This archive report was first published on 9 July 2020.
Kenya's Food Service Industry Sees a Paradigm Shift ¶
For most Kenyans growing up in the 1980s and 1990s, the food experience was mundane. However, the early 2000s saw a significant evolution in the industry, particularly with the rise of mobile technology. Consumers became more time-sensitive and began embracing the convenience of online services.
The COVID-19 pandemic has further accelerated this shift, with the global pandemic forcing some players in the hospitality industry to close shop or restructure operations to minimize human contact. This has led to the growth of online food delivery services, with several players emerging to leverage technology and maximize profits.
One such player is FreshPro, a company that has partnered with over 500 farmers in Kiambu County to enable their produce to reach consumers. Ahmed Ibrahim, co-founder of FreshPro, stated, "We have partnered with several farmers within this County and it is proving to be fruitful. We acquire the produce from the farm on order and deliver it fresh to the customer's doorstep the next day."
Another player in the industry is Nairobeans, a local virtual kitchen that has taken advantage of technology to receive orders and track stock. Peter Wachira, founder of Nairobeans, said, "I heavily rely on my website and Instagram to receive new orders, especially as they have a wider reach. However, this is only during the first order as most clients prefer doing the return transactions by contacting me directly."
Despite the growth of technological models, both FreshPro and Nairobeans agree that the initial impact of the government measures on the pandemic saw increased panic shopping amongst their consumers. According to Visa, a global payments firm, many consumers in Kenya started shopping online for the first time during the pandemic, with 39 percent of consumers surveyed saying that the pandemic led to their first online grocery purchase.
Corine Mbiaketcha, General Manager for East Africa at Visa, commented on the report's findings, stating, "The pandemic is impacting business everywhere. The findings of the COVID-19 CEMEA Impact Tracker suggest shoppers have changed how they shop and this is already having a major impact on how merchants do business."
This new environment bodes well for any players in the foodservice industry who may be thinking about going online, as the impacts of the pandemic enable the development of a new marketplace characterized by far less direct human-to-human interaction and a larger digital footprint.
