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Riyadh's food and beverage scene boosted by 288000 sqm of new developments – SME10X

10x Industry
Riyadh’s food and beverage scene is thriving with 288,000 sqm of restaurant-led lifestyle retail developments, which include 273 new restaurants, spread across 16 lifestyle retail developments, coming to market soon, according to new research by real estate consultant, Knight Frank. The company’s analysis reveals that the growing F&B scene is being transformed by home-grown local restaurants and cafes.
According to Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, the Saudi Arabian government’s vision to transform Riyadh into a new cosmopolitan business hub for the region is bringing into focus the city’s public realm and lifestyle amenities. These key ingredients that define a city’s habitability are slowly starting to fall into place in Riyadh.
He added, “International restaurant brands are yet to arrive in a meaningful way, which is a double-edged sword. 68 percent of the city’s new restaurants and cafes are Saudi brands, 21 percent of which specialise in international cuisine. American food outlets account for 16 percent of F&B outlets, while Lebanese restaurants are the third most prevalent at 13 percent. Once news of the soaring demand for high quality restaurants catches the attention of global brands, consumers will benefit from additional options, but international F&B outlets will undoubtedly rival the local outlets in terms of cost, reputation and experience.”
The café scene too is bustling with 40 percent of new outlets falling into this category, with UWalk becoming the nerve centre of Riyadh’s café culture, with 53 percent of outlets dedicated to coffee shops.”
“Some lifestyle retail developments launched in 2016 or 2017 are already being usurped by newer, more modern lifestyle retail destinations, creating challenges for restauranteurs and landlords alike as vacancy rates in older developments creep up and footfall declines,” Durrani said.
International brands must adapt their proposition across the full spectrum to suit demand, both in terms of operational aspects, as well as the actual menu offering itself. It’s clear that demand for lifestyle retail in KSA is thriving and the key to their overseas’ brands success will be in finding the correct formula of both maintaining their international brand identity but adapting it to meet local customer requirements.
by Mita Srinivasan
by Mita Srinivasan
by Mita Srinivasan
by Mita Srinivasan
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