The UAE’s GrubTech, a platform that digitises the back-end operations of restaurants and cloud kitchens, has expanded to Egypt, further diversifying its regional operations.
GrubTech plans to invest $5 million in the Arab world’s third largest economy and most populous county over the coming 12 to 18 months, as it seeks to make Egypt its springboard for Africa expansion, the company said in a statement on Wednesday.
“I am so pleased for launching our operations in Egypt, which is one of the most important markets in the region,” said Mohamed Al Fayed, GrubTech’s co-founder and chief executive.
“There is a huge number of restaurants in the local market serving a large segment of the country’s population, which is a great opportunity for GrubTech to serve its clients through availing an easy-to-use integrated system,” he added.
With a population of 103 million and a median age of 25 years, Egypt has enormous potential. Egypt’s restaurants have experienced robust growth, with an estimated size of $17 billion annually, according to Egyptian cloud kitchen services operator The Food Lab.
Cloud kitchens, or ghost kitchens, are commercial establishments built to prepare food specifically for delivery and they have benefitted from the shift to online services during the coronavirus crisis. They have no physical presence as a restaurant, and offer delivery-only services from centralised premises through a mobile app.
The global cloud kitchen market is forecast to grow to $71.4bn by 2027 from about $43.1bn in 2019, according to Allied Market Research.
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