Saudi Arabia’s restaurant sector is one of the most appealing markets in the Middle East for new eateries. In 2025, the food service industry is valued at over $30 billion and is expected to grow by more than 8% every year, with cities like Jeddah and Dammam leading the way in new restaurant launches.
If you are planning to start a restaurant in Saudi Arabia, read this blog to get a clear understanding of the latest trends and requirements that will help you succeed in this competitive market.
Key Points Every Restaurant Owner Should Know
1. Market Trends & Opportunities
The food and dining sector in Saudi Arabia has been rapidly growing due to a youthful population, increased incomes, and growing preference for dining out. Whether you’re opening a fine dining place or a casual cafe, there’s never been a better time to open a restaurant in Saudi Arabia. International restaurant brands are flourishing in cities like Jeddah and Dammam, while traditional Saudi cuisine remains popular among both locals and foreigners. By 2032, the sector will likely hit $62 billion, with a strong appetite for both local and international cuisines.
2. Location Matters
One of the biggest success factors for any restaurant in Saudi Arabia is its location. Choose areas with high foot traffic, easy access, and a customer base that matches your restaurant’s concept. Take into account local competition and the neighbourhood’s demographics to confirm there is demand for your food and dining style. A well-chosen location can draw in more customers and help your restaurant excel in this competitive market.
3. Understanding Local Preferences
Before you start a restaurant in Saudi Arabia, understanding your audience is important. Menus must be customized to local tastes and preferences, as some of the major international chains such as McDonald’s and KFC have done. All food must be halal, and there’s a growing demand for healthy, varied and international food choices. Saudi dishes like Kabsa and Saleeg are well-liked, but Asian and Latin American tastes are also becoming popular.
4. Licensing & Compliance
To start a restaurant in Saudi Arabia, you need to follow these steps:
- Register your business with the Ministry of Commerce.
- Get a commercial registration and municipal permit.
- Comply with health, safety, and building standards, including getting approval from the Civil Defense Department.
- Adhere to all the technical and hygiene regulations.
5. Embracing Digital Transformation
People in major cities have adopted a new dining experience by digital ordering and online food delivery. When you start a restaurant in Saudi Arabia, integrate tech solutions as it helps reach more customers and improves service from digital menus to managing inventory in real-time.
6. Hiring & Training
Employees should be familiar with local customs, food safety practices, and service standards. That’s why hiring and training employees is crucial for your business’s success. Proper training guarantees a great dining experience, and compliance with Saudi labour regulations, helping your business grow.
7. Financial Management
Employees should be familiar with local customs, food safety practices, and service standards. That’s why hiring and training employees is crucial for your business’s success. Proper training guarantees a great dining experience and compliance with Saudi labour regulations, helping your business grow.
How can Analytix Help Start Your Restaurant Business in Saudi Arabia?
Turning your restaurant concept into reality is a thrilling yet challenging journey. With the rapidly evolving market, changing preferences, restaurant license requirements, and local regulations, it can seem overwhelming.
That’s why we’re here – to help you! We offer expert assistance throughout the process – from market research to strategic planning – we get everything done so you can start a restaurant in Saudi Arabia with confidence.
Conclusion
Starting a restaurant in Saudi Arabia presents great opportunities for those who are well-prepared and ready, as people are constantly looking for new dining experiences, flavours, and cuisines. Understanding what people want, local preferences, and regulations can help you create an experience that people want to keep coming back to.
Whenever you are ready to take the next step and start your business, we’re right here with all the support and guidance you will need along the way. We’re just a call away!
