LimitedService Restaurants in Saudi Arabia
LimitedService Restaurants in Saudi Arabia
LimitedService Restaurants in Saudi Arabia
Saudi Arabia
Euromonitor International
February 2023
LIMITED-SERVICE RESTAURANTS IN SAUDI ARABIA Passport i
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LIMITED-SERVICE RESTAURANTS IN SAUDI ARABIA Passport 1
LIMITED-SERVICE RESTAURANTS IN
SAUDI ARABIA
KEY DATA FINDINGS
▪ Foodservice value sales rise by 13% in current terms in 2022 to SAR26.8 billion
▪ Outlet numbers rise by 1% to 15,893 in the same year
▪ Middle Eastern limited-service restaurants is the best performing category in 2022, with
foodservice value sales rising by 19% in current terms to SAR6.1 billion
▪ Various franchisees is the leading player in 2022, with a foodservice value share of 14%
▪ Foodservice value sales are set to grow at a current value CAGR of 12% (2022 constant
value CAGR of 9%) over the forecast period to SAR46.5 billion
▪ The number of outlets is expected to increase at a CAGR of 5% to 20,319 over the same
period
2022 DEVELOPMENTS
Vision 2030 opens up dining out opportunities while inflation spurs fast
current value growth
Vision 2030 is making Saudi Arabia one of the most attractive markets for investors
worldwide. The goals of Vision 2030 are to increase the appeal of Saudi Arabia, not least in
terms of entertainments like consumer foodservice. Prior to the Coronavirus (COVID-19)
pandemic, consumers travelled abroad and spent huge amount of money in other countries,
mainly due to the restrictive environment in Saudi Arabia with regard to entertainment. For
example, shops or restaurants should not play music, and a lack of domestic tourist destinations
and highly limited attractions encouraged consumers to holiday outside the country. Thus,
Vision 2030 aims to open up the market with a focus on entertainments, such as foodservice,
including limited-service restaurants. Hajj and Umrah had always represented different events
and spaces, engendering significant sales performances. The onset of the COVID-19 crisis saw
the suspension of flights and domestic pilgrims. However, as the threat of the pandemic and
related restrictions eased, the complete resumption of Hajj and Umrah in 2022 boosted
consumer foodservice, including limited-service restaurants. In this vein, owners of major brands
like Al-Tazaj (chicken limited-service restaurants) opened new outlets in Makkah and Madinah,
to cater to the millions of pilgrims coming from around the world for events.
Meanwhile, relatively high inflation continued to play a key role in the double-digit current
value growth registered in limited-service restaurants in 2022, driven by chained operators.
Global inflation was a significant driver of price points, not least in light of the War in Ukraine,
which led to increases in raw materials and production costs in foodservice. Accordingly, unit
prices in limited-service restaurants rose significantly in current terms, which boosted the value
sales performances of businesses and categories. Despite the inflationary environment, which
fostered higher cost of living in the market, consumer foodservice benefited from the strong
purchasing power of many consumers. Nonetheless, the economic climate did make many
consumers more budget-conscious and price-sensitive. Thus, consumers were more aware of
their spending and many of them started to focus on offers and promotions, rather than quality,
to maintain and/or lure new customers.
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promote their platforms and apps. For example, HungerStation and Jahez offer free or low
delivery fees on a wide variety of brands to encourage the consumer to order online, rather than
visit the branded outlet and buy a meal on the premises. Meanwhile, McDonald’s has
invigorated its online ordering system via its GMA concept (Global McApp). This is basically a
large screen where you make orders beside the cashier. Even cashiers in some McDonald’s
branches, especially in shopping malls’ food courts, no longer take orders. Orders have to be
made through GMA and they are categorised as online sales.
CATEGORY DATA
Table 1 Limited-Service Restaurants by Category: Units/Outlets 2017-2022
outlets
2017 2018 2019 2020 2021 2022
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'000 transactions
2017 2018 2019 2020 2021 2022
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Limited-Service
Restaurants
--- Independent Chicken 36,572.3 36,215.7 37,305.2 18,839.0 23,514.7 25,034.4
Limited-Service
Restaurants
--- Chained Chicken 74,501.4 75,170.7 75,405.7 49,544.6 61,138.6 68,993.5
Limited-Service
Restaurants
-- Chicken Limited- 111,073.7 111,386.4 112,710.9 68,383.5 84,653.2 94,027.9
Service Restaurants
--- Independent Burger 7,520.5 7,596.7 7,953.5 4,767.2 6,241.5 6,781.0
Limited-Service
Restaurants
--- Chained Burger 205,554.0 207,812.4 234,984.3 157,658.8 223,946.8 250,286.7
Limited-Service
Restaurants
-- Burger Limited- 213,074.5 215,409.1 242,937.8 162,426.0 230,188.4 257,067.7
Service Restaurants
--- Independent Bakery 884,155.3 874,907.9 889,723.2 514,921.2 599,557.2 600,252.6
Products Limited-
Service Restaurants
--- Chained Bakery 46,611.1 45,582.9 46,591.2 28,735.6 35,169.6 38,227.5
Products Limited-
Service Restaurants
-- Bakery Products 930,766.4 920,490.8 936,314.4 543,656.8 634,726.8 638,480.1
Limited-Service
Restaurants
--- Independent Asian 12,918.7 12,539.7 12,704.3 6,934.2 6,483.6 6,504.5
Limited-Service
Restaurants
--- Chained Asian 8,165.8 7,967.7 8,076.8 4,410.5 4,366.0 4,506.5
Limited-Service
Restaurants
-- Asian Limited- 21,084.5 20,507.5 20,781.0 11,344.7 10,849.6 11,011.0
Service Restaurants
- Limited-Service 1,620,349.8 1,612,885.8 1,667,942.5 992,865.3 1,230,698.2 1,300,468.3
Restaurants by Type
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
SAR million
2017 2018 2019 2020 2021 2022
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Restaurants
-- Pizza Limited- 970.6 1,020.0 1,116.5 721.1 893.6 994.4
Service Restaurants
--- Independent Middle 3,153.9 3,266.9 3,315.1 2,417.0 3,191.7 3,711.1
Eastern Limited-Service
Restaurants
--- Chained Middle 1,710.1 1,722.4 1,845.5 1,408.9 1,938.9 2,406.6
Eastern Limited-Service
Restaurants
-- Middle Eastern 4,864.0 4,989.3 5,160.6 3,825.8 5,130.7 6,117.8
Limited-Service
Restaurants
--- Independent Latin 6.2 6.7 7.2 3.7 4.7 5.1
American Limited-
Service Restaurants
--- Chained Latin 98.3 103.5 114.0 68.1 90.5 105.2
American Limited-
Service Restaurants
-- Latin American 104.5 110.2 121.2 71.8 95.2 110.3
Limited-Service
Restaurants
--- Independent Ice 126.4 134.5 143.8 85.6 107.6 113.6
Cream Limited-Service
Restaurants
--- Chained Ice Cream 1,080.8 1,194.2 1,270.2 770.9 987.4 1,078.2
Limited-Service
Restaurants
-- Ice Cream Limited- 1,207.2 1,328.7 1,414.0 856.5 1,095.0 1,191.8
Service Restaurants
--- Independent Fish 34.0 36.4 39.2 13.0 17.1 19.3
Limited-Service
Restaurants
--- Chained Fish 17.2 19.1 19.5 6.3 7.2 5.8
Limited-Service
Restaurants
-- Fish Limited-Service 51.1 55.5 58.7 19.2 24.3 25.1
Restaurants
--- Independent 538.0 583.5 606.8 356.5 382.7 404.7
Convenience Stores
Limited-Service
Restaurants
--- Chained Convenience 146.7 160.0 178.8 119.8 137.3 150.2
Stores Limited-Service
Restaurants
-- Convenience Stores 684.7 743.5 785.7 476.4 519.9 555.0
Limited-Service
Restaurants
--- Independent Chicken 617.6 621.0 648.9 378.2 465.6 518.6
Limited-Service
Restaurants
--- Chained Chicken 2,003.7 2,087.8 2,119.3 1,630.2 1,976.6 2,330.0
Limited-Service
Restaurants
-- Chicken Limited- 2,621.3 2,708.8 2,768.2 2,008.4 2,442.2 2,848.6
Service Restaurants
--- Independent Burger 164.0 170.6 180.4 123.7 158.8 177.8
Limited-Service
Restaurants
--- Chained Burger 5,292.0 5,594.9 6,403.2 4,921.8 6,603.6 7,598.9
Limited-Service
Restaurants
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% Units/Outlets growth
2021/22 2017-22 CAGR 2017/22 Total
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Service Restaurants
-- Convenience Stores Limited-Service 2.5 2.0 10.3
Restaurants
--- Independent Chicken Limited-Service 1.5 -0.7 -3.5
Restaurants
--- Chained Chicken Limited-Service 4.6 0.9 4.8
Restaurants
-- Chicken Limited-Service Restaurants 2.9 0.1 0.3
--- Independent Burger Limited-Service 2.9 1.8 9.2
Restaurants
--- Chained Burger Limited-Service Restaurants 4.3 4.9 26.9
-- Burger Limited-Service Restaurants 4.2 4.6 25.3
--- Independent Bakery Products Limited- -2.1 -1.7 -8.1
Service Restaurants
--- Chained Bakery Products Limited-Service 2.9 1.2 6.1
Restaurants
-- Bakery Products Limited-Service Restaurants -1.4 -1.3 -6.3
--- Independent Asian Limited-Service -1.3 -4.0 -18.3
Restaurants
--- Chained Asian Limited-Service Restaurants -0.9 -3.3 -15.6
-- Asian Limited-Service Restaurants -1.1 -3.7 -17.1
- Limited-Service Restaurants by Type 1.2 -0.1 -0.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
% transaction growth
2021/22 2017-22 CAGR 2017/22 Total
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Service Restaurants
--- Chained Convenience Stores Limited- 6.6 -6.5 -28.6
Service Restaurants
-- Convenience Stores Limited-Service 4.5 -9.3 -38.7
Restaurants
--- Independent Chicken Limited-Service 6.5 -7.3 -31.5
Restaurants
--- Chained Chicken Limited-Service 12.8 -1.5 -7.4
Restaurants
-- Chicken Limited-Service Restaurants 11.1 -3.3 -15.3
--- Independent Burger Limited-Service 8.6 -2.0 -9.8
Restaurants
--- Chained Burger Limited-Service Restaurants 11.8 4.0 21.8
-- Burger Limited-Service Restaurants 11.7 3.8 20.6
--- Independent Bakery Products Limited- 0.1 -7.5 -32.1
Service Restaurants
--- Chained Bakery Products Limited-Service 8.7 -3.9 -18.0
Restaurants
-- Bakery Products Limited-Service Restaurants 0.6 -7.3 -31.4
--- Independent Asian Limited-Service 0.3 -12.8 -49.7
Restaurants
--- Chained Asian Limited-Service Restaurants 3.2 -11.2 -44.8
-- Asian Limited-Service Restaurants 1.5 -12.2 -47.8
- Limited-Service Restaurants by Type 5.7 -4.3 -19.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
% value growth
2021/22 2017-22 CAGR 2017/22 Total
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% value
Company 2018 2019 2020 2021 2022
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% value
Brand Global Brand Owner 2019 2020 2021 2022
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outlets
2022 2023 2024 2025 2026 2027
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'000 transactions
2022 2023 2024 2025 2026 2027
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Restaurants
-- Other Limited- 10,526.1 11,244.5 11,995.4 12,847.0 13,863.5 15,035.9
Service Restaurants
--- Independent Pizza 3,518.2 3,685.9 3,910.6 4,138.3 4,425.1 4,721.7
Limited-Service
Restaurants
--- Chained Pizza 22,129.3 23,884.1 25,813.7 27,743.0 30,039.4 32,719.0
Limited-Service
Restaurants
-- Pizza Limited- 25,647.6 27,570.0 29,724.3 31,881.3 34,464.5 37,440.7
Service Restaurants
--- Independent Middle 114,204.7 126,965.0 140,134.0 155,550.3 173,929.7 193,615.3
Eastern Limited-Service
Restaurants
--- Chained Middle 73,424.6 84,781.6 97,274.3 110,772.7 126,014.7 145,074.4
Eastern Limited-Service
Restaurants
-- Middle Eastern 187,629.2 211,746.6 237,408.3 266,323.0 299,944.5 338,689.7
Limited-Service
Restaurants
--- Independent Latin 121.3 129.6 134.9 143.0 151.5 162.8
American Limited-
Service Restaurants
--- Chained Latin 2,852.0 3,045.0 3,266.0 3,511.0 3,791.0 4,096.0
American Limited-
Service Restaurants
-- Latin American 2,973.3 3,174.6 3,400.9 3,654.0 3,942.5 4,258.8
Limited-Service
Restaurants
--- Independent Ice 7,853.6 8,165.9 8,622.2 9,161.4 9,819.0 10,521.4
Cream Limited-Service
Restaurants
--- Chained Ice Cream 40,504.9 42,468.4 45,308.9 48,765.2 53,060.8 57,413.4
Limited-Service
Restaurants
-- Ice Cream Limited- 48,358.4 50,634.3 53,931.1 57,926.5 62,879.8 67,934.8
Service Restaurants
--- Independent Fish 397.7 427.0 460.5 495.9 538.3 590.2
Limited-Service
Restaurants
--- Chained Fish 147.0 156.9 168.3 181.4 196.6 211.2
Limited-Service
Restaurants
-- Fish Limited-Service 544.7 583.9 628.8 677.3 734.9 801.3
Restaurants
--- Independent 15,624.8 16,384.4 17,177.7 18,070.8 19,122.7 20,288.7
Convenience Stores
Limited-Service
Restaurants
--- Chained Convenience 8,577.6 9,065.0 9,765.8 10,586.5 11,450.0 12,430.2
Stores Limited-Service
Restaurants
-- Convenience Stores 24,202.3 25,449.5 26,943.5 28,657.3 30,572.7 32,718.9
Limited-Service
Restaurants
--- Independent Chicken 25,034.4 26,800.5 29,148.6 31,737.1 35,334.0 39,800.8
Limited-Service
Restaurants
--- Chained Chicken 68,993.5 76,269.5 84,616.8 94,562.9 107,824.9 124,181.2
Limited-Service
Restaurants
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SAR million
2022 2023 2024 2025 2026 2027
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Restaurants
-- Middle Eastern 6,117.8 6,994.4 7,772.8 8,630.4 9,595.3 10,687.0
Limited-Service
Restaurants
--- Independent Latin 5.1 5.4 5.6 5.9 6.1 6.5
American Limited-
Service Restaurants
--- Chained Latin 105.2 112.7 119.9 127.5 135.9 144.6
American Limited-
Service Restaurants
-- Latin American 110.3 118.1 125.4 133.4 142.0 151.2
Limited-Service
Restaurants
--- Independent Ice 113.6 119.5 125.2 132.2 140.6 149.4
Cream Limited-Service
Restaurants
--- Chained Ice Cream 1,078.2 1,143.0 1,214.3 1,298.0 1,398.7 1,503.6
Limited-Service
Restaurants
-- Ice Cream Limited- 1,191.8 1,262.5 1,339.4 1,430.2 1,539.3 1,653.0
Service Restaurants
--- Independent Fish 19.3 20.6 22.0 23.4 25.0 27.0
Limited-Service
Restaurants
--- Chained Fish 5.8 6.1 6.5 7.0 7.5 8.0
Limited-Service
Restaurants
-- Fish Limited-Service 25.1 26.7 28.5 30.4 32.5 34.9
Restaurants
--- Independent 404.7 419.2 434.6 452.6 473.1 495.3
Convenience Stores
Limited-Service
Restaurants
--- Chained Convenience 150.2 159.0 170.0 181.9 194.6 208.5
Stores Limited-Service
Restaurants
-- Convenience Stores 555.0 578.2 604.6 634.6 667.8 703.8
Limited-Service
Restaurants
--- Independent Chicken 518.6 562.8 606.2 652.8 717.7 796.4
Limited-Service
Restaurants
--- Chained Chicken 2,330.0 2,607.8 2,874.5 3,180.1 3,575.3 4,026.6
Limited-Service
Restaurants
-- Chicken Limited- 2,848.6 3,170.6 3,480.7 3,832.9 4,293.0 4,822.9
Service Restaurants
--- Independent Burger 177.8 193.6 208.5 224.1 239.8 256.3
Limited-Service
Restaurants
--- Chained Burger 7,598.9 8,428.6 9,210.7 10,058.5 10,935.0 11,934.5
Limited-Service
Restaurants
-- Burger Limited- 7,776.7 8,622.2 9,419.2 10,282.5 11,174.8 12,190.8
Service Restaurants
--- Independent Bakery 5,053.1 5,409.6 5,769.9 6,173.8 6,622.9 7,050.5
Products Limited-
Service Restaurants
--- Chained Bakery 1,247.7 1,353.7 1,449.1 1,563.4 1,693.3 1,838.0
Products Limited-
Service Restaurants
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% Units/Outlets growth
2022/2023 2022-27 CAGR 2022/27 Total
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% transaction growth
2022/2023 2022-27 CAGR 2022/27 Total
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% value growth
2022/2023 2022-27 CAGR 2022/27 Total
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