Saudi Arabia is becoming a prime spot for food lovers and entrepreneurs, making it a great time for those who want to start a restaurant business in Saudi Arabia. The restaurant business is growing rapidly, with new cafes and dining spots popping up in every city. Factors like the young population, increasing tourism and changing lifestyles have been encouraging people to open a restaurant or cafe in Saudi Arabia. Whether you want to start a restaurant or coffee shop business in Saudi Arabia, this market offers you immense opportunity for growth and success.
If you are thinking of setting up a restaurant business in Saudi Arabia, read our blog to learn more about the process and its benefits.
Cafe and Restaurant Business in Saudi Arabia
Saudi Arabia’s Cafe and Restaurant sector is undergoing a major shift and experiencing a rapid growth. The rise of online food delivery and takeaway options has changed how customers engage with restaurants, leading to a significant increase in demand for services in recent years. Food outlets are no longer available just in major cities – smaller cities and towns are also seeing a rise in new cafes and restaurants, thanks to the growth of shopping malls and lifestyle centres.
The quick service restaurant (QSR) segment is highly active, with the market expected to go from $9.23 billion in 2024 to $16.62 billion by 2033, as Saudis prefer fast, convenient, dining options and mobile ordering. Social media trends, food festivals, and an increasing focus on healthy and sustainable eating are influencing the sector, prompting restaurants to provide more varied menus and innovative dining experiences. As Saudi Arabia progresses towards modernisation, the cafe and restaurant business is quickly adapting, presenting numerous opportunities for both local entrepreneurs and international brands.
Benefits of Starting a Restaurant in Saudi Arabia
Strong Market Growth:
The restaurant business in Saudi Arabia is set to reach $51.64 billion by 2033, with a growth rate of 7.66% per year.
Young and Growing Population:
The growing and urbanised population in Saudi Arabia is generating a high demand for new dining options and experiences.
Tourism Boom:
Saudi Arabia welcomed 30 million international tourists in 2024, with international visitors boosting the demand for a variety of food and drink options.
Digital Transformation:
Around 65% of Saudi consumers prefer ordering food digitally, leading to a rise in investment in food-tech startups, making it easier to connect with customers through technology.
Government Support:
Vision 2030 promotes innovation, modernization, and foreign investment, simplifying the process of business setup in Saudi Arabia.
Diverse Consumer Preferences:
Saudis are open to various international cuisines and health-conscious menus, resulting in diverse customer preferences and potential for your restaurant concept.
Prime Location:
Cities like Riyadh, Jeddah, and Dhahran have busy spots that are perfect for your restaurant investment.
Sustainability Trends:
There’s a growing interest in menu choices that are locally sourced, healthy and sustainable.
How to Start a Restaurant Business in Saudi Arabia?
Starting a restaurant business in Saudi Arabia might be the best decision but the process is a bit complex. It involves various steps such as choosing the right location, managing legal documents, getting the necessary licenses, and meeting health and safety standards. Each of these steps has its specific requirements, and it can seem confusing sometimes, especially for a newcomer or someone who doesn’t have much familiarity with local regulations.
Given such challenges, it’s advisable to get assistance from industry experts like Analytix, who have 16+ years of experience in setting up businesses just like yours in Saudi Arabia. With proper guidance, you can avoid committing costly mistakes and manage the business setup process more easily.
How Analytix helps your Business
Starting a restaurant business in Saudi Arabia can be a bit challenging, especially if you are a newcomer. There are several legal, regulatory, and operational steps that need to be carefully managed, like registering your business, finding the right location, obtaining licenses, hiring staff, and so on. But when you have experts like Analytix with you, it doesn’t seem challenging anymore.
With our deep market expertise and local knowledge, we help you understand the requirements, avoid common mistakes, and position your business for long-term growth. Whether you’re starting a new business or expanding an existing brand to Saudi Arabia, we assure your entry into the Saudi market will be a smooth and easy one.
This is what we do best!
Conclusion
The restaurant business in Saudi Arabia is full of opportunities for those who are open to change and innovation. With rise in tourism, changing consumer preferences, and supportive business environment, now is the best time for you to start a restaurant or expand an existing one to Saudi Arabia.
If you want to start a business in Saudi Arabia or grow your brand, reach out to Analytix to make your business setup easier and get a successful launch.
