Restaurant Industry in Saudi Arabia and the Middle East

We have been active (and bullish on) the MENA market since 2008. The restaurant industry will continue to grow but competition is also getting more sophisticated and many companies in the foodservice market are facing shrinking margins. Here are some of our most recent insights for the restaurant industry in Saudi Arabia and the GCC.

Restaurant Industry Update: Six Facts About Growth in the Middle East

  1. The restaurant industry in Saudi Arabia and the GCC is projected to grow over the next few years, with some growing at a faster rate due to government diversification efforts and investments into infrastructure and tourism, as well as cultural changes.
  2. The Saudi hospitality sector (including Hotels and Restaurants & Cafés) has been among the top-growing in the country.

  3. In the KSA, restaurant inflation has been slightly higher than the general consumer price index, indicating restaurants are increasing prices trying to keep up with rising costs.

  4. Western brands have successfully penetrated the market (via master franchisee agreements) and are the leading players in the major limited-service categories such as pizza and burger. [Check the rest of the list by downloading a copy of our research report].

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About Aaron Allen & Associates 

Aaron Allen & Associates works alongside senior executives of the world’s leading foodservice and hospitality companies to help them solve their most complex challenges and achieve their most ambitious aims, specializing in brand strategy, turnarounds, commercial due diligence and value enhancement for leading hospitality companies and private equity firms.

Our clients span six continents and 100+ countries, collectively posting more than $300b in revenue. Across 2,000+ engagements, we’ve worked in nearly every geography, category, cuisine, segment, operating model, ownership type, and phase of the business life cycle.