Egypt Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Egypt Foodservice Market Analysis

The Egypt Foodservice Market size is estimated at 10.35 billion USD in 2025, and is expected to reach 21.25 billion USD by 2030, growing at a CAGR of 15.47% during the forecast period (2025-2030).

The Egyptian foodservice industry is experiencing significant transformation driven by changing consumer preferences and increasing international exposure. The country's tourism sector plays a vital role in shaping the industry, with Egypt welcoming 11.7 million international tourists in 2022, creating diverse culinary demands and opportunities for foodservice operators. This international influence has led to a fusion of traditional Egyptian cuisine with global flavors, particularly evident in urban areas like Cairo and Alexandria. The hospitality sector has responded to this trend by expanding its infrastructure, with the country boasting 202,430 hotel rooms and similar establishments in 2022, creating numerous opportunities for foodservice operations across various locations.

Digital transformation and changing consumer behavior are reshaping the foodservice landscape in Egypt. The increasing adoption of food delivery platforms has revolutionized how Egyptians interact with restaurants, with approximately 38.7% of the population utilizing online food delivery applications. This shift has prompted traditional restaurants to adapt their operations and embrace digital solutions, including online ordering systems and digital payment methods. The dining culture in Egypt remains deeply rooted in social interactions, with statistics showing that 90% of outings revolve around food-related activities, highlighting the significant role of foodservice establishments in Egyptian social life.

The market is witnessing a notable shift in consumer preferences towards both international and health-conscious options. European cuisine has gained significant traction, particularly in urban areas, with European ex-pats accounting for 55% of the total foreign personnel in Egypt's governmental and public sectors in 2022. This demographic shift has influenced the proliferation of international restaurant chains and diverse culinary offerings. Simultaneously, there's a growing emphasis on healthy eating options, with establishments incorporating more nutritious alternatives and transparent menu labeling to cater to health-conscious consumers.

The beverage segment within the foodservice market has evolved significantly, reflecting changing consumer tastes and social norms. Out-of-home coffee consumption has become a significant trend, accounting for 67% of total coffee-related expenses in 2022, indicating a strong cafe culture. The alcoholic beverage sector operates within specific constraints due to cultural and regulatory factors, yet maintains a presence particularly in tourist areas and high-end establishments, with approximately 54% of the population consuming beer in 2022. This has led to the development of specialized venues catering to both local preferences and international visitors, particularly in tourist-heavy locations.

Egypt Foodservice Market Trends

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 consume an average of 20 million 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.

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.

Segment Analysis: Foodservice Type

Quick Service Restaurants Segment in Egypt Foodservice Market

Quick Service Restaurants (QSR) dominate the Egyptian food market, commanding approximately 54% market share in 2024. The segment's strong performance is driven by the increasing popularity of international fast food brands and their expanding footprint across the nation through company-operated and franchised chain stores. The preference for American and Middle Eastern fast foods remains high among Egyptians who choose them as meal options for dinner or lunch due to their cost-effectiveness. Popular QSR offerings include shawarma, kebab, and chicken cheeseburgers, with shawarma priced between USD 0.74-2.87, kebab around USD 3.2, and chicken cheeseburger between USD 4.12-6.43, making them accessible to a wide consumer base.

Cloud Kitchen Segment in Egypt Foodservice Market

The cloud kitchen segment is experiencing remarkable growth in the Egypt foodservice market, projected to expand at approximately 21% CAGR from 2024 to 2029. This exceptional growth is primarily attributed to the rising penetration of online food orders and delivery applications like Talabat and Hungerstation. The segment's expansion is further supported by the increased internet penetration in Egypt, with about 75.66 million internet users actively engaging in online food ordering. Cloud kitchens are rapidly becoming the industry standard due to their low operational costs and high efficiency, offering restaurant owners greater flexibility in updating menu items and product offerings through their websites.

Remaining Segments in Foodservice Type

The Full Service Restaurants (FSR) and Cafes & Bars segments play significant roles in shaping the Egyptian foodservice landscape. FSR establishments cater to consumers seeking more refined dining experiences, offering diverse cuisines including Asian, European, and Middle Eastern options. The Cafes & Bars segment has gained prominence with the increasing popularity of specialty coffee shops and the growing cafe culture, particularly among younger demographics. Both segments contribute to the market's diversity by providing varied dining experiences, from casual coffee meetups to formal dining occasions, serving different consumer preferences and occasions throughout the day.

Segment Analysis: Outlet

Independent Outlets Segment in Egypt Foodservice Market

Independent outlets continue to dominate the Egypt foodservice market, holding approximately 53% market share in 2024. The segment's prominence is largely driven by quick service restaurants, which form a major portion of independent establishments. More than 82% of Egyptians prefer to eat fast food on a daily basis, contributing significantly to the segment's dominance. Independent outlets focus on using local ingredients such as spices and herbs in cooking to make it appealing for locals. The segment has particularly benefited from the rising demand for juice and smoothie shops, which has grown significantly as people have become more inclined toward following a healthy diet. Independent Middle Eastern restaurants in lodging locations have also contributed substantially to the segment's leadership position, especially with the rise in tourist arrivals at the nation's top-rated hotels.

Chained Outlets Segment in Egypt Foodservice Market

The chained outlets segment is projected to demonstrate robust growth with an expected CAGR of approximately 15% during 2024-2029. This growth trajectory is primarily driven by the establishment of foodservice chains in densely populated areas such as Cairo and Alexandria. Chained quick service restaurants are spearheading this growth as their share continues to expand, particularly in the meat-based cuisines category. The segment's growth is further bolstered by chained Middle Eastern cuisine establishments, which are experiencing rapid expansion due to the increasing number of Arabian tourist arrivals in the nation. Global brands like Starbucks and Costa Coffee are actively expanding their presence, with their respective outlet counts reaching 68 and 45 locations. The segment's growth is also supported by the rising popularity of international fast-food brands with their company-operated and franchised chain stores.

Segment Analysis: Location

Standalone Segment in Egypt Foodservice Market

Standalone locations dominate the Egyptian foodservice market, driven primarily by the high concentration of independent quick service restaurants in populated streets across major cities like Cairo, Giza, and Aswan. These locations benefit from high foot traffic and strategic positioning in areas with dense population. The popularity of standalone locations is further enhanced by their ability to offer cost-effective dining options, particularly in American and Middle Eastern fast foods which are preferred by locals for dinner or lunch. Popular items like shawarma, kebab, and chicken cheeseburger are widely available at competitive price points, with shawarma costing between USD 0.74-2.87, kebab around USD 3.2, and chicken cheeseburger priced between USD 4.12-6.43, making them accessible to a broad consumer base.

Leisure Segment in Egypt Foodservice Market

The leisure segment is experiencing remarkable growth in the Egyptian foodservice market, projected to expand significantly through 2024-2029. This growth is primarily driven by the increasing number of sports events and entertainment venues in the country. Egypt's capability to host major international sporting events has been demonstrated through various championships and tournaments, creating substantial opportunities for foodservice operators. The country's ambitious plans, including bidding for the 2036 Olympic games, are expected to further boost the leisure segment. Additionally, the segment benefits from the rising trend of families, couples, and groups of friends seeking enjoyable dining experiences in relaxed and comfortable environments associated with leisure venues.

Remaining Segments in Location

The other location segments - retail, travel, and lodging - each play distinct roles in shaping the Egyptian foodservice market. Retail locations, particularly in shopping malls and supermarkets, cater to shoppers seeking convenient dining options during their retail experiences. Travel locations, including airports, railway stations, and highways, serve the growing number of domestic and international travelers with quick-service options and cafes. Lodging locations, comprising hotels and resorts, focus on providing diverse dining experiences for guests, often featuring multiple cuisine options and high-end restaurants to enhance the overall hospitality experience. These segments collectively contribute to the market's diversity and cater to different consumer needs and occasions.

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