shawarma, kebabs and fries being popular choices.
Mobile dominance in MENA food delivery
The market research also revealed interesting seasonal trends in delivery habits, with orders typically peaking during March and April, coinciding with Ramadan, with a secondary surge in September and October.
January and February, on the other hand, are generally slower months.
The study also highlighted the dominance of mobile convenience in the UAE and MENA food delivery landscape, with over 70 percent of all orders are placed through smartphones, reflecting the region’s high mobile penetration rate.
“The MENA region’s food delivery market is booming, driven by convenience-seeking consumers and a strong mobile culture,” Alexander Ponomarev, CEO at Syrve MENA, told Arabian Business.
“We expect this trend to continue as restaurants leverage data and technology to deliver personalised experiences and cater to evolving customer preferences,” he said.
Ponomarev also pointed out that the future looks prosperous for the MENA food delivery market, with factors like urbanisation, smartphone adoption, and convenience-driven dining experiences contributing to its rapid growth.
“Furthermore, the increasing popularity of mobile ordering, compelling promotions, and strategic marketing promises continued growth for both restaurants and delivery platforms,” the Syrve MENA chief executive said.
His comments reflect the findings of the study which showed that promotions are king when it comes to attracting customers.
Over half of users leverage coupons and promo codes, while over a quarter benefit from cash-back rewards, emphasising the effectiveness of loyalty programmes, the study said.
Anna Gidirim, CEO of Admitad, said content also plays a significant role, with blogs and thematic web pages influencing over 20 percent of delivery orders.
“Well-targeted contextual advertising adds another 18 percent to the mix,” Gidirim told Arabian Business.
The study findings assume added significance in light of projections of over 20 percent CAGR (compound annual growth rate) in the MENA online food delivery market for the next several years, supported by innovative technology development.
The UAE online food delivery market, estimated to reach revenue of over $67 million this year, is projected to hit the $100 million mark by the turn of this decade.
In Saudi Arabia, another growing market for online delivery orders, the number of users in the meal delivery market is expected to reach 19.5 million users by 2029, with a projected user penetration rate of 42.9 percent in 2024, according to Statista.
Follow us on
