How Africans eat has changed dramatically in the last decade. In Kenya, Nigeria, and South Africa, digital ordering platforms such as Jumia Food, Uber Eats, and Glovo have become popular among consumers, allowing them to order food from their favourite restaurants without leaving their homes. This has increased revenue for restaurants, as they can now reach a wider audience and offer convenient delivery options.
According to a report by Jumia Food, digital food ordering in Kenya increased by 400% during the pandemic, with the average order value increasing by 15%. In Nigeria, digital food ordering grew by 30% in 2020, with 70% of orders coming from first-time users. South Africa also experienced a surge in digital food ordering, with a 30% increase in orders in 2020.
Despite this, profitability and long-term sustainability remain significant concerns. For example, the average restaurant loses money on every delivery made and spends over 45% of its costs on goods compared to global.
In the last ten years, winning restaurants have digitised their sales, customer relationships and accounts receivables. But, to succeed in the next decade, restaurant leaders must reassess technology's role in ordering supplies, managing supplier performance and paying vendors.
Join Our Mailing List
A weekly newsletter about the global food and consumer packaged goods (CPG) industry, as well as the leaders who are shaping it.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.