From a kingdom built on oil riches to a nation fast becoming a global food and hospitality powerhouse, Saudi Arabia's restaurant industry is feasting on unprecedented growth, with its market value soaring to SAR 48.7 billion in 2023 as tourism booms and dining habits evolve.
Key Takeaways
- The Saudi restaurant market size reached SAR 48.7 billion in 2023, reflecting a compound annual growth rate (CAGR) of 8.5% from 2019 to 2023 driven by rising disposable incomes and tourism.
- Saudi Arabia's foodservice sector, including restaurants, grew by 11.2% year-on-year in Q4 2023, fueled by Vision 2030 tourism initiatives.
- The number of restaurant outlets in Saudi Arabia increased to 25,400 in 2023, up 14% from 22,300 in 2020 due to urbanization.
- Saudi restaurant revenues hit SAR 52.1 billion in 2023, with 14.3% YoY growth from pandemic recovery.
- Average annual revenue per restaurant outlet was SAR 2.05 million in 2023 across Saudi Arabia.
- QSR chains generated SAR 16.8 billion in 2023, representing 32% of total restaurant revenue.
- The Saudi restaurant sector employed 450,000 workers in 2023, a 19% increase from 2020.
- Saudization rate in restaurants reached 28.5% in 2023, up from 18% in 2019.
- Average monthly salary for restaurant managers in Saudi was SAR 12,400 in 2023.
- 65% of Saudi consumers aged 18-34 dine out weekly in 2023 surveys.
- 72% of diners prefer Saudi or Arabic cuisine in restaurants per 2023 polls.
- Average spend per restaurant visit was SAR 65.2 in 2023 for families.
- Saudi QSR market sees 28% rise in drive-thru usage in 2023.
- Plant-based menu items grew 35% in restaurants by 2023.
- AI-powered ordering adopted by 22% of chains in 2023.
The Saudi restaurant industry is booming due to rising incomes and tourism.
Consumer Behavior
- 65% of Saudi consumers aged 18-34 dine out weekly in 2023 surveys.
- 72% of diners prefer Saudi or Arabic cuisine in restaurants per 2023 polls.
- Average spend per restaurant visit was SAR 65.2 in 2023 for families.
- 58% of consumers use delivery apps for restaurant orders monthly in 2023.
- Health-conscious meals chosen by 41% of diners in 2023.
- Riyadh diners average 4.2 restaurant visits per month in 2023.
- 67% prefer dine-in over delivery post-pandemic in 2023 surveys.
- Vegetarian options demanded by 19% of customers in 2023.
- Loyalty programs used by 55% of frequent diners in 2023.
- Weekend dining peaks at 68% of weekly restaurant traffic in 2023.
- 76% of Gen Z influenced by social media restaurant choices in 2023.
- Average family group size at restaurants is 5.1 persons in 2023.
- 49% prioritize ambiance in restaurant selection per 2023 study.
- Jeddah consumers dine out 3.8 times monthly on average in 2023.
- 62% willing to pay premium for local ingredients in 2023.
- Solo dining increased to 14% of visits in urban areas 2023.
- 81% check online reviews before visiting restaurants in 2023.
- Coffee shop visits average 7.2 per month for 25-34 age group in 2023.
- 53% prefer halal-certified restaurants exclusively in 2023 surveys.
- Post-Ramadan dining surges 45% in first week per 2023 data.
- Dammam diners favor QSR 52% of visits in 2023.
- 69% of consumers value quick service in restaurants 2023.
- Female diners increased 28% in evening slots since 2021 to 2023.
- 44% experiment with international cuisines monthly in 2023.
- Sustainable packaging preferred by 37% of delivery users 2023.
- Peak dining hour is 8-10 PM, 55% of daily traffic in 2023.
- 73% of tourists dine at local restaurants during visits in 2023.
Consumer Behavior Interpretation
Here’s a confident and engaging one-sentence interpretation that balances wit with serious insight:
In a defiantly social and discerning new era, young Saudi diners are voting with their riyals for local flavors and vibrant in-person experiences, while still demanding the convenience of apps, healthier options, and Instagrammable proof of it all.
Employment and Workforce
- The Saudi restaurant sector employed 450,000 workers in 2023, a 19% increase from 2020.
- Saudization rate in restaurants reached 28.5% in 2023, up from 18% in 2019.
- Average monthly salary for restaurant managers in Saudi was SAR 12,400 in 2023.
- QSRs employed 180,000 staff in 2023, 40% of total restaurant workforce.
- Female employment in Saudi restaurants rose to 22% of workforce in 2023.
- Riyadh restaurants provided jobs to 165,000 people in 2023.
- Kitchen staff turnover rate in Saudi restaurants was 34.2% annually in 2023.
- Average employees per restaurant outlet was 18.2 in 2023 nationwide.
- Training hours per employee in top Saudi chains averaged 45 hours yearly in 2023.
- Expat workers comprised 71.5% of restaurant staff in 2023.
- Jeddah's restaurant employment totaled 85,000 jobs in 2023, up 14%.
- Front-of-house staff salaries averaged SAR 4,200 monthly in 2023.
- Saudization compliance fines affected 12% of restaurants in 2023.
- Dammam restaurants employed 45,000 workers in 2023.
- Part-time employment in cafes reached 25% of workforce in 2023.
- Chef salaries in fine dining averaged SAR 9,800 monthly in 2023.
- Total restaurant workforce growth was 7.8% YoY in 2023.
- Youth employment (18-25) in restaurants was 32% of total staff in 2023.
- Labor productivity per employee in QSRs was SAR 112,000 revenue in 2023.
- Makkah seasonal jobs in restaurants hit 20,000 during Hajj 2023.
- Eastern Province restaurant jobs totaled 78,000 in 2023.
- Average workweek for restaurant staff was 48.3 hours in 2023.
- Saudis in service roles increased 25% to 45,000 in 2023.
Employment and Workforce Interpretation
The Saudi restaurant industry is proving it's no small fry, having seasoned its workforce with a hefty 19% more jobs since 2020, though it still leans heavily on expat labor and must constantly turn up the heat on training and retention to keep up with its own sizzling growth and Saudization goals.
Market Size and Growth
- The Saudi restaurant market size reached SAR 48.7 billion in 2023, reflecting a compound annual growth rate (CAGR) of 8.5% from 2019 to 2023 driven by rising disposable incomes and tourism.
- Saudi Arabia's foodservice sector, including restaurants, grew by 11.2% year-on-year in Q4 2023, fueled by Vision 2030 tourism initiatives.
- The number of restaurant outlets in Saudi Arabia increased to 25,400 in 2023, up 14% from 22,300 in 2020 due to urbanization.
- Full-service restaurants accounted for 42% of the total Saudi restaurant market value in 2022, valued at SAR 19.8 billion.
- Saudi quick-service restaurants (QSR) segment expanded at a CAGR of 9.8% between 2021 and 2023, reaching SAR 15.2 billion in sales.
- The overall F&B market in Saudi Arabia, with restaurants comprising 35%, hit SAR 140 billion in 2023 per government data.
- Restaurant industry growth in Riyadh alone contributed SAR 18.4 billion to GDP in 2023, a 13.5% rise from prior year.
- Saudi restaurant sector projected to reach SAR 75 billion by 2028, with 7.9% CAGR from 2024-2028.
- Limited-service restaurants grew 16% in outlet numbers to 12,500 in 2023 across major cities.
- Tourism-driven restaurant revenue surged 22% in 2023, adding SAR 9.1 billion to the sector total.
- Saudi restaurant market penetration rate reached 78% of urban population in 2023, up from 65% in 2019.
- The sector's market share in total hospitality reached 28% in 2023, valued at SAR 48.7 billion.
- Jeddah's restaurant market expanded to SAR 11.2 billion in 2023, with 9.3% growth rate.
- Dammam's restaurant outlets grew 18% to 3,200 in 2023, contributing SAR 4.5 billion.
- Overall Saudi F&B outlets including restaurants totaled 45,000 in 2023, up 12% YoY.
- Restaurant market CAGR in Eastern Province was 10.2% from 2020-2023.
- Saudi restaurant industry added SAR 2.8 billion in new investments in 2023.
- Cloud kitchen segment within restaurants grew 25% to SAR 3.4 billion in 2023.
- Fine dining restaurants market valued at SAR 6.7 billion in 2023, 8% growth.
- Saudi restaurant sector's GDP contribution rose to 1.8% in 2023 from 1.4% in 2020.
- Total restaurant sales volume reached 1.2 billion meals served in 2023.
- QSR market share in Saudi restaurants hit 31% in 2023, SAR 15.1 billion.
- Cafes and casual dining grew to 9,800 outlets, 15% increase in 2023.
- Saudi restaurant market in Holy Cities (Makkah/Madinah) valued at SAR 8.9 billion in 2023.
- Industry-wide expansion rate was 7.6% in outlet additions per capita in 2023.
- Saudi restaurant sector valuation per outlet averaged SAR 1.92 million in 2023.
- Growth in restaurant density reached 4.2 outlets per 10,000 residents in urban areas by 2023.
- Total market expansion in Asir region was SAR 2.1 billion with 11% CAGR 2020-2023.
- Saudi restaurant industry forecasted 9.1% growth for 2024 post-2023 base of SAR 48.7B.
- Independent restaurants held 55% market share by outlets in 2023, totaling 14,000 sites.
Market Size and Growth Interpretation
Saudi Arabia's restaurant scene is feasting on its own success, serving up SAR 75 billion in ambition for 2028, a future clearly cooked by tourism's surge and the nation's growing appetite to dine out.
Revenue and Financials
- Saudi restaurant revenues hit SAR 52.1 billion in 2023, with 14.3% YoY growth from pandemic recovery.
- Average annual revenue per restaurant outlet was SAR 2.05 million in 2023 across Saudi Arabia.
- QSR chains generated SAR 16.8 billion in 2023, representing 32% of total restaurant revenue.
- Riyadh restaurants collectively earned SAR 20.4 billion in 2023, up 15% from 2022.
- Profit margins in Saudi full-service restaurants averaged 12.4% in 2023.
- Online delivery contributed SAR 8.7 billion to restaurant revenues in 2023, 17% of total.
- Jeddah's restaurant sector revenue reached SAR 12.1 billion in 2023 with 10.2% growth.
- Casual dining revenue grew to SAR 10.5 billion in 2023, CAGR 9.7% since 2020.
- Saudi restaurant EBITDA averaged 18.2% of revenue in 2023 for top performers.
- Fine dining segment revenues were SAR 7.2 billion in 2023, up 11% YoY.
- Cloud kitchens generated SAR 4.1 billion revenue in 2023, 24% growth rate.
- Independent outlets' total revenue was SAR 28.6 billion in 2023, 55% market share.
- Dammam restaurants recorded SAR 5.3 billion revenue in 2023, 13% increase.
- Makkah restaurant revenues peaked at SAR 5.8 billion during Hajj 2023 season.
- Average ticket size in Saudi QSRs rose to SAR 28.4 in 2023 from SAR 24.1 in 2022.
- Saudi restaurant sector's total operating costs were SAR 38.9 billion in 2023.
- Cafes contributed SAR 9.3 billion to revenues in 2023, 18% YoY growth.
- Top 10 restaurant chains amassed SAR 11.4 billion revenue in 2023.
- Food cost percentage in Saudi restaurants averaged 32.5% of revenue in 2023.
- Labor costs represented 28.7% of total restaurant revenues in 2023 nationwide.
- Eastern Province restaurants generated SAR 7.6 billion revenue in 2023.
- Rent expenses for restaurants averaged 9.2% of revenue in urban Saudi in 2023.
- Saudi restaurant net profit growth was 16.8% in 2023 for mid-sized outlets.
- Delivery platform commissions deducted SAR 1.2 billion from restaurant revenues in 2023.
- Asir region restaurant revenues hit SAR 2.4 billion with 12.5% growth in 2023.
- Saudi restaurant industry total assets valued at SAR 65.4 billion end of 2023.
Revenue and Financials Interpretation
Even as delivery apps take a significant bite out of profits, the Saudi restaurant industry is feasting on a remarkable post-pandemic boom, with every segment from quick-service to fine dining serving up double-digit growth and proving that the nation's appetite for dining out is both voracious and valuable.
Trends and Innovations
- Saudi QSR market sees 28% rise in drive-thru usage in 2023.
- Plant-based menu items grew 35% in restaurants by 2023.
- AI-powered ordering adopted by 22% of chains in 2023.
- Contactless payments reached 89% adoption in Saudi restaurants 2023.
- Ghost kitchens numbered 1,800 in 2023, up 40% YoY.
- Fusion cuisine outlets increased 26% to 2,100 in 2023.
- Sustainability initiatives in 41% of restaurants by 2023.
- Robot servers trialed in 15 Riyadh outlets in 2023.
- Menu digitalization at 67% of QSRs in 2023.
- Local sourcing rose to 58% of ingredients in 2023 chains.
- Experiential dining concepts grew 19% in fine dining 2023.
- NFC loyalty apps used by 48% of customers in 2023.
- Zero-waste kitchens in 12% of upscale restaurants 2023.
- Jeddah pop-up restaurants numbered 120 in 2023 events.
- VR menu previews in 8 luxury venues by end 2023.
- Healthy bowl menus surged 42% menu placements 2023.
- Blockchain traceability for seafood in 25% chains 2023.
- Outdoor dining expanded 31% post-regulations lift 2023.
- Personalized nutrition apps integrated by 18% outlets 2023.
- Cafes with co-working spaces up 27% to 650 in 2023.
- Dammam food trucks legalized, 450 operating in 2023.
- Lab-grown meat pilots in 3 restaurants announced 2023.
- AR filters for dishes promoted by 35% influencers 2023.
- Energy-efficient kitchens retrofitted in 29% venues 2023.
- Subscription meal plans offered by 14% QSRs in 2023.
- Voice ordering via assistants in 21% drive-thrus 2023.
- Makkah smart vending for Hajj meals, 500 units 2023.
Trends and Innovations Interpretation
While Saudi Arabia’s restaurants are now a dizzying ecosystem of drive-thru lanes and ghost kitchens, they are equally being reshaped by a serious, tech-forward conscience that’s serving up plant-based options, tracing seafood with blockchain, and quietly wondering if the robot server will remember their no-pickle request.
Sources & References
- Reference 1STATISTAstatista.comVisit source
- Reference 2MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 3EUROMONITOReuromonitor.comVisit source
- Reference 4PWCpwc.comVisit source
- Reference 5VISION2030vision2030.gov.saVisit source
- Reference 6SAUDIGAZETTEsaudigazette.com.saVisit source
- Reference 7ARABNEWSarabnews.comVisit source
- Reference 8OXFORDBUSINESSGROUPoxfordbusinessgroup.comVisit source
- Reference 9SAUDIGASTRONOMYMOMENTsaudigastronomymoment.comVisit source
- Reference 10ENGLISHenglish.alarabiya.netVisit source