AI, digitisation could hold the key to MENA's food security challenge

Wamda

30-06-2025

The food and beverage (F&B) industry across the MENA region is undergoing a rapid transformation. As technology continues to reshape customer expectations and business operations, food tech has emerged as a critical driver of innovation—enabling restaurants to operate more efficiently, sustainably, and profitably.
A Sector on the Verge of Digital Maturity
The convergence of AI, data analytics, cloud computing, and integrated payment systems is helping F&B operators across the region respond to shifting consumer habits. According to PwC, the food tech sector in MENA is projected to grow by 14% over the next five years, supported by rising digitization and a more tech-savvy customer base.
From back-of-house operations to the customer-facing dining experience, food tech has become more than a convenience—it's now a necessity for restaurants aiming to stay competitive in a dynamic market.
Operational Efficiency Starts with Smart Systems
Restaurant Management Systems (RMS), Point of Sale (POS) platforms, and AI-powered forecasting tools are now the backbone of modern restaurant operations. These systems help manage inventory, streamline order flows, reduce waste, and improve scheduling—resulting in better margins and fewer human errors.
In 2024 alone, 41% of restaurants surveyed adopted AI for sales forecasting, particularly to minimize food wastage, which remains a significant cost driver across the industry. Real-time insights and remote management tools are making multi-branch operations not only feasible but also scalable.
Digitising the Front and Back of House
Customer-facing tools—such as self-ordering kiosks, digital menus, and integrated table-payment systems—are transforming the dining experience. These solutions help reduce wait times, improve order accuracy, and create more personalized interactions.
Behind the scenes, Kitchen Display Systems (KDS) are replacing printed order slips, improving sustainability and reducing order errors. Inventory management tools offer real-time visibility into ingredient usage, helping restaurants avoid stockouts or over-ordering, and thus enhancing both efficiency and profitability.
Customer Experience as a Competitive Edge
Consumers today expect speed, personalization, and transparency. A study by Deloitte found that 60% of diners say customer service significantly impacts their dining decisions. Food tech enables restaurants to meet these expectations with smoother interactions, quicker service, and greater accuracy.
Self-service tools, real-time order tracking, and transparent payment systems are helping build trust and loyalty among diners—while offering upselling opportunities and operational benefits to restaurants.
Data as a Catalyst for Strategic Growth
The real power of food tech lies in data. Advanced POS systems and CRM platforms are collecting behavioral insights, sales patterns, and performance metrics that can inform everything from menu design to staffing and expansion strategies.
Restaurants using data analytics have seen an average profit margin increase of 8–10%, according to industry benchmarks. Leveraging these insights allows businesses to better align offerings with customer preferences, manage costs more effectively, and identify optimal locations for new outlets.
Adapting to the Digital Ordering Economy
With 31% of restaurants globally earning over half of their revenue from digital channels, seamless integration with online ordering platforms has become a must. Food tech enables centralized management of digital orders, customer data, and third-party delivery partnerships—reducing friction and improving accuracy.
This shift is not just about convenience—it's a structural evolution in how the F&B sector engages with its customers and builds loyalty in an increasingly digital economy.
Looking Ahead: A Tech-Driven F&B Future
As restaurants across MENA continue to embrace digital transformation, food tech is proving to be both a competitive differentiator and an enabler of resilience. Whether it's minimizing food waste, improving service quality, or making smarter decisions through data, technology is redefining what success looks like in the F&B sector.
For startups, investors, and ecosystem enablers, the food tech space presents significant opportunities—from SaaS platforms and AI-powered analytics to embedded fintech and logistics integration. As the sector evolves, those who harness the power of food tech will not only survive—they'll lead.