Egyptians cut back on expenses, but not on their coffee

Despite a fumbling economy, the quaint Egyptian café has never been busier. Their success is part of a much wider story.

Axel Rangel Garcia

Egyptians cut back on expenses, but not on their coffee

The café sector in Egypt is experiencing a remarkable boom, despite mounting economic challenges, with inflation driving up the cost of both drinks and rent. This resilience highlights how cafés have become a defining feature of everyday life for Egyptians, who view them as spaces where leisure and work converge, where youth-led enterprise thrives, and where generations come together.

From the traditional ahwa (coffeehouse) tucked down side streets to the modern café sprouting beneath flyovers, a new economy is emerging, one that reflects the country’s shifts in culture, behaviour, and consumption patterns. Cafés are also riding a resurgence in tourism, triggering a new symbiotic relationship. In Cairo today, not a single neighbourhood or alleyway is without somewhere to sit and drink coffee.

Egypt’s economic crisis is deepening, but many Egyptians still prefer to gather at café tables, even if it means cutting back in other areas. “There’s nowhere else for us to relax or meet friends,” says Youssef Onsi, a government employee in his 40s. “Sports clubs are no longer affordable, and homes aren’t always suitable for gatherings.”

Egypt’s annual inflation rate fell to 12% last month, from 16.5% in May, but this is still high. The price of tea and cocoa rose by a slightly gentler 6.5% but soft drinks and juices jumped by 18.9%. Still, cafés continue to draw crowds, and in some areas, patronage is on the rise, reflecting a psychological and social bond with the café, which is seen as a place to escape life’s daily pressures.

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The historic "El-Fishawy" coffee shop

Locals and tourists

From local hangouts, cafés have slowly become part of Egypt’s tourism fabric. The country welcomed around 8.7 million visitors in the first half of 2025 (up 24% on the same period last year), and the boom has spurred demand for café services, particularly in areas of interest to tourists such as Khan El-Khalili, Al-Muizz Street, Old Cairo, and around museums. Some cafés are even tourist destinations in their own right, such as Naguib Mahfouz Café, or the heritage cafés of Al-Muizz Street, which blend Fatimid architecture with a traditional Eastern coffee experience.

“Café tourism exists in many countries like France and Italy, where cafés are intertwined with tourist landmarks,” says Dr Magdy Sleem, who specialises in tourism. “Egypt has unique touristic assets that can foster this model, especially in historic Cairo, Alexandria, Aswan, and Luxor.”

With Greater Cairo's urban sprawl and the rapid expansion of bridges in the city, under-bridge cafés and restaurants have sprung up, as they have in car parks and neglected spaces, where buildings are repurposed to utilise wasted space. Yet alongside this are concerns over pollution, safety, and traffic congestion in a city that lacks pedestrian pathways.

Cafés under bridges cause obvious traffic disruption because they are set up in spaces never intended for such ventures, say engineers. For some, the spread of café culture has affected their quality of life. One resident of Nasr City, who asked to speak anonymously, said: "We can't sleep at night because of the blaring music and noise from a café under the nearby bridge. Our lives have become unbearable."

A tourism boom has spurred demand for cafés, particularly in areas like Khan El-Khalili, Al-Muizz Street, Old Cairo, and around museums

Socioeconomic factors

With high rates of unemployment and soaring living costs, many young Egyptians have chosen to open small cafés as a source of income. Such ventures can be established with minimal capital requirements and rely primarily on a good location near residential areas, universities, hospitals, or courts to attract customers. Mohamed Gomaa, who owns a small café in the Zeitoun district, is one such example. "I started my business with a modest sum," he says. "Today, I have four employees and a monthly income that provides me with stability."

In an effort to support small- and medium-sized enterprises (SME's), the government is looking at ways to support café owners. A senior official at a state-owned bank says it finances café owners through special programmes, provided they keep proper records, adding that SMEs "contribute around 80% of Egypt's GDP and employ millions, both formally and informally".

Despite the challenges, cafés report healthy balance sheets and growing demand for public spaces that cater to both leisure and work. In part, this reflects a cultural shift in which the café has evolved into a multifunctional hub. Where once they may have been seen as the domain of pensioners or retirees, today they attract students, businesspeople, and remote workers. As lifestyles evolve, cafés are becoming venues for studying, holding business meetings, watching football, and even having family gatherings.

"Home is too crowded, I can't focus," says Justina Maged, a medical student. "The café has become my favourite place to study." She is not alone. Yet for the café owners, there are still big challenges. Inflation has meant rapidly escalating operational and coffee bean costs. These are passed on to consumers, meaning that the cost of some beverages has tripled over the past year. "A cup of coffee was 30 (Egyptian) pounds a year ago," explains a café owner in Korba. "Today, it's 70 pounds. Yet customers still come because the café has become a social and psychological necessity." More speciality beverages can cost three times that amount.

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Khan El-Khalili popular market, which consists of dozens of cafes, Cairo, March 9, 2024.

An unchanging essence

Cafés in Egypt are no recent phenomenon. In the 20th century, downtown Cairo's cafés were where writers, intellectuals, and politicians met. Iconic venues like Riche, Zahret Al-Bostan, and Al-Fishawy hosted the likes of Naguib Mahfouz for discussions and debates among leftists and liberals. Fast forward to 2025, and though their appearance may have changed, their core function remains: cafés are still spaces for dialogue, albeit with shisha pipes, free Wi-Fi, and plush sofas. It is still a place that brings people together.

There are no precise official statistics on the number of cafés in Egypt, given their unregulated expansion of recent years, but from Cairo to Alexandria, and from Marsa Matrouh to Sharm El-Sheikh, they have become omnipresent. Some upscale neighbourhoods are referred to as "café slums" due to their encroachment onto pavements and streets in places like Heliopolis and Korba.

Cafés remain a lifeline for countless families living on the breadline, providing both a source of income and a social refuge. In a sense, they also embody a fascinating paradox, as they both reflect Egypt's economic crisis and provide a partial remedy by creating jobs and opening up new horizons, especially for the young. Their rapid spread can exacerbate traffic woes and cause headaches for urban planners, but as most Egyptians know, the café is no longer just about a cup of coffee; it is its own economic and social phenomenon, one that tells the story of a country.

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