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 Saudi Arabia food service market size was worth USD 34.73 billion in 2024. The market is estimated to grow to from USD 38.81 billion in 2025 to USD 30.63 billion by 2032, exhibhiting  a CAGR of 7.67% during the forecast period.

The significant growth of the market is attributed to the increasing demand for home delivery services in the country and the rising consumption of takeaway foods. Furthermore, number of shopping and food malls has rapidly expanded in Saudi Arabia over the last few years. The trend of opening food outlets in shopping malls, earlier limited only to the country's major cities, has now spread to tier 2 and tier 3 cities in the last decade. Therefore, the increasing number of food outlets and the rising trend of eating outside will boost the market growth.

• For instance, in September 2025, lifestyle retail space in Riyadh and Jeddah is expected to grow to 1.31 million sq. meters by 2027. This growth coincides with the Kingdom's target of attracting 150 million tourists per year in 2030, up from a previous target of 100 million.

Saudi Arabia Food Service Market Trends

Rising Trend of Veganism to Fuel Market Growth

Veganism is a new food trend that is growing strongly in Saudi Arabia and across the globe. Vegans do not eat animal- and dairy-based products, while many also do not eat honey, considering it an animal-derived ingredient. A vegan diet is plant-based and has grown in popularity over the past few years. Health is the primary reason for choosing a vegan diet. Diets based on large amounts of fruits and vegetables positively impact health. Even though this diet was earlier limited to the vegetarian population, it is now popular among all consumers.

Although the market in the Kingdom of Saudi Arabia (KSA) is significantly influenced by Western food culture, healthy food options, such as vegan/plant-based foods, are becoming quite popular among Saudi Arabian consumers. Market players are also working toward spreading awareness among consumers and trying to launch vegan products in the KSA market.

Key takeaways

• In type segmentation, full-service restaurants accounted for around 50.94% of the Saudi Arabian food Service in 2024.
• In  service type segmentation, the delivery segment is projected to grow at a CAGR of 10.38% in the forecast period.

Saudi Arabia Food Service Market Growth Factors

Expansion of International Brands in Saudi Arabia to Fuel Market Growth

In the last few years, many international restaurants and dining chains have entered the Saudi Arabian market, including Cipriani, The Cheesecake Factory, and Hakkasan. Several widely popular fine dining hotels and restaurants have recently entered the KSA market by launching their branches in the country, mainly in Jeddah and Riyadh. Some of them are Scalini, Zuma, and Catch. A growing number of famous chefs in Saudi Arabia are focusing on opening their restaurants, which is an example of the ever-increasing penetration of local and international restaurants in Saudi Arabia’s food service industry.

• For instance, in January 2024, Pizza Inn signed a 50-location franchise agreement with Blessings Basket Company for Saudi Arabia, with the first two locations opened in January 2024 and subsequent locations scheduled annually for the next decade.

Moreover, Riyadh is home to more branded international food outlets than Jeddah. This is due to the global brands expanding their business, and Riyadh is said to be their first choice over Jeddah. With the Saudi government’s 2030 vision underway, more branded outlets are expected to open in both Riyadh and Jeddah during the forecast period.

Increased Spending on Out-of-Home Foods to Drive Market Growth

Growth in household income owing to a rise in the number of dual-income households is a major factor boosting consumers’ spending on outdoor dining. With an increase in the number of working women, families are frequently visiting restaurants or ordering food from outside. This factor is increasing the customer footfall in dine-ins. The concept of food service outlets is gaining popularity across the Kingdom of Saudi Arabia, while franchising remains one of the most popular growth models for the country’s businesses. With a majority of the millennial population leaning toward fast food chains, their spending on quick service restaurants is increasing over traditional family restaurants.

• According to the General Authority for Statistics (GASTAT), in 2016, female participation (17.7%) approximately doubled to the mid-30s in 2021–2024, a sharp increase, reflecting reforms, changes to labour-market policies, and an increase in female employment.

Saudi Arabia Food Service Market Restraints

Adoption of  Online Food Delivery May Hamper Market Growth

Online food ordering is the latest trend in the food service industry, which a vast majority of consumers have adopted. However, some of the negative aspects of online food ordering can make customers wary of using this medium. One of the problems with food delivery is that the quality of the food delivered is often lower than that of a restaurant. Food is often transported over long distances, and its valuable nutrients can be lost over time. In addition, food from delivery services is often packaged in plastic packaging, which can fuel the problem of plastic pollution. These factors are set to hamper the Saudi Arabia food service market growth.

Saudi Arabia Food Service Market Segmentation Analysis

By Type

Based on type, the market is segmented into full-service restaurants, quick-service restaurants, institutes, and others.

The full-service restaurants segment captured a dominant Saudi Arabia food service market share owing to the availability of a wide range of food items on the menu. Families, corporate meetings, and gatherings generally prefer full-service restaurants as they have a variety of food items available for every individual. As family outings become more frequent, the number of full-service restaurants is also increasing. In addition to the food, full-service restaurants that offer alcohol are also growing. Consumption of alcohol is rising each year, and restaurants are expanding their network to cater to this need.

The quick-service restaurants capture the second largest share of the market in terms of market value and are expected to grow with a 8.29% CAGR from 2025 to 2032. The rapid growth in the number of QSR outlets is attributed to the growing penetration of the fast food chains in the country and expected future investments in the country.

By Service Type

Based on the service type, themarket is segmented into dine-in, takeaway, and delivery.

The dine-in segment captures the majority share of the market due to the attraction of foreign tourists to try Turkish, Middle Eastern, and Asian cuisines. Saudi Arabia’s restaurant industry is mainly driven by the huge footfall from tourists, who usually visit restaurants and do not opt for online food delivery and takeaway options in their hotels. This factor is expected to sustain in the long run, and the dominance of the dine-in segment is expected during the forecast period.

With growing urbanization and lifestyle changes among the millennials, coupled with increasing number of migrating families residing in Saudi Arabia, the online food ordering segment is expected to flourish over the next decade. Many online food ordering companies are expanding in the country and are competing with each other to capture the major share of the Saudi Arabian food service industry.

• For instance, in September 2024, Chinese online food delivery giant Meituan launched its international brand Keeta in Saudi Arabia.

By Restaurant Type

On the basis of restaurant type, the market is divided into chain and independent.

The independent segment accounts for more than 70% of the food service market size in the country. Recent trends in Saudi Arabia’s consumer food service include Turkish fine-dining restaurants, Western cuisine fine-dining restaurants, food trucks, and high-end sandwich outlets.

In the last decade, many local market players have entered the chain restaurant segment by opening fast-food chains in the Riyadh and Jeddah to compete with the international chain restaurants by providing a local variety of fast food at a cheaper cost. The Maestro Pizza and AlBaik are examples of local Saudi-based fast food chains strengthening their market footprint in the Saudi Arabia food service market.

The chain segment is expected to grow with the highest CAGR due to the interest of foreign market players to expand in the GULF region and the competition among local brands to capture the untapped smaller markets in the country.

By Cuisine Type

By cuisine type, the market is categorized into Western, Middle Eastern, Asian, and others.

The Western segment dominates the Saudi Arabia food service market share by capturing more than one-third of the market revenue. The dominance of Western cuisine is attributed to the huge inflow of tourists from North America, South America, and Europe.

Visitors visiting from Western countries tend to spend more on food by visiting fast-food chains, such as McDonald’s, Burger King, Domino’s, Pizza Hut, KFC, Starbucks, and other local fast-food chains and coffee shops. The Western cuisine segment is expected to grow at the highest growth rate over the forecast period, owing to the rapid expansion of fast food chains in the country, offering burgers, pizza, and sandwiches. Apart from the fast-food chains operating in the country, full-service restaurants and fine-dining eateries are also being launched in the region to attract foreign tourists to local Middle Eastern cuisine. These factors are expected to boost Saudi Arabia's market size in the coming decade.

Country Level Analysis

Saudi Arabia’s food & beverage industry is one of the largest in the Middle East region. According to the Saudi Central Bank data, in 2023, Saudi Arabia's food service market saw significant growth, with the "Restaurants & Café" sector experiencing a 13.66% year-over-year sales increase. Demographic and social changes in the Kingdom of Saudi Arabia will mainly drive this growth.

Fast food consumption is steadily increasing in Saudi Arabia due to rising disposable incomes, an increasing percentage of working women, and the convenience provided by fast food businesses. Furthermore, the availability of affordable fast-food restaurants has increased the frequency of dining out, particularly among the working-class population. With the majority of the millennial population increasing their preference for fast food, their spending on quick-service restaurants is increasing. As Saudi Arabia’s tourism sector is growing at a notable pace, the country is moving toward becoming a global tourism hub backed by competitive advantages that attract international travelers looking for new experiences.

List of Key Companies in the Saudi Arabia Food Service Market

As the COVID-19 pandemic outbreak heavily hit the food service industry in 2020, market players were not ready to risk their businesses by entering into volatile markets and making losses. However, since the markets recovered from the pandemic, key players in the market have also started expanding their businesses, and the food service industry has also grown at a steady rate. For instance, in September 2024, Gong Cha, an international beverage franchise, expanded into Saudi Arabia. This move is part of Gong Cha's broader strategy to scale up and become a global brand, capitalizing on growing consumer demand for bubble tea in the Middle East.

LIST OF KEY COMPANIES PROFILED

• 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.)

KEY INDUSTRY DEVELOPMENTS

• July 2025: Saudi-based Tanmiah Food Company expanded its partnership with McDonald's Saudi Arabia to increase the supply of locally sourced, larger-sized poultry suitable for deboning and further processing. This strategic collaboration aims to boost food security by improving local content and self-sufficiency, and support Saudi Arabia's Vision 2030 goals for agricultural development through innovations in poultry farming, feed, and animal health.
• January 2024: Blessings Basket Company has signed a franchise agreement with the Rave Restaurant Group, through its subsidiary Pizza Inn, to expand its presence in Saudi Arabia.  Through this agreement, Pizza Inn will open 50 new restaurants in Saudi Arabia, starting with two stores in January 2024. Pizza Inn currently operates 110 restaurants in the U.S. and 19 in international markets. In the upcoming decade, Blessings Basket Company is planning to launch 50 more restaurants in the Kingdom of Saudi Arabia.  
• July 2023: Rebel Foods, an Indian cloud kitchen operator, entered the Saudi Arabian market by inaugurating its two cloud kitchens in Riyadh. The cloud kitchen company is planning to establish 60 virtual restaurants in Riyadh within one year and is also planning to expand to other cities, including Jeddah. Rebel Foods runs cloud kitchen brands such as Behrouz Biryani, Faasos, Oven Story Pizza, and more.

REPORT COVERAGE

The Saudi Arabia food service market analysis report provides a detailed view of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Besides this, the report also offers insights into the latest industry trends.

To gain extensive insights into the market, Download for Customization

Report Scope & Segmentation