Full-Service Restaurants in Saudi Arabia

PROSPECTS

Economic reform affects full-service restaurants

Ongoing economic reform, which included the introduction of an expatriate dependent levy, impacted the spending power of many consumers in 2017. This resulted in fewer visits to full-service restaurants compared to previous years, with the channel also impacted by some expats leaving the country for good.

Discounting and promotional offers commonplace in full-service restaurants

Most restaurants in Saudi Arabia have turned to discounting and promotions in an effort to combat the slowdown in consumer spending. Such promotions include fixed price menus.

Various challenges faced by full-service restaurants

In Saudi Arabia, there remains a cultural perception that jobs in the hospitality industry are not particularly attractive due to low wages, hence the trend towards employing expats. However, with ongoing Saudization, the competitive advantage of low labour costs could soon be coming to an end.

COMPETITIVE LANDSCAPE

Pizza Hut remains the leading brand

Pizza Hut, which is operated by various franchisees, remained the leading brand in full-service restaurants in value sales terms in 2017. It was also the leading brand in terms of number of outlets and transactions.

Little Caesar’s Pizza one of the best performers in 2018

Bazbaza International Trading’s Little Caesar’s Pizza was one of the best performing brands in full-service restaurants in 2017. The chain benefited from the opening of 13 new outlets.

Saudi Arabians always on the lookout for new dining experiences

Saudi Arabians are fond of trying new things and are always on the lookout for new dining experiences. For this reason, new brands usually perform very well.

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