Experts and exhibitors at the on going Kenyan Food Expo in Nairobi have called on the hospitality industry to embrace innovation and technology to drive growth and enhance customer experience.
The Expo, which is an annual culinary showcase that celebrates the diversity and excellence of Kenya's food scene, features a wide array of activities, including cooking demonstrations, food tastings, and cultural displays.
Exhibitors said the industry must adopt new technologies to remain competitive and ensure future growth.
Kenya's restaurant industry has seen steady growth since the pandemic, but experts and Industry players argue that innovation is crucial to advancing further.
Montgomery East Africa portfolio director, Angela Kinyua, who are the organisers of the event said that adopting new technologies is essential for the industry's future and competitiveness in the region.
“Innovation is key in meeting market demands and increasing revenues for industry players. Kenya has seen a steady growth in restaurants since the pandemic, but needs to leverage innovation and technology to truly advance,” said Kinyua.
Kenya currently has over 3,800 restaurants, with the number continuing to grow post-pandemic. However, industry leaders suggest that the sector's growth has stagnated compared to pre-2019 levels, highlighting the importance of leveraging technology.
The hospitality industry is one of the top three revenue earners according to data from the Economic Survey of 2024 by Kenya National Bureau of Statistics (KNBS).
The accommodation and food services sector grew by 26 per cent in the third quarter of 2023, representing an increase in comparison to 2022, when the sector's value added was around 17 percent.
The country’s food production is projected to reach $13 billion (Sh1.7 trillion) by 2026, with beverage sales expected to hit $3.5 billion (Sh450.6billion).
The restaurant delivery market is also poised for significant expansion, with a projected compound annual growth rate (CAGR) of 9.44 percent from 2024 to 2028.
In addition, the beverage market is set to grow steadily, with alcoholic and non-alcoholic drink sales projected to increase significantly by 2028.
The restaurant delivery market is expected to reach $296.2 million (Sh38.1billion) by 2024, with a market volume of $424.9 million (Sh54.7billion) anticipated by 2028.
