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Middle East Restaurant Project Report 2019-2020

Source:

The restaurant industry is one of the fastest growing sector in the Middle East and has grown exponentially over the last few years, with currently valued at US$ 13.2 billion in the UAE alone, and expected to grow at a CAGR (compound annual growth rate) of around 8% to reach US$ 29.3 billion by 2020.

This is due to a growing middle-class populace and young demographics who love to see new visually attractive restaurants, on-trend technology being used. Take away and home delivery also started to grow in the region, partly driven by online ordering platforms. There is also the region witnessing phenomenon in the QSR (Quick Service Restaurant) segment, concepts such as mobile food trucks and pop up kiosks especially in the UAE where operators are capitalizing on the country’s international flavour and spreading home-grown dining options.

In Saudi Arabia, restaurant industry growth is expected to accelerate as social behaviour shifts, we’ll see a rise in chains who integrate technology into their brands. Baskin-Robbins, for example – the fourth largest QSR brand in the region announced it would be expanding delivery offerings, for instance. This creates opportunities for operators who take note of trends early, integrating change and creativity in their operations before it comes commonplace.

Franchising will become more prevalent as international brands continue to grow in the KSA. Many foreign investors prefer to enter the market with the help of local player (someone well-experienced in the local behaviours and customs of the country) and Saudi government has taken steps to encourage that growth, through incentives to franchisees and franchisers.

Middle East countries have also adopted a wealth of foodservice concepts from around the globe, with local foodservice market continue echoing the trends seen at international level at a much faster pace, ranging from fast food franchises to celebrity chef-endorsed restaurants. This is led by local operators who partnered with international brands to boost’s the destination’s local dining credentials. Further, food-service sector is expected an uptake on the back of increased consumer spending in the next few years, which is expected to grow at over 25% to reach around US$ 136.1 billion by 2020.

Arabian Business, Timeout Dubai, Middle East Caterer, Euromonitor International, The National, arabianindustry.com, Hospitality News Middle East, Hospitality Services SARL, Fast Casual

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