The hospitality sector in Saudi Arabia is poised for substantial expansion, with predictions indicating a doubling of available accommodations and a surge in visitors — 30 million pilgrims and 150 million tourists by the year 2030.
Despite this growth, many economy and mid-tier hotels, which form the bulk of the sector, are encountering difficulties within their food and beverage (F&B) operations. These establishments typically focus on providing breakfast, with less emphasis on lunch and dinner services, leading to underutilized kitchen facilities and diminished F&B profitability.
Matbakhi is tackling these challenges head-on with a pioneering strategy aimed at revitalizing hotel F&B services. The company’s approach integrates technological advancements and opens up additional revenue streams through external catering and food delivery services.
Matbakhi steps in to democratise top quality F&B offerings and transform the hotel F&B vertical into a profitable one using our expertise in tech-integrated operations,
remarked Joe Frem, CEO and co-founder of Matbakhi. Our innovative asset-light approach involves digitising customer-facing and back-end processes, implementing smart inventory and kitchen management systems, and exploring new revenue streams through catering and the fast-growing segment of cloud kitchens, which is a lucrative opportunity for hotels.
Matbakhi operates over 15 virtual brands within hotel infrastructures, allowing these establishments to penetrate the burgeoning delivery market without considerable additional costs. This method is particularly promising in Saudi Arabia, where delivery services are still not fully exploited, according to Assad Numan, former CEO of Hungerstation.
The company is also keen on nurturing local talent, offering a stage for young Saudi chefs to express their culinary creativity. These collaborations have resulted in innovative F&B concepts that are scaled nationwide, benefiting both the chefs, through experience and exposure, and the hospitality industry, by enhancing guest dining experiences.
The impact of Matbakhi’s model is far-reaching, benefiting the entire ecosystem of hotels, guests, and chefs, and leading to a more vibrant F&B landscape. For hotels, it means additional revenue options through catering, cloud kitchens, and optimized operations, along with access to advanced technology that enriches guest experiences, ultimately tripling the hotel’s net operating income.
Hassan Ahdab, president of hotel operations at Dur Hospitality, sees Matbakhi as a vanguard in the evolution of hotel F&B offerings, bringing variety to guests, digitizing their experiences, and streamlining operations.
Matbakhi’s vision extends beyond F&B, as it aims to develop a tech-enabled, concierge-like ecosystem centered around guests. This comprehensive solution not only differentiates the hotel’s value proposition and boosts sales per room but also enhances the overall quality of hospitality experiences in Saudi Arabia.