Why Food & Beverage Retailers in Saudi Arabia should ‘Technologify’ themselves?

Retailers cannot ignore the needs of today’s emerging millennial customers. And since half of the Kingdom’s population is marked by the thriving, energetic, educated and tech-savvy millennial generation, it becomes all the more a necessary for retailers working in the food and beverage industry to change their menu (and we’re not talking about only food options here!), to suit the taste of this generation.

A report published in February 2018 by arabianbusiness.com suggests that the GCC’s food and beverage sector is expected to grow 7.1 percent annually to reach $196 billion by 2021, up from $130 billion today. The statistics, on which the report is based, reveal that Saudi Arabia alone accounts for more than half of the market shared.

Isn’t it an exciting time to be a part of the F&B retail and restaurant market in Saudi Arabia?

Well, it definitely is! But as retailers deal with a generation of customers that is not only equipped with technology but values experience more than the product being offered, it sure is the right time for retailers to add a big scoop of innovation to their strategies.

Here are a few reasons why Saudi F&B retailers should ‘technologify’ themselves right away!

Convenient Eating

A Saudigazette report talking about how millennials are transforming the MENA (Middle East and North Africa) region suggests that 43% millennials in the region prefer ordering food online and 56% of these smart individuals are continuously looking for new ways to integrate new technologies into their daily lives.

With one of the highest rates of internet penetration and mobile usage, it shouldn’t come as a shock as to why the young population of the Kingdom wants to incorporate technology into its daily lives — even for eating! However, e-commerce penetration in both retail food and foodservice is way lower than that in other sectors with the gap shrinking fast.

At a time when people are shifting towards adopting e-commerce in groceries, ordering from food apps, and subscribing to meal kit services, it high time for retailers to undertake measures to make eating, more and more convenient for their customers.

Selling Experiences > Selling Food

Saudi Millennials and Gen Zers don’t just want good food; they expect an exceptional service to complement the delicacies they eat. The better the experience, the more loyal they are towards the brand offering the experience. Hence, the thoughtfully deduced expression — Selling Experiences is greater than (>) Selling Food.

Technology works in favor of retailers, helping them make even a simple dining event a memorable experience. Consider Foodics — the all-in-one restaurant management system for Apple iPad. The cloud-based restaurant payment system offered in English and Arabic enables restaurant owners to analyze sales, manage inventory, create employee schedules, and predict customer behavior based on past orders.

These are but just a few tasks that can be accomplished by implementing the technology. There’s so much more, that business owners in the F&B industry can do, like attract new customers every day, simplify the table booking process, facilitate online menu browsing, offer easy online ordering and food/grocery delivery services, send offers notifications, and more to provide customers with a unique experience.

Social Foodies

With the introduction of more liberal policies, Saudi Arabia is undergoing unprecedented social changes. Social Media Users in the Kingdom account for 75% of its population which implies that there are around 25 million individuals in the country with active social media accounts.

An Ipsos Connect study has shown that 94% of Saudi millennials are active online i.e., they like, comment, share and post things they like on various social media platforms. The study also states that social media has become the main source of communication among millennials, that they use for at least two hours a day.

These insights signal towards the golden opportunity that retailers have. All they need to do is meet their customers where they’re at, in order to gain exposure and bring new traffic to their business. Social media can do more than just bring traffic to your premises — it can give ample data to help you devise a relevant retail strategy. Moreover, you can personalize customers’ experiences while providing exceptional customer services to them.

The Right Time to ‘Technologify’

There was a time when there were just a few elegant dining options. Today, the Kingdom is dotted with fast-food joints, cafes, fine-dining restaurants and even food trucks for that matter! Saudi food-lovers now have myriad choices in every segment of the food industry and they are now on the search for superior variety, taste, price, accessibility and overall experience.

Moreover, with the newly-formed guidelines about seating sections, music, and entertainment, the food, and beverage retailers are experimenting with new-fangled concepts to offer a more diverse cuisine and experience to customers. In such a competitive landscape, any retailer falling short in any of these areas will soon cease to exist.

There’s no doubt in the fact that on-premise foodservice and offline grocery will never lose their ground. However, restaurant operators and retailers who leverage digital commerce will lead the market in this challenging environment. With the market so ripe and full of opportunities, this is the right time for these players to ‘technologify’ themselves to reinvent the brick-and-mortar experience.

Originally published at henote.com