Eye on the F&B’s investment landscape post COVID-19

Eye on the F&B’s investment landscape post COVID-19

Knowing that COVID-19 has disrupted the entire F&B and hospitality industry landscape, it has specifically hit the investment scenery and has frozen the activities there. HN spoke to Hossam Heiba, managing director of Orbis Capital & Investment in Egypt, to highlight the investors’ opinion when it comes to investing in a post-COVID-19 era.

Hossam Heiba

How do you think COVID-19 impacted the hospitality and F&B industry’s investment?

The pandemic has severely impacted the HORECA business at large, financially and business wise in terms of forcing it to remodel the businesses forever. This entails delays in investments flow into the HORECA channels until business models are redefined. Most investments will be injected in the remodeling process rather than expansions. I presume this will continue through 2020. If the pandemic is controlled at the beginning of 2021, investment flow will resume towards the new business models.

What are the new norms investors will adopt while making their investment decisions?

New norms will be affected by the following factors – but not limited to:

  • Sanitation and strict health measures
  • Regaining and maintaining consumer confidence in the sector
  • Using technology for ease of use and more reach.
  • Home serving ideas (ready meals/frozen meals/packing/healthy/etc.)
  • Business Sustainability & Continuity
  • Targeted segments in terms of price points/quality.
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Which areas in the industry will drive investors more?

  • Self-serving models (OTC outlets / Food Trucks)
  • Online ordering platforms
  • Ready meals platforms
  • Tech based supporting activities
  • Supply chain supporting activities

Will we see shy investments and lower capitals?

Yes, in 2020. But this might change by 2021 upon the stability of the situation.

In your opinion, which markets will thrive in the region?

I think top performing markets will be the ones that have the infrastructure to organically grow and are attractive for investors within 2021-2022. These include Egypt, KSA, UAE and Morocco.

Do you think tech-driven ideas will attract more funding and why?

Of course, because all business models will be tech-based.

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