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_Dine-in or takeaway? Understanding attitudes towards eating out

The food service sector in Saudi Arabia is the largest in the Middle East and is currently valued at around SAR 48.75 billion ($13 billion), according to Fortune Business Insights.
Faisal Durrani March 16, 2023

Booming restaurant scene

Vision 2030 and the economic transformation that is now unfolding across the Kingdom have attracted a slew of international restaurant franchises to the country; however, our research has shown that the vast majority of restaurant brands still remain local. Indeed, in Riyadh, 68% of restaurants at the city’s lifestyle retail outlets are homegrown brands.

Nonetheless, as the volume of expats moving to the Kingdom rises, we are seeing the arrival of leading international restaurant chains, such as London’s EL&N, New York’s Black Tap and Rome’s Il Vero Alfredo.

Like elsewhere in the world, the popularity of food delivery apps is also growing exponentially. The food app delivery market was valued at US$ 511 million in 2021, and is expected to grow at an annual rate of 10% until 2026 (Monsha’at).

For developers of residential communities, mall operators and developers, the changing attitudes towards eating out will likely have a significant knock-on impact on development plans. This is primarily driven by young Saudi migrants who are now living on their own away from their hometowns and searching for convenient amenities, including onsite or easy-to-access dining options.

Survey 2 corroborates this behaviour; 51% of respondents prefer ‘going out to eat’, while 27% prefer ‘ordering in’, with about a fifth (22%) showing a higher preference for ‘cooking at home’.

Clash of the generations

Unpicking the results of Survey 2 further reveals significant differences in generational attitudes towards eating out.

Older respondents (those over 45) are more likely to cook at home (43%) compared to just 20% of those under 25. When it comes to ordering a takeaway, 41% of under-25s are keen on ordering in, while among those over 45 years, the figure stands at 14%.

Unsurprisingly, income also plays a significant role in dining choices. 64% of those earning over SAR 40,000 a month choose to dine out, with about a third (36%) of those earning less than SAR 10,000 a month opting to cook a home meal instead.

Similarly, the percentage of households opting for a home-cooked meal declines as income rises, falling from 36% for those earning less than SAR 10,000 per month to just 7% for those on salaries over SAR 40,000 per month.

Khaleeji, all the way

When it comes to cuisine preferences, older respondents (45+ years) prefer regional cuisine above all else, with Arabic food being named as the favourite, followed by Lebanese (61%) and Turkish (49%).

Asian cuisine, Japanese in particular, is more popular with younger respondents, with the popularity declining as age rises: 20% for respondents under 25, as opposed to 10% for respondents over 45.

Interestingly, in the capital’s lifestyle-led retail developments, Japanese restaurants account for just 5% of restaurants, with restaurants with international menus (24%) dominating the restaurant scene.