Saudi restaurant sales surge over 13% to $24bn in 2023: SAMA report
In 2023, Saudi restaurant sales climbed to $23.8 billion, a 13.6% increase over the previous year, according to a report from the Saudi Central Bank (SAMA).
December alone saw sales in this sector hit $2.13 billion, up from $1.95 billion year-on-year. Despite this growth, the sector faces challenges such as heightened competition, consumer demand for diversity, and a focus on service quality over just food.
E-commerce also grew, with Mada card transactions in the sector reaching 81 million in December, worth over $3.6 billion, a near 15% increase from 2022. However, average spending per transaction dropped slightly from $10.13 to $9.33.
The popularity of cafes and restaurants contributed to a 13.35% increase in overall spending by Saudis in November 2023. Rising operational costs and commercial rents, especially in larger cities, and the heavy reliance on delivery apps, which can take up to a 30% cut of sales, are notable trends.
The sector is vital to Saudi Arabia's "Quality of Life" initiative and Vision 2030 goals, aiming to dramatically increase the number of dining establishments to support cultural development.
Despite current challenges, the market value for restaurants, cafes, and food in Saudi Arabia, currently totaling over $25 billion, is expected to exceed $44 billion by 2030.
E-commerce also grew, with Mada card transactions in the sector reaching 81 million in December, worth over $3.6 billion, a near 15% increase from 2022. However, average spending per transaction dropped slightly from $10.13 to $9.33.
The popularity of cafes and restaurants contributed to a 13.35% increase in overall spending by Saudis in November 2023. Rising operational costs and commercial rents, especially in larger cities, and the heavy reliance on delivery apps, which can take up to a 30% cut of sales, are notable trends.
The sector is vital to Saudi Arabia's "Quality of Life" initiative and Vision 2030 goals, aiming to dramatically increase the number of dining establishments to support cultural development.
Despite current challenges, the market value for restaurants, cafes, and food in Saudi Arabia, currently totaling over $25 billion, is expected to exceed $44 billion by 2030.
