CBD Food Chains Relocate as 2019 Analysis Reveals Consumer Behavior Shifts

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Nyakundi Report

Newsroom 2 min read

In 2019, Nairobi's Central Business District saw several food chains, including Pizza Hut and Subway, relocate from their CBD locations, joining Domino’s and Cold Stone in shifting to malls or more commercially viable areas. The trend highlighted difficulties in generating consistent revenue from the district’s transient population, composed primarily of students, informal workers, and commuters.

The analysis, published in 2019, noted that while the CBD’s high foot traffic made it an attractive location, its demographic lacked the disposable income to support premium food offerings. "The beauty of these food outlets is that we saw them come to the central business district and we saw them leave. It was a free experiment," the writer observed, questioning whether businesses adequately understood local consumer habits.

Traditional Kenyan eateries like Kosewe’s adapted by moving to Upper Hill, where consumer preferences aligned more closely with local tastes. The 2019 report emphasized cultural factors, citing the persistence of staples like ugali and the recent inclusion of local dishes in international menus as evidence of shifting dietary patterns.

Economic dynamics also played a role. The CBD’s reliance on government institutions and public sector workers, rather than a robust middle class, made it less appealing for non-essential businesses. "The CBD has the numbers but not the money," the analysis stated, noting parallels with broader relocations of corporations and embassies to areas like Upper Hill and Riverside Drive.

Experts suggested repurposing high-rise buildings for residential or tourism use, given the CBD’s historical significance. However, the 2019 report warned that without a strong middle-class base, the area risked becoming a hub for low-income populations while affluent residents moved to suburbs.

The writer teaches at the University of Nairobi.

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