Sector highlight: Huge volume of F&B offerings to open in Africa by 2025

by | 12 Oct 2019 | News

The African hospitality industry is an up-and-coming paradise for foodies. (Photo by Björn Rådeström on Unsplash)

Around 700 bars and restaurants are slated to open on the African continent within the next six years.

Reports conducted within the African hospitality industry point to a swathe of new F&B offerings coming to the region in the coming years.

It has been reported that approximately 700 new bars and restaurants will open in Africa by 2025.

We find out more.

A spate of new F&B announced at AHIF

At the recent Africa Hotel Investment Forum which took place in Addis Ababa, the news arrived that around 700 new bars, restaurants, cafes and other F&B will open in internationally branded hotels across the continent by 2025.

The number was brought to the table by F&B strategists and forecasters KEANE, who have predicted this figure based on research they conducted across over 400 F&B venues in 100 internationally branded hotels around Africa. The research also concerns W Hospitality Group’s development pipeline in the African market.

“Over the last 70 years, the restaurant market internationally has been built on three factors; growing towns and cities, broad distribution of income and a growing middle class,” said Stefan Breg, Group Strategy Director of KEANE.

“When you take into account that the anticipated rate of urbanisation expected across Africa will outpace India and China in the next 25 years, Africa will become one of the world’s most vibrant dining scenes,” Mr Breg elaborated.

Various F&B paths to go down

This swell of new F&B offerings will present itself in several guises. Firstly, there is the model of two to three F&B venues per hotel, popular in Europe and the US. Secondly, there is the model of four or more F&B venues per hotel, more popular in the Middle East.

In the first option, F&B takes a backseat to the marketing of rooms, whereas in the second option, F&B venues can be operated by third parties, thereby creating new revenue streams. F&B is becoming increasingly important within hotels and many operators and hoteliers are struggling to get it right.

Emma Banks, VP Food & Beverage Strategy & Development EMEA, Hilton, spoke of Hilton’s approach to F&B, saying, “We look carefully at the market to determine the right number of F&B concepts. If a hotel is considering a third-party partner, a good approach could be to trial the concept initially with a pop-up to gage the market appetite before committing to a larger investment and commitment.”

Priorities in Africa

The focus of F&B venues in the African hospitality market will be concerned with employing local staff and operating a sustainable business.

Women make up a significant number of employees within Hilton’s African portfolio, while Marriott is aiming to use local resources and materials in their developments where possible.

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