Report Overview

Saudi Arabia Food Service Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Food Service Market size was estimated at USD 32.33 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Food Service Market size is projected to grow at a CAGR of 8.5% reaching a value of USD 57.23 billion by 2031. Prominent drivers of the market include a rising demand for takeaway and home delivery services, the growing popularity of dining out, and the increasing number of food outlets across the country, including tier 2 and tier 3 cities. The food service market is evolving rapidly, shaped by shifting demographics, urbanization, and changing consumer preferences. With nearly 37% of the population under the age of 25, younger consumers are steering trends towards diverse global dining experiences and modern culinary concepts. The presence of over 13 million expatriates has enriched the food landscape, increasing demand for international cuisines and fusion dishes that blend local and global flavors. Tourism is a major growth catalyst, with 93.5 million tourist arrivals and USD 49.33 billion in spending recorded in 2022, opening opportunities for foodservice operators in emerging entertainment zones and tourist hotspots. Experiential dining is on the rise, with themed and immersive restaurants attracting younger audiences. The coffee shop segment is booming, with Saudi Arabia hosting over 40% of the Middle East's branded coffee outlets, supported by significant coffee imports and the transformation of cafés into social and workspaces. Simultaneously, the expanding hospitality sector—expected to grow from 400,000 to 854,000 hotel rooms by 2030—is encouraging investments in diverse dining formats and partnerships with international brands, supported by tech-driven service innovations like digital ordering and loyalty programs. Together, these factors are positioning the Saudi Arabia food service market for substantial and sustained growth.

Food Service – Overview

Food service refers to the industry involved in preparing, serving, and delivering food and beverages to customers outside their homes. It includes a wide range of establishments such as restaurants, cafes, catering services, cafeterias, fast-food outlets, and institutional kitchens in schools, hospitals, and workplaces. The primary goal of food service is to provide convenient, high-quality meals that meet the dietary preferences and needs of diverse consumers. It encompasses various aspects like menu planning, food safety, customer service, and hospitality management. The industry plays a crucial role in the economy by generating employment and supporting agricultural and food production sectors.

Saudi Arabia Food Service Market

Growth Drivers

Expanding Tourism and Hospitality Sector

Saudi Arabia’s tourism industry is undergoing a major transformation, driven by public and private sector initiatives aimed at broadening the scope of travel beyond traditional business and religious tourism. This strategic shift aligns with the Kingdom’s broader Vision 2030 goals, which aim to modernize the economy and diversify income sources. As a result, significant changes are anticipated in the retail and food & beverages (F&B) landscape. Investments in entertainment are expected to enhance the quality and variety of F&B offerings, with household spending on domestic entertainment projected to rise from 2.9% in 2015 to 6% by 2030. The expansion of sectors such as cinemas, sports, and live concerts is already creating new opportunities for foodservice businesses, particularly through the emergence of mobile F&B units and food trucks. These developments are not limited to major cities like Riyadh and Jeddah but are extending to regions like Al Ula, which has hosted cultural events such as ‘Winter at Tantora’ since 2019. This festival introduced high-end pop-up dining experiences and a range of temporary food service outlets, reflecting the evolving nature of Saudi Arabia’s F&B and tourism sectors.

Challenges

Quality Concerns in Online Food Delivery

Quality concerns in online food delivery are a key restraint for the growth of Saudi Arabia Food Service Market. Inconsistent food temperature, spillage, delayed deliveries, and compromised packaging affect customer satisfaction and brand loyalty. Consumers increasingly demand reliable service and high-quality meals that match dine-in standards, but many foodservice operators struggle to maintain consistency during transit. Moreover, lack of control over third-party delivery platforms can further hinder quality assurance. These challenges not only affect customer trust but also limit the growth potential of the online segment, which is otherwise poised for rapid expansion due to changing consumption habits.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Food Service Market

Escalating geopolitical tensions could adversely affect the growth of Saudi Arabia Food Service Market. Heightened conflicts disrupt global supply chains, leading to shortages and increased prices of imported food products, on which the Kingdom heavily relies. This can strain operational costs for foodservice providers and limit menu diversity. Additionally, political instability may affect foreign direct investments and delay tourism-related projects, reducing footfall in restaurants, cafés, and entertainment venues. Consumer sentiment may also shift towards caution, lowering discretionary spending on dining out. Such challenges can hinder market growth and force businesses to re-evaluate sourcing strategies, pricing, and customer engagement in an uncertain environment.

Saudi Arabia Food Service Market

Segmental Coverage

Saudi Arabia Food Service Market – By Type of Food Service

Based on type of food service, Saudi Arabia Food Service Market is divided into Full-Service Restaurants, Quick Service Restaurants (QSRs), Cafés & Bars, Street Food & Kiosks, and Cloud Kitchens/Ghost Kitchens segments. The full-service restaurants segments holds the highest share of Saudi Arabia Food Service Market by type of food service. It is driven by its diverse menu offerings that cater to a broad range of preferences. These establishments are favored for family outings, social gatherings, and corporate meetings due to their ability to accommodate varied tastes. As the frequency of family dining increases, the number of full-service restaurants continues to grow. Additionally, establishments that serve alcohol are gaining traction, with rising alcohol consumption contributing to network expansion within this segment to meet evolving consumer demands.

Saudi Arabia Food Service Market – By Ownership

Saudi Arabia Food Service Market by ownership is bifurcated into Independent Outlets and Chain Restaurants/Franchises segments. The chain restaurants/franchises segment is expected to hold a higher share in Saudi Arabia Food Service Market by ownership during the forecast period. Over the past decade, local players have increasingly entered this segment, particularly in cities like Riyadh and Jeddah, by launching fast-food chains that offer affordable local alternatives to international brands. Notable examples include Maestro Pizza and AlBaik, which have significantly expanded their market presence. This chain restaurants/franchises segment is projected to witness the highest CAGR, driven by growing interest from international chains aiming to establish a foothold in the Gulf region and intensified competition among local brands targeting untapped markets across the country.

Saudi Arabia Food Service Market – By Distribution Channel

On the basis of distribution channel, Saudi Arabia Food Service Market is segmented into Dine-In Services, Takeaway, Online Delivery Platforms, and Drive-thru Services.

Competitive Landscape

Major players operating in Saudi Arabia Food Service Market include Hardee’s Restaurants LLC, Americana Restaurants International PLC, Starbucks Corporation, Herfy Food Services Co. JSC, Yum! Brands, Inc., KUDU Company for Food and Catering, Riyadh International Catering Corporation, McDonald’s Corporation, Restaurant Brands International Inc., Shahia Food Limited Company, M.H. Alshaya Co. WLL, Domino’s Pizza, Inc., Papa John's International, Inc., and ALBAIK Food Systems Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2024 - Meituan, a China-based on-demand services company, launched its food delivery platform, KeeTa, in Riyadh, Saudi Arabia. This marks its first international expansion after debuting in Hong Kong in 2023.

Scope of the Report

By Type of Food Service

• Full-Service Restaurants

• Quick Service Restaurants (QSRs)

• Cafés & Bars

• Street Food & Kiosks

• Cloud Kitchens/Ghost Kitchens

By Ownership

• Independent Outlets

• Chain Restaurants/ Franchises

By Distribution Channel

• Dine-In Services

• Takeaway

• Online Delivery Platforms

• Drive-thru Services

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Food Service Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Disposable Income & Urbanization
         2. Tourism Growth
         3. Expansion of International Brands
      2. Restraints
         1. Quality Concerns in Online Delivery
         2. Supply Chain Challenges
      3. Opportunities
         1. Cloud Kitchens & Digital Platforms
         2. Specialty Coffee & Café Culture
      4. Challenges
         1. Competitive Pressure
         2. Regulatory Compliance
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Food Service Market: Marketing Strategies
5. Saudi Arabia Food Service Market: Pricing Analysis
6. Saudi Arabia Food Service Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type of Food Service
         1. Full-Service Restaurants
         2. Quick Service Restaurants (QSRs)
         3. Cafés & Bars
         4. Street Food & Kiosks
         5. Cloud Kitchens/Ghost Kitchens
      2. By Ownership
         1. Independent Outlets
         2. Chain Restaurants/ Franchises
      3. By Distribution Channel
         1. Dine-In Services
         2. Takeaway
         3. Online Delivery Platforms
         4. Drive-thru Services
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Saudi Arabia Food Service Market, Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Oping Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Food Service Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Hardee’s Restaurants LLC
   2. Americana Restaurants International PLC 
   3. Starbucks Corporation
   4. Herfy Food Services Co. JSC, KSA
   5. Yum! Brands, Inc.
   6. KUDU Company for Food and Catering
   7. Riyadh International Catering Corporation 
   8. McDonald’s Corporation
   9. Restaurant Brands International Inc.
   10. Shahia Food Limited Company 
   11. M.H. Alshaya Co. WLL 
   12. Domino’s Pizza, Inc
   13. Papa John's International, Inc
   14. ALBAIK Food Systems Company
   15. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Saudi Arabia Food Service Market Segmentation

Figure 2   Saudi Arabia Food Service Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Saudi Arabia Food Service Market Size, By Value (USD Billion), 2019–2031

Figure 5   Saudi Arabia Food Service Market Share, By Type of Food Service, By Value (USD Billion) 2019–2031

Figure 6   Saudi Arabia Food Service Market Share, By Ownership, By Value (USD Billion) 2019–2031

Figure 7   Saudi Arabia Food Service Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

List of Tables

Table 1      Saudi Arabia Food Service Market Share, By Type of Food Service, By Value (USD Billion) 2019–2031

Table 2      Saudi Arabia Food Service Market Share, By Ownership, By Value (USD Billion) 2019–2031

Table 3      Saudi Arabia Food Service Market Share, By Distribution Channel, By Value (USD Billion) 2019–2031

Table 4      Hardee’s Restaurants LLC Company Overview

Table 5      Hardee’s Restaurants LLC Financial Overview

Table 6      Americana Restaurants International PLC Company Overview

Table 7      Americana Restaurants International PLC Financial Overview

Table 8      Starbucks Corporation Company Overview

Table 9      Starbucks Corporation Financial Overview

Table 10    Herfy Food Services Co. JSC, KSA Company Overview

Table 11    Herfy Food Services Co. JSC, KSA Financial Overview

Table 12    Yum! Brands, Inc. Company Overview

Table 13    Yum! Brands, Inc. Financial Overview

Table 14    KUDU Company for Food and Catering Company Overview

Table 15    KUDU Company for Food and Catering Financial Overview

Table 16    Riyadh International Catering Corporation Company Overview

Table 17    Riyadh International Catering Corporation Financial Overview

Table 18    McDonald’s Corporation Company Overview

Table 19    McDonald’s Corporation Financial Overview

Table 20    Restaurant Brands International Inc. Company Overview

Table 21    Restaurant Brands International Inc. Financial Overview

Table 22    Shahia Food Limited Company: Company Overview

Table 23    Shahia Food Limited Company Financial Overview

Table 24    M.H. Alshaya Co. WLL Company Overview

Table 25    M.H. Alshaya Co. WLL Financial Overview

Table 26    Domino’s Pizza, Inc Company Overview

Table 27    Domino’s Pizza, Inc Financial Overview

Table 28    Papa John's International, Inc Company Overview

Table 29    Papa John's International, Inc Financial Overview

Table 30    ALBAIK Food Systems Company: Company Overview

Table 31    ALBAIK Food Systems Company Financial Overview