The talk “What’s new? Uncovering hot trends and the latest F&B concepts in KSA” was held during the 11th edition of Saudi HORECA Riyadh, the kingdom’s largest hospitality and foodservice trade event. Experts in the field were invited to participate in a panel discussion that delved into subjects ranging from the secrets behind a successful restaurant business to managing franchises.

Organized by Semark Group, Hospitality News Middle East and Hodema consulting services Middle East and Africa, the panel included: Badr Fayez, CEO and executive chef at Al-Badr A-Fayez Catering Services; Francois Khalaf, COO at Grey Fox Limited; Abdallah Al Mounajjem, founder and business development manager at Woosh; and Suhail Jabir, GM at Foodics. Nagi Morkos, founder and managing partner at Hodema Consulting Services of Middle East and Africa, moderated the session. He opened the discussion by saying: “There are tremendous opportunities in the F&B industry in KSA. Know-how, quality and experience remain essential pillars for success.”

What’s trending?

The panel kicked off with an interesting discussion about existing trends in the restaurant scene and opportunities. Fayez noted that given the changes that have been taking place in terms of KSA’s tourism openness, consumers has been prioritizing “value, health and experiences.” Khalaf added that the trend nowadays has gravitated toward entertainment, which can take on different forms. In Al Mounajjem’s opinion, artisan bakeries are trending, evidenced by the number of new openings in the kingdom. Jabir emphasized that “everything is trending,” as long as food quality and experience are prioritized.

Market saturation

When asked about market saturation, Khalaf said that with a massive population of almost 36 million, KSA’s restaurant sector is not saturated, especially with 14 to 40-year-olds accounting for 60 percent of the population. He noted, though, that whereas it is easy to open a restaurant, maintaining it is more difficult. He asserted that the key to success lies is consistency: “doing everything the same way every day.”

Fayez suggested that the market lacks development. As a chef himself, he emphasized that: “the industry still lacks Saudi chefs.” He acknowledged that there are many successful Saudi chefs, but the numbers are not sufficient.

Al Mounajjem agreed with Fayez that more Saudi chefs are needed to elevate the standard of the industry and introduce new dishes to restaurant menus. In summary, Jabir suggested that “localization” is missing — and by this he referred to “importing a meal” and using names familiar to Saudis.

The rise of local

While acknowledging a growing interest in local dishes, most of the panelists agreed that there is a lack of variety when it comes to Saudi cuisine. Al Mounajjem said that there are clear signs of Saudi food being standardized, especially with the influx of new Saudi chefs. However, Jabir disagreed with the other panelists by saying that some local brands, such as Buffiya and Oumaymati, are pushing the boundaries and making local food more accessible to different markets.

Success factors

Advances in technology have led to F&B concepts around the world being redefined. For Jabir, the key success factors are the chef and the quality of food. Of course, success goes hand in hand with heavy reliance on technology, as incorporate technology in most F&B activities is fundamental. Jabir said: “It is important to monitor your time to serve the end-user.” Indeed, he noted that Foodics implemented self-service kiosks that eliminate the need for cashiers.

In Fayez’s opinion, location is still an important factor in the success formula. Needless to say, a convenient location combined with an exceptional entertainment recipe is the name of the game.

Riyadh is where most of the action happens on the F&B front. However, according to Khalaf, other cities are also growing, such as Jeddah, Neom city, Dammam and Khobar. Al Mounajjem also suggested that KSA’s Eastern Province tends to be more innovative because of its proximity to Kuwait and Dubai. Jabir said: “We serve around 22,000 brands. We have almost 85,000 devices deployed in the market. We see a healthy breakdown between all the regions, to be frank.” The difference is in the type of food served in smaller cities.

Franchising

The panel spoke about the advantages of franchising, stating that it could be a rewarding endeavor if the relationship between the franchisee and franchisor is nurtured. According to Al Mounajjem, the secret to a franchise’s success lies in the franchisee’s willingness to learn more about the customer before embarking on such a journey. Khalaf concurred and highlighted the benefits of the franchise experience.

Investments

In terms of investments, the panelists agreed that it is actually worth investing in anything that is different. Khalaf advised people who are interested to invest to select at least two sectors. In a post-Covid era, he asserted that people’s interests are piqued more by seating areas, as they crave to be in communal places: “I believe Covid helped change the way we are dealing with the business.”

Fayez, on the other hand, noted that it is possible to view restaurants through their use of cloud kitchens, pop-ups and participation in food festivals. In his opinion, it is essential to be “responsible for creating food that is safe, tasty, enjoyable and good value.”

The talk ended with the panelists sharing their favorite concepts in KSA’s restaurant scene, which ranged from Mexican food to bakeries. All agreed with Fayez that authenticity is paramount. The panelists added that diversity in food matters. While some viewed location as the key to success, most agreed that it is essential to weave entertainment into the recipe. Of course, technology and respect for local customs and traditions remain essential building blocks for any successful F&B business.