Saudi Arabia restaurant industry gaining ground
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Casual dining restaurants are one of the
fastest growing segments in the restaurant industry and almost all the major international casual dining restaurants players have already penetrated the Saudi market, while several other chains have either signed up for franchising or are in the planning phase. Among the top international casual dining restaurants chains present in Saudi Arabia are Applebee’s, Outback Steak House, Chilis and TGI Fridays.
Given the population size the main casual dining restaurants markets in the Kingdom are Riyadh, Jeddah and the Eastern Province, but even smaller markets are becoming attractive hubs for investment.
Dr Adnan Soufi, CEO, SEDCO Holding said: “The trend continues as Saudi Arabia’s prosperous economy consistently shows healthy growth, leading to higher disposable income, which in turn prompts consumers to frequent foodservice outlets.”
These three main factors; high disposable income, global exposure and limited sources of entertainment – together with the ever increasing number of Malls in the country – present an immense opportunity not only for casual dining restaurants to capture larger market share and expand at a much faster pace. Accordingly, operators in the casual dining restaurants market are expected to proceed with their expansion strategy and the number of outlets is anticipated to reach approximately 17,000 by 2014, whilst the overall value is predicted to grow at a CAGR of 6% in constant value terms to reach SR28.9bn by 2014.
