RIYADH: Saudi restaurant sales surged by 13.66 percent to SR89.3 billion ($23.8 billion) in 2023, up from SR78.6 billion in 2022.
According to the Saudi Central Bank’s monthly bulletin, the total sales made in cafes and restaurants in the last month of 2023 reached SR8 billion, compared to only SR7.3 billion in the same period in 2022.
The number of e-commerce transactions using Mada cards in December 2023 reached 81 million transactions amounting to SR13.6 billion, marking a 14.9 percent sales increase compared to the corresponding period in 2022.
However, the average transaction per operation witnessed a 10 percent decline, falling from SR38 in 2022 to SR35 in 2023, the data from the central bank, also known as SAMA, showed.
The noticeable decline in the profits of the restaurant sector is attributed to several factors, including increased competition, oversupply in certain areas, and evolving consumer preferences for diversity, as reported by AlEkhbariya.
Additional factors contributing to the decline include challenges in customer satisfaction and the increasing impact of non-food quality aspects on restaurant visits. This encompasses factors like the restaurant’s marketing proficiency and content creation across various platforms.
Data released by the institution revealed that cafes and restaurants visited by Saudis played a role in a 13.35 percent annual spending increase across the Kingdom in November 2023.
Commercial rental prices, particularly in major cities, have seen a notable surge, coupled with a sharp uptick in operational expenses for restaurants. Moreover, restaurants are increasingly dependent on delivery apps, which can deduct up to 30 percent of the meal’s value.
The restaurant and cafe sector is integral to the “Quality of Life” program and Vision 2030 goals, serving as a key element in shaping the program. The 2018 document outlines an objective to double the current figures, aiming for 3,000 restaurants and over a thousand cafes per million people by 2030.
The restaurant market in Saudi Arabia currently surpasses SR95 billion and is projected to expand further to over SR150 billion. In 2023, the combined market size of restaurants, cafes, and food reached SR95 billion, with expectations to surpass SR166 billion by 2030.
