Saudi Arabia Food Service Market To Experience Steady Growth with CAGR 7.67% from 2025 to 2032; Expanse in the Number of Food Outlets in the Country Aids in Market Augmentation

The global Saudi Arabia food service market size touched the market valuation of USD 34.73 billion in 2024. In 2025, the market is projected to rise from USD 38.81 billion in 2025 to USD 30.63 billion by 2032 growing at a CAGR of 7.67% from 2025 to 2032. Fortune Business Insights™ presents this information in its report titled, “Saudi Arabia Food Service Market Size, Share & Industry Analysis, By Type (Full-Service Restaurants, Quick Service Restaurants, Institutes, and Others), By Service Type (Dine-In, Takeaway, and Delivery), By Restaurant Type (Chained and Independent), By Cuisine Type (Western Cuisine, Middle Eastern Cuisine, Asian Cuisine, and Others), and Country Forecast, 2025-2032”

The demand for food services in the Saudi Arabia has risen rapidly in the current years with the opening of shopping and food malls and launch of home delivery services. Earlier, these services were limited to major cities, but now these services are now penetrating in tier 1 and tier 3 cities of the country. With increasing spending on out-of-home foods and food products, the demand for food services in Saudi Arabia is expected to skyrocket. Saudi government’s 2030 vision is underway, allowing more branded outlets to open in Riyadh and Jeddah. Riyadh houses more international brands than Jeddah, due to brands aiming to expand their operations and businesses.

Blessings Basket Company and Pizza Inn to Partner by Adopting Franchising Business Model

In January 2024, Blessings Basket Company signed an agreement with the “Rave Restaurant Group”, through its subsidiary Pizza Inn, to expand its presence in Saudi Arabia through franchising model.  With this agreement, Pizza Inn will open 50 new restaurants in Saudi Arabia, starting with two stores in January 2024.

Increasing Income Levels and Penchant To Consume Fast Foods are Driving the Country’s Market Growth

The increasing levels of overall income levels has boosted the consumers’ inclination to eat outside and experience outdoor dining. The concept of food service outlets is attaining popularity across the Kingdom of Saudi Arabia and franchising also remains one of the most popular growth models for the country’s businesses. Majority of the millennial population is wanting to try new fast food chains and spend on quick service restaurants is increasing over traditional family restaurants. Also, in the last few years, Cipriani, The Cheesecake Factory, and Hakkasan have entered the Saudi Arabia by opening their food outlets.

Negative aspects of online food ordering have become one of the Saudi Arabia food service market growth restraints, the quality of food delivered has made customers wary of ordering from them. The plastic packaging for the food products is the factor which fuels the problem of plastic pollution.

Prominent Market Players Are Expanding Geographically To Augment Their Market Positions

After the COVID-19 pandemic, the market took a hit and market players were not ready to enter into volatile markets. Since, then markets have started expanding their businesses so as to expand their operations at a steady rate. In September 2024, Gong Cha, a Taiwanese beverage brand scaled-up its activities by opening its franchise in Saudi Arabia. This move was made by capitalizing on the consumer’s demand for bubble tea in the Middle East.

List of Key Market Players

• Starbucks Corporation (U.S.)
• Yum! Brands, Inc. (U.S.)
• McDonald’s Corporation (U.S.)
• Restaurant Brands International Inc. (Canada)
• Domino’s Pizza, Inc. (U.S.)
• Papa John's International, Inc. (U.S.)
• ALBAIK Food Systems Company Ltd. (Saudi Arabia)
• Herfy Food Services Co. JSC, KSA. (Saudi Arabia)
• KUDU Company for Food and Catering (Saudi Arabia)
• Hardee’s Restaurants LLC (U.S.)

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https://www.fortunebusinessinsights.com/press-release/saudi-arabia-food-service-market-10933

Key Industry Development

• July 2025: Saudi-based Tanmiah Food Company partnered with McDonald's Saudi Arabia to increase the supply of locally sourced, larger-sized poultry suitable for deboning and further processing.

Further Report Findings

• Full-service restaurants captured the largest Saudi Arabia food service market share as they have wide range of food products and items on their menus. The culture and tradition of family outings has increased the footfalls and demand for food service and spurred the consumption of food in the full-service restaurants. They took the market share of 50.94% in the year 2024.
• Western cuisine has taken the reign in the country as high number of people have started visiting fast-food chains such as McDonald’s, Burger King, Domino’s, Pizza Hut, KFC, Starbucks, and various other restaurants. Apart from these restaurants, full-service restaurants and fine-dining eateries are also attracting foreign tourists to try local Middle Eastern cuisine.
• The Saudi Arabia’s tourism sector is moving a notable pace with it being a hub for tourism, attracting international tourists and travellers. In addition, country’s food & beverage industry is one of the largest in the Middle East region, making the fast food consumption steadily popular in Saudi Arabia.

Table of Segmentation