What’s next? Saudi Arabia’s F&B scene in focus

What’s next? Saudi Arabia’s F&B scene in focus

As Saudi Arabia continues its dynamic journey toward Vision 2030, F&B stands at the forefront of transformation. From rapid innovation and emerging trends to significant investments and evolving consumer expectations, the kingdom’s food and beverage landscape is set for an exciting future. A recent panel discussion at HORECA Riyadh explored the future of Saudi Arabia’s F&B sector, addressing growth opportunities, operational challenges and the impact of technology. Discussions highlighted AI-driven innovations, strategies for financial resilience, and the importance of quality amid market expansion.

Moderated by Abdul Kader Saadi, founder of Glee Hospitality Solutions LLC, the session provided an in-depth exploration of the future of Saudi Arabia’s F&B industry. Panelists included: Ziad Kassabieh, CEO of Advanced Food Co.; Kamal Marghlani, VP revenue at Foodics KSA; Bassam Nassar, financial planning and investment director of Modern Food Company; and Naji Haddad, VP of EMEA at Deliverect.

Future of Saudi Arabia’s F&B industry

The panelists highlighted the sector’s promising growth trajectory, fueled by Saudi Vision 2030 initiatives, international events, and increased tourism. Nassar noted that while oversupply in the market presents challenges, it also lays a foundation for attracting diverse consumer groups in the future. Upcoming events like the Expo and Winter Games were identified as catalysts for growth. However, resilience during the interim period is essential for operators.

Saudi Arabia’s Key challenges and strategies

Challenges identified included the rising cost of operations, competitive pressures and maintaining consumer demand. Kassabieh emphasized the importance of conducting in-depth market research and building robust business models. He discussed the complexities of developing sustainable dark kitchens, stating that success requires more than just recipes and branding. He advocated for diversification, strong branding, and optimal location selection.

According to Nassar, financial planning and cost optimization are critical, especially during economic uncertainty. He cautioned against compromising on quality while optimizing costs, suggesting that operators focus on efficiency rather than cost-cutting.

Technology transformation

Marghlani explained how digital transformation is reshaping the F&B industry. He highlighted Foodics’ solutions, which streamline operations and enhance customer experience through AI and automation. The integration of technology helps operators manage costs, improve efficiency and provide data-driven insights for decision-making.

Similarly, Haddad described how Deliverect simplifies online order management, especially in a market with numerous delivery platforms. He stressed that seamless technology adoption requires simplicity for operators to integrate into their workflows. Haddad also noted regional differences in consumer behavior, with Middle Eastern customers favoring speed and personalization in delivery.

AI and customization

Panelists agreed that AI is pivotal in transforming the customer experience. Haddad discussed how AI enables menu customization and loyalty programs by analyzing customer preferences. These innovations not only improve customer satisfaction but also create opportunities for upselling.

Marghlani added that AI-powered tools are enabling real-time data analysis, which reduces decision-making time and enhances operational efficiency. For instance, automated processes like inventory management and predictive ordering help operators optimize resources and reduce waste.

Public-private partnerships and support

The role of public-private collaboration in fostering growth was discussed. While government support through trade licenses and visa facilitation is acknowledged, panelists emphasized the importance of industry bodies like Qoot in driving sectoral standards and promoting homegrown brands.

Strategies for competitive advantage

Kassabieh shared insights on maintaining a competitive edge, emphasizing the value of strong concepts and consistent quality. He highlighted the scalability of smaller, high-quality operations, supported by investments in central kitchens and logistics.

Nassar discussed the importance of understanding customer needs, particularly in fine dining. He stressed that survival in an oversaturated market depends on balancing cost efficiency with maintaining service and food quality.

Key takeaway

AI, data analytics and seamless integration of platforms were highlighted as transformative forces that will define the future of F&B.

For more features, click here

Add to Favorites

Your email address will not be published. Required fields are marked *