In 2021, limited-service restaurants bounced back with double digit growth in value sales, almost enough to compensate for the loss in sales in the previous year due to COVID-19 pandemic and ensuing lockdowns. As the roll-out of the COVID-19 vaccine took place and the fear of the virus subsided, consumer returned to their favourite foodservice outlets.
Chicken limited-service restaurants perform particularly well in Saudi Arabia, both chained as well as independent chicken limited-service restaurants. This is due to the popularity of chicken shawarma amongst locals and expatriates.
During the pandemic, players in limited-service restaurants lost sales through eat-in service as restaurants across the kingdom were forced to close their doors to walk-in customers. A large number of brands in this category already had online ordering and delivery platforms in placed, which helped them to ensure the continuation of takeaway and delivery services, making it easier to switch their operations online.
In the forecast period, limited-service restaurants is anticipated to see double digit growth in 2022 in terms of both foodservice value sales and the number of transactions. As the majority of the population is vaccinated, consumers will be eager to return to their favourite foodservice outlets in the forecast period.
In addition to well-established home delivery and takeaway services, which enabled some players and chains to offset their losses and even forge ahead in some instances, the phenomenon of ghost kitchens is something which will take off in the short-term. Ghost kitchens are professional food preparation and cooking facilities, set up for the creation of delivery-only meals.
In the forecast period, local players are expected to perform well, whether chained or independent, as limited-service restaurant owners are more and more investing in human resources and offering opportunities to managers at international brands to apply their experience on local brands. This is the reason why we increasingly see independent limited-service restaurants become a chain, such as I’m Hungry and Signature Juice factory.
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Fast Food
Limited-Service Restaurants (LSR) combine fast food and 100% home delivery/takeaway outlets. These outlets offer limited menus with items that can be prepared quickly. Customers typically order, pay, and pick up their order from a counter, though some outlets can have limited table service. This also includes 100% Home Delivery/Takeaway which provide no facilities for consumption on the premises. LSR tend to specialize in one or two main entrees such as hamburgers, pizza, or chicken, but they usually also provide drinks, salads, ice cream, dessert, etc. Food preparation is generally simple and involves one or two steps, allowing for kitchen staffs generally consisting of younger, unskilled workers rather than professional chefs. Other key characteristics include: • A standardised and restricted menu • Tight individual portion control on all ingredients and on the finished product • Individual packaging of each item • Counter service • For Chained Limited Service Restaurants, chained and franchised operations which operate under a uniform fascia and corporate identity • Any outlet offering full-service restaurant seating with servers would be excluded, even if delivery service is available.
See All of Our DefinitionsThis report originates from Passport, our Fast Food research and analysis database.
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