Full-service Restaurants in The Middle East and Africa

March 2023

Full-service restaurants in the Middle East experienced a significant decline during the pandemic, due to their relatively high price and the nature of the category, that relies on dine-in experience. The post-pandemic recovery is accelerating every year, and several markets have already hit pre-pandemic value levels. Healthy growth will continue to be seen over the forecast period across the region, however, high inflation and low purchasing power in some of the region's markets might slow down

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This report comes in PPT.

Key Findings

Full-service restaurants are set to recover by 2025

Full-service restaurants in the Middle East showed smaller than average decline over the last five years and continue demonstrating healthy growth. The UAE was the first market to recover after the pandemic in 2022, with Israel expected to reach pre-pandemic value in 2022, while other markets are showing slower recovery pace.

The impact of the pandemic is different across various full-service restaurants

The strong association between pizza restaurants and food delivery as well as its infrastructure designed for drive-through has resulted in a lower impact during the pandemic on pizza full-service restaurants. Moreover, one of the prominent types of restaurants within the region is Middle Eastern full-service restaurants which is the biggest category within the region. Although Latin American restaurants witnessed the lowest decline in absolute value, they were hit the most by the pandemic.

Saudi Arabia and the UAE will contribute to 80% of future sales

Over the next five years, the two biggest markets will drive regional sales by developing urban areas, attracting high-income expats and tourists, utilising government investments and hosting global events. While the UAE is already a well-known financial, economic and travel hub, Saudi Arabia has introduced a Vision 2030 programme to transfer the country to a world-class vibrant society, which is expected to boost the economy along with full-service restaurants.

New innovative strategies are required by key players to overcome the current challenges

The market players have to cope with the dynamic changes occurring within the industry. It is important that they re-shape their strategies to survive the current supply chain challenges. Moreover, developing the e-commerce infrastructure is essential in order to meet the rise in demand for this channel within the region.

Key findings
Decline in full-service restaurants across the Middle East and Africa
Full-service restaurants are recovering by 2025
UAE is the first market to fully recover after pandemic
The region relies on Middle Eastern cuisine and develops strong interest in pizza
Middle Eastern full-service restaurants witnesses highest absolute decline
UAE is the only country with positive absolute value growth
Standalone restaurants in the Middle East were a core location to rely on during pandemic
Retail restaurants benefit from modernisation and urban investments
FSR is widely fragmented within the Middle East and Africa
Spur Corp continues to lead FSR
Two big markets, UAE and Saudi Arabia, are main sources of sales for the largest companies
Keeping outlets and following new trends helped big brands to sustain their ranking
Saudi Arabia and UAE will contribute 80% of sales growth by attracting tourists and expats
Small markets will sustain growth through expanding populations and developing e-commerce
United Arab Emirates: Market context
United Arab Emirates: Competitive and retail landscape
Saudi Arabia: Market context
Saudi Arabia: Competitive and retail landscape
Israel: Market context
Israel: Competitive and retail landscape
South Africa: Market context
South Africa: Competitive and retail landscape
Egypt: Market context
Egypt: Competitive and retail landscape
Nigeria: Market context
Nigeria: Retail landscape
Morocco: Market context
Morocco: Competitive and retail landscape

Consumer Foodservice

Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.

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