During the COVID-19 pandemic, cafés/bars was negatively affected across outlets, transactions and foodservice value sales by the COVID-19 pandemic and lockdown measures. This is due, in part, to the fact that a large number of chained cafés and chained specialist coffee and tea shops in Saudi Arabia faced temporary closures even after the lifting of national lockdown restrictions and a significant number of outlets also closed their doors permanently as a result of the difficult conditions of 2020.
The number of cafés is growing fast in Saudi Arabia. Coffee is a popular drink among locals and throughout 2021 many new cafés opened, whether chained or independent.
During the COVID-19 pandemic, juice/smoothie bars recorded considerable losses – although less dramatic than many other subcategories in value terms – as they found it more difficult to switch to online sales. Independent juice/smoothie bars saw a particularly heavy drop in the number of transactions as many brand owners in this subcategory lacked awareness of how to register on aggregator apps to limit losses during the initial lengthy national lockdown period.
At the beginning of the forecast period, it is expected that both chained and independent cafés/bars will record a strong recovery in foodservice sales and transactions, recording strong double-digit growth immediately as the threat of COVID-19 pandemic subsides. Some chained brands in cafés/bars are expected to resume their expansion plans in 2022 and beyond.
Despite economic uncertainty and high inflation in 2022, outlet numbers are expected to bounce back to pre-COVID-19 levels in both chained juice/smoothie bars and independent juice/smoothie bars in the first half of the forecast period. In terms of the number of transactions and foodservice value sales both categories are projected to demonstrate strong growth throughout the forecast period, however chained juice/smoothie bars is expected to consistently outperform independent juice/smoothie bars from 2022 onwards.
In 2021, the spike of home delivery sales experienced during the COVID-19 pandemic and periods of store closures normalised. In addition, in 2021, many outlets added a drive-through option to their existing channels.
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This category encompasses all establishments where the focus is on drinking (either alcoholic or non-alcoholic beverages). While a wide variety of snacks and full meals are offered, it is not uncommon for consumers to only order a drink. As a general rule, establishments deriving 50% of their income or more from the sale of drinks are included here.See All of Our Definitions
This report originates from Passport, our Cafés/Bars research and analysis database.
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