According to a report by the Mutakata Foundation, a “data analysis platform,” the Saudi restaurant and cafe market is worth approximately SR100 billion and is growing rapidly, but this growth has been challenged by the density of stores (112,000 in 2024) and the compression of profit margins due to rising delivery application fees, with 38% of new stores exiting within a short period of time. By “Al-Ikhbariya” channel.
annual growth rate
The most notable points of the report and market analysis (2021-2024) showed that the market size increased from 80 billion riyals to about 100 billion riyals with an average annual growth rate of about 7%, and the number of operating restaurants and cafes doubled from 57,000 in 2021 to more than 112,000 in 2024. This reduced the average revenue per store from SR1.4 million to less. More than 900,000 riyals.
Expansion and profitability
Regarding ‘Profitability and Delivery’, the report found that delivery apps account for 40% of fast restaurant sales, making them a major sales channel, and that commission fees have reached high levels in Saudi Arabia, with approximately 38% of restaurants and cafes that opened during the study period withdrawing from the market within a year and a half of opening.
He pointed out that there are 18,000 restaurants in Riyadh and 12,000 in Jeddah, concentrated in major cities.
The report noted that growth in the number of stores is outpacing growth in demand, putting serious pressure on small and medium-sized businesses.
A report by the Mukatafah Foundation, a “platform specializing in data analysis,” reveals that the Saudi restaurant and cafe market is growing rapidly, reaching a size of nearly SR100 billion. However, this growth is fraught with challenges. According to information released by the Ekbariya channel, 38% of new stores exited the market in a short period of time due to pressure on profit margins due to the density of stores (112,000 stores by 2024) and high fees for delivery applications.
annual growth rate
The report highlights key points and market analysis (2021-2024), showing that the market size has increased from 80 billion riyals to nearly 100 billion riyals, with a compound annual growth rate of approximately 7%. The number of open restaurants and cafes doubled from 57,000 in 2021 to more than 112,000 in 2024, resulting in average revenue per restaurant dropping from SR1.4 million to less than SR900,000.
Expansion and profitability
Regarding ‘Profitability and Delivery’, the report noted that delivery applications are the main sales channel accounting for 40% of fast food restaurants’ sales, and commissions have reached high levels in Saudi Arabia. It was noted that approximately 38% of restaurants and cafes that opened during the study period exited the market within one and a half years of operation.
The report noted a significant concentration in large cities, with 18,000 restaurants in Riyadh and 12,000 in Jeddah.
The report highlighted that the growth in the number of stores is outpacing the growth in demand, putting serious pressure on small and medium-sized businesses.
