How to Start a Restaurant Business in KSA

Introduction

Saudi Arabia is rapidly evolving into a dynamic hub for hospitality and dining experiences. As the country pushes forward with its Vision 2030 transformation agenda, the food and beverage (F&B) sector is playing a pivotal role in driving consumer growth, tourism, and lifestyle diversification. With a young, tech-savvy population, increased disposable income, and a growing appetite for global cuisines, starting a restaurant business in KSA is a promising opportunity for both local and international entrepreneurs.

From fine dining restaurants in Riyadh to family-style casual dining in Jeddah or Makkah, there is strong demand for diverse culinary formats. The government’s support for SMEs, improved regulatory infrastructure, and favorable economic reforms make this the right time to launch a restaurant in the Kingdom.

However, setting up a restaurant in Saudi Arabia requires more than just culinary expertise — it demands a solid business structure, compliance with Saudi regulations, financial forecasting, and operational planning. That’s where Aviaan provides end-to-end professional support.

Market Potential and Opportunities in Saudi Arabia

Booming F&B Sector

The Saudi restaurant market is valued at over SAR 80 billion and is expected to grow steadily, driven by urbanization, changing lifestyles, and international tourism. The government’s push to make Saudi Arabia a global tourism hub by 2030 is further opening new opportunities in the hospitality sector.

Rising Demand for Dining Out

With over 70% of the population under the age of 35, Saudi Arabia has one of the youngest populations in the Middle East. This demographic is increasingly seeking new dining experiences, international cuisines, and casual-to-premium restaurant formats. The growth of food delivery platforms and dining apps also makes it easier for new restaurants to tap into tech-enabled demand.

Strategic Cities for Launch

Cities like Riyadh, Jeddah, Dammam, Al Khobar, and Makkah offer high foot traffic and commercial visibility. Each of these cities has its own consumer behavior patterns, dietary preferences, and real estate pricing, which should be considered in your feasibility planning.

Legal and Licensing Requirements

Commercial Registration (CR) and Municipality License

To operate a restaurant in KSA, you must obtain a Commercial Registration (CR) from the Ministry of Commerce and a municipal license from the relevant local authority. These licenses define your business activity, location, and operational scope.

ZATCA Registration

All restaurants exceeding the revenue threshold must register with ZATCA (Zakat, Tax and Customs Authority) and comply with VAT regulations. POS systems must be linked to ZATCA-compliant invoicing.

Food Safety and Health Permits

Restaurants must comply with the Saudi Food and Drug Authority (SFDA) requirements, including:

Hygiene certifications
Food handler health cards
Waste management compliance
Kitchen layout approvals

Saudization Requirements

Employers must comply with Saudization (Nitaqat) policies and maintain a ratio of Saudi nationals in the workforce as defined by the Ministry of Human Resources.

How Aviaan Can Help Launch Your Restaurant in KSA

Company Formation & Licensing

Aviaan simplifies your restaurant launch by handling all steps in the legal setup. We help you:

Register your restaurant with the Ministry of Commerce
Obtain your Commercial Registration (CR) and municipal license
Assist with SFDA and Civil Defense approvals
Ensure your POS system is registered with ZATCA for VAT compliance

We guide you through choosing the optimal business structure (sole establishment, LLC, or foreign-owned entity) and secure all necessary government clearances.

Feasibility Study & Concept Planning

Aviaan conducts a detailed feasibility study tailored to your restaurant concept. We analyze:

Footfall trends by city and location
Competitor benchmarking and price points
Menu design and pricing strategy
Break-even analysis and operational costs
Local sourcing and supply chain feasibility

Whether you plan to open a café, fine dining venue, or QSR chain, we help validate your concept based on real market data.

Business Plan Development

A robust business plan is critical for both execution and funding. Aviaan prepares custom business plans including:

Operational workflows and staffing models
Location evaluation and rental analysis
Kitchen layout and CAPEX planning
Revenue projections and cash flow forecasts
Marketing and loyalty programs

This plan can be used for investor presentations, bank loans, or internal execution.

Accounting, Payroll & ZATCA Compliance

Restaurant businesses face daily cash transactions, variable costs, and supplier cycles. Aviaan offers accounting support with:

Daily sales recording and reconciliation
Supplier invoice tracking and payment planning
Payroll processing with GOSI deductions
VAT filings and ZATCA compliance

We help automate your restaurant’s financial systems using cloud accounting software and integrate POS with your ledgers.

Fundraising Support

Planning to raise capital to open multiple branches or franchise your brand? Aviaan provides:

Investor pitch deck creation
Unit economics modeling by outlet
ROI and exit strategy planning
Support in approaching regional investors and banks

Our team prepares all financial documentation and guides you through the funding lifecycle.

Branding & Go-to-Market Strategy

We help you develop a market-ready restaurant brand. From logo design and brand story to pricing strategy and launch campaigns, Aviaan helps position your business competitively. We also guide you in:

Website and mobile ordering integration
Food aggregator partnerships
Loyalty programs and CRM setup

Post-launch Compliance & Expansion Support

Once operational, Aviaan continues to support your restaurant with:

Annual license renewals
Tax filings and financial audits
Employee visa processing and HR documentation
Branch expansion planning to other Saudi cities

We ensure that your restaurant remains compliant, scalable, and financially optimized for long-term success.

Conclusion

The Saudi restaurant industry is on the rise, supported by a youthful population, high consumer spending, and government-backed economic reform. Whether you want to open a trendy café, a family-friendly outlet, or a gourmet dining brand, Saudi Arabia provides the ideal launchpad.

By partnering with Aviaan, you get more than just business advisory. You get a strategic launch partner who manages every aspect — from licensing and accounting to branding and fundraising. With our local expertise and end-to-end services, your restaurant in Saudi Arabia will be set up not just to survive, but to grow and lead.