What's next for UK/US Afro-Caribbean grocers?

West African cuisine is rapidly gaining global recognition, moving beyond its traditional diaspora communities to captivate a wider audience in the UK and US. This culinary ascent, driven by factors like the rising popularity of Afrobeats music, increased travel, social media influence, and a growing appreciation for authentic, heritage-rich food experiences, presents a golden opportunity for Afro-Caribbean grocers to expand their offerings and cater to an evolving market.

Yet, with growing opportunity comes new challenges. This blog explores the steps UK and US Afro-Caribbean groces can take to ensure smooth cash flow and unlimited growth. 

The rise of West African flavours

Recent years have seen West African cuisine highlighted as a top culinary trend. In 2023, OpenTable data identified it as the top trending cuisine, with a 72% year-over-year rise. This momentum is set to continue, with food experts and chefs predicting its sustained popularity in 2024 and 2025.

The growing interest in West African cuisine presents several avenues for Afro-Caribbean grocers to thrive. 

1. Expanded product ranges

Dedicate more shelf space to popular West African ingredients like those listed above. Consider sourcing directly from African suppliers to offer authentic products.

2. Prepared foods and meal kits

Capitalize on the convenience trend by offering ready-to-eat West African meals, such as jollof rice with various protein options, or meal kits with pre-portioned ingredients and recipes for popular dishes.

3. Multiple marketing, community engagement and education opportunities

Due to the publicised health benefits of this new cuisine, West African food grocers can engage their audience by hosting cooking demonstrations, tasting events, or workshops featuring West African cuisine. Provide recipe cards and educational materials to introduce new customers to the flavors and preparation methods. Partner with West African chefs or food influencers for promotional events, recipe development, or even product lines.

4. Online presence and delivery

Strengthen online platforms to reach a broader customer base. Offer delivery services, especially for specialized ingredients that might not be readily available elsewhere.

Maximise profit through better payment processes

As Afro-Caribbean grocers increasingly source products directly from West Africa, efficient cross-border payment management becomes crucial for profitability. Traditional banking methods often come with hidden fees, unfavourable exchange rates, and lengthy transfer times, all of which can erode your margins.

Here's how better cross-border payment management can help you take advantage of the emerging trends:

1. Reduce foreign exchange (FX) costs

Open business accounts that allow you to hold and transact in multiple currencies, including West African currencies where available. This reduces the need for constant currency conversions and helps you avoid costly exchange rate markups charged by traditional banks.

2. Negotiate better exchange rates

When dealing with significant volumes, explore specialist payment providers who offer more competitive exchange rates closer to the mid-market rate. Some platforms also allow you to lock in exchange rates for future payments (forward contracts), protecting you from adverse currency fluctuations.

3. Time your payments

Keep an eye on exchange rate trends and try to make payments when the rate is most favorable. Even small percentage differences can add up to significant savings over time.

4. Minimise transaction fees

Although transaction fees are expected when making cross-border payments, there are several ways you can minimise this. 

Instead of sending individual payments for each invoice, consolidate multiple smaller payments into fewer, larger transactions. This can significantly reduce fixed transaction fees charged per transfer. Verto’s bulk payments feature allows this to happen in just a few clicks. 

Explore payment solutions that utilise local banking networks (where available in West African countries) rather than expensive international wire transfers (SWIFT). Local transfers are often faster and incur lower fees. Verto’s Local Accounts feature allow you to open accounts in African countries like Nigeria, Kenya, South Africa and more with no local entity needed. 

Partner only with with payment providers who offer clear, upfront fee structures. Avoid those with hidden intermediary bank charges that can surprise you after the transaction is complete.

5. Improve cash flow and supply chain efficiency

A lot of this depends on your payment provider. Pick one that offers faster settlement times, a single platform with improved visibility for cash flow as well as various features that will automate your processes and reduce manual error. 

6. Mitigate risk

For large or frequent transactions, consider hedging strategies like forward contracts to protect against unexpected losses due to currency fluctuations between the time you place an order and when you pay for it.

Reputable cross-border payment providers also often have robust security measures and ensure compliance with international regulations (like AML and KYC), reducing the risk of fraud and regulatory penalties.

Discover more in our compliance ebook

The landscape of food preferences is shifting, and West African cuisine is at the forefront of this change. By strategically embracing these emerging trends and optimizing their cross-border payment processes, UK and US Afro-Caribbean grocers can not only reinforce their role as cultural hubs but also secure a significant share in the rapidly expanding market for diverse and authentic global foods, while simultaneously boosting their bottom line.