The African foodservice market is projected to register a CAGR of 7.99% during the forecast period of 2022-2027.

According to the annual report of McDonald's, in 2020, sales decreased by 7.7%, primarily due to COVID-19 in Africa. Comparable guest counts were negative across all segments for the year. Comparable sales in South Africa increased by 0.4%, benefiting from strong average check growth and positive comparable sales primarily on dinner daypart. The Company's strategic marketing investments and promotional activity, along with delivery growth, positively impacted comparable sales in the second half of 2020.

Supported by a stable government, rising disposable income, and dining and eating-out trends, the market studied is projected to witness significant growth over the forecast period.

Moreover, with growing urbanization and access to technology, there is a growing preference for home delivery services, primarily provided by companies. This is expected to supplement the segment’s growth over the forecast period. The busy lifestyles of consumers in the country are driving the demand for takeaways, on-the-go food services, and home delivery trends.

Key Market Trends

Rising Tourism Spending Driving Foodservice Sales

Leisure tourism is responsible for a large portion of the tourism expenditure in Africa. In 2021, consumer food service through leisure tourism was growing rapidly, especially in destinations such as Morocco and South Africa, where tourism is a rapidly growing industry. The demand for international restaurant chains and full-service restaurants is also projected to grow over the forecast period. Along with the rise in tourism, celebrating local food as part of tourism and facilitating trading relations between hotels, restaurants, and local suppliers have been an integral part of African tourism, propelling tourism expenditure into food service outlets. According to a report published by UNWTO, international tourist arrivals in Africa increased by 2% in 2019, further increasing in recent years. The region witnessed a total of 56 million international tourists in absolute terms.

Quick Service Restaurants Holds a Prominent Share

The African marketplace witnessed the influx of an unprecedented number of quick service restaurants, particularly fast-food operators, after the opening of the first fast-food outlet in Nigeria in 1986, by Mr. Bigg's, a subsidiary of UAC Nigeria PLC. The role of technology is expected to shape the future of African quick service restaurants, as leading companies are opening high-technology chains and launching online food ordering apps in line with the market demand. Some of the leading quick service brands in the country include Pizza Hut, Chicken Republic, Mr. Bigg’s, and Tastee Fried Chicken. The entry of various national and international players in the quick-service segment has significantly widened the chained quick-service fast-food outlet market due to the rapidly expanding middle-class population, urbanization, increased spending among the youth, a growing number of nuclear families, and better delivery services by brands' own and app-based delivery partners. For instance, In September 2021, KFC South Africa, a fast-food restaurant, launched an in-house delivery service dubbed KFC Delivery Plus, allowing customers to place their orders via the KFC mobile app or website and secure access to exclusive offers.

Competitive Landscape

The African foodservice market is highly competitive. The global market players focus on improving their market shares, and small regional players primarily cater to smaller regions to expand their market shares. Some of the leading players in the market include Yum! Brands Inc., Domino's Pizza Inc., and Nando’s. Product innovation and partnership are the key strategies adopted by the key players in the market studied. Both strategies are working together for the players to satiate the range of consumer groups, such as consumer demand for plant-based, vegan, and organic products. International restaurants, such as McDonald's, Starbucks Corporation, and Yum! Brands Inc. have been continuously expanding through franchises or joint ventures with local food service companies who would rather be franchisees of foreign brands than open their local restaurants. This strategy appears to have a better chance of succeeding because it requires less work to develop brand value among market consumers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

• 1 INTRODUCTION

  • 1.1 Study Assumptions & Market Definition

  • 1.2 Scope of the Study

• 2 RESEARCH METHODOLOGY

• 3 EXECUTIVE SUMMARY

• 4 MARKET DYNAMICS

  • 4.1 Market Drivers

  • 4.2 Market Restraints

  • 4.3 Porter's Five Forces Analysis

    • 4.3.1 Threat of New Entrants

    • 4.3.2 Bargaining Power of Buyers/Consumers

    • 4.3.3 Bargaining Power of Suppliers

    • 4.3.4 Threat of Substitute Products

    • 4.3.5 Intensity of Competitive Rivalry

• 5 MARKET SEGMENTATION

  • 5.1 By Type

    • 5.1.1 Full Service Restaurants

    • 5.1.2 Quick Service Restaurants

    • 5.1.3 Cafes and Bars

    • 5.1.4 100% Home Delivery

    • 5.1.5 Other Types

  • 5.2 By Structure

    • 5.2.1 Chained Outlets

    • 5.2.2 Independent Outlets

  • 5.3 By Geography

    • 5.3.1 Nigeria

    • 5.3.2 South Africa

    • 5.3.3 Kenya

    • 5.3.4 Rest of Africa

• 6 COMPETITIVE LANDSCAPE

  • 6.1 Most Active Companies

  • 6.2 Most Adopted Strategies

  • 6.3 Market Share Analysis

  • 6.4 Company Profiles

    • 6.4.1 McDonald's Corp

    • 6.4.2 Yum! Brands Inc

    • 6.4.3 Domino's Pizza Inc

    • 6.4.4 Burger King Corp

    • 6.4.5 Subway

    • 6.4.6 Famous Brands

    • 6.4.7 Starbucks Corp

    • 6.4.8 Restaurants Brands International

    • 6.4.9 Pizza Hut

    • 6.4.10 Nando's

• 7 MARKET OPPORTUNITIES AND FUTURE TRENDS

• 8 IMPACT OF COVID-19 ON THE MARKET