How to Start a Restaurant Business in KSA

Introduction

Saudi Arabia is undergoing a cultural and economic transformation. With Vision 2030 at its core, the Kingdom is shifting from oil dependency to a diversified economy, welcoming innovation, tourism, and modern lifestyle businesses—including restaurants. From fine dining to quick service, the Saudi F&B sector is booming with local and international brands racing to cater to a growing, urban, and youthful population.

How to Start a Restaurant Business in KSA

As social dynamics change and consumer spending in food and hospitality increases, the restaurant industry in KSA offers entrepreneurs, chefs, and investors an exciting opportunity to build strong, scalable businesses. However, launching a restaurant in Saudi Arabia involves more than just a good concept. It requires legal clarity, financial planning, and a strong local strategy. This is where Aviaan plays a critical role—not just as a service provider, but as a strategic partner in your business journey.

Market Demand and Opportunity in KSA

The restaurant and foodservice industry in Saudi Arabia is projected to exceed $30 billion by 2030, driven by a young population, rising disposable income, and growing tourism. Major cities like Riyadh, Jeddah, Dammam, and Khobar are now food and lifestyle destinations.

Trends fueling this demand include:

Increased acceptance of casual dining and international cuisines
The rise of health-conscious and premium offerings
Food delivery and digital ordering apps
Entertainment zones and tourist hubs opening up to new restaurant formats
A social shift toward out-of-home dining experiences

This creates a favorable landscape for launching restaurants of all formats—fine dining, fast food, food trucks, cafés, cloud kitchens, and themed outlets.

However, success in the Saudi market depends on localization, compliance with licensing norms, and a well-structured business plan. This is where Aviaan’s role becomes essential.

Legal and Licensing Requirements

To open a restaurant in Saudi Arabia, entrepreneurs must follow a structured licensing procedure involving multiple entities. Aviaan streamlines and manages this entire process for you.

The basic requirements include:

Commercial registration (CR) from the Ministry of Commerce
Municipality license from the local Baladiyah (municipal authority)
ZATCA (formerly GAZT) registration for VAT compliance
Food Safety license from the Saudi Food & Drug Authority (SFDA)
Civil Defense clearance for fire and safety norms
If you employ expats: registration with the Ministry of Human Resources (HRSD)
Payment gateway integration and cash register compliance

KSA’s legal structure also requires clarity around foreign ownership. In many cases, foreign investors must partner with a Saudi sponsor or establish a wholly owned entity via SAGIA/MISA (Ministry of Investment) under specified investment regulations. Aviaan handles all such complexities on your behalf.

Setup Requirements

To establish a successful restaurant in Saudi Arabia, you need a clear plan for location, staff, interior design, operations, and food compliance.

Location and zoning – Aviaan helps you select and lease property zoned for F&B businesses, ensuring compliance with municipality rules
Kitchen and layout – Approval must be taken for kitchen layout, ventilation, fire systems, and waste management before fit-out begins
Menu and sourcing – Menus must comply with halal guidelines, food labeling norms, and digital menu display laws (including calorie counts)
POS and technology – Your outlet must be equipped with GAZT/ZATCA-compliant POS systems integrated with VAT and e-invoicing standards
Staffing – Saudization quotas apply, meaning a portion of your staff must be Saudi nationals. Visa services and hiring guidelines must be followed carefully

All of the above steps are critical for smooth operations and government compliance. Aviaan ensures each stage is addressed professionally and efficiently.

How Aviaan Can Help Launch Your Restaurant in Saudi Arabia

Company Formation and Licensing

Aviaan helps you establish the most suitable business structure, whether you are a local entrepreneur, a GCC investor, or an international brand looking to enter Saudi Arabia.

We assist with:

Obtaining commercial registration with the Ministry of Commerce
Guiding through SAGIA/MISA processes for foreign investment licenses
Coordinating municipality permits, zoning approvals, and F&B classification
Handling ZATCA registration and VAT setup
Securing SFDA and Civil Defense approvals for food safety and building code compliance
Registering your POS system in line with Saudi e-invoicing mandates
Preparing all documentation required for regulatory inspections and audits

We ensure that your restaurant is not only legally established but is also positioned to operate smoothly from day one.

Feasibility Study and Financial Planning

Aviaan provides a full feasibility study to assess the viability of your restaurant model in the Saudi market. This includes:

Demographic and location-based research
Analysis of local competition and pricing strategies
Estimation of initial investment, rent, and running costs
Cost of compliance and staff planning
ROI projections and profitability timeline
Evaluation of menu margins, delivery models, and dine-in strategies

This study is critical not just for strategic planning, but also for lease negotiations, investment rounds, and licensing support.

Business Plan Development

Whether you are starting from scratch or expanding your brand into KSA, you need a professional business plan tailored to the Saudi market. Aviaan creates customized business plans that include:

Executive summary and concept clarity
Target market segmentation
Operational model and supplier strategies
Revenue model including dine-in, takeaway, and delivery split
HR planning and Saudization strategy
Financial projections and funding roadmap
Risk management and scalability path

Our business plans are also investor-ready and bankable, helping you raise capital, apply for loans, or pitch to franchise investors.

Accounting and Tax Advisory

Restaurant businesses in KSA are subject to specific tax rules, ZATCA guidelines, and e-invoicing regulations. Aviaan’s accounting team sets up your financial operations in full compliance with local standards.

We assist with:

Monthly bookkeeping and reconciliations
Restaurant inventory and wastage tracking
Taxable income classification and VAT returns
Payroll processing and GOSI (social insurance) contributions
E-invoicing compliance and POS integration
Financial dashboard reporting for decision-making

Our team ensures that you’re audit-ready and tax-compliant at all times.

Fundraising and Investor Support

Aviaan helps you prepare for growth by supporting:

Pitch deck design for local and international investors
Financial modeling including CAPEX, OPEX, and profit margins
Franchise expansion strategy for established concepts
Connecting with Saudi-based angel investors and F&B-focused venture capital firms
Legal guidance during shareholder agreements and investment rounds

We bridge the gap between your concept and the capital you need to scale.

Post-launch Support

Once your restaurant is operational, Aviaan continues to offer strategic and compliance support. This includes:

Support with license renewals and regulatory updates
Staffing solutions and HR compliance
Procurement advisory for suppliers and contracts
Support for loyalty program and customer engagement system setup
Expansion planning for second outlets or cloud kitchens
Financial audits and performance improvement analysis

We work as your long-term partner, enabling you to stay focused on operations while we handle the complexities behind the scenes.

Conclusion

The Saudi restaurant industry is one of the fastest-growing F&B markets in the region. With social, economic, and regulatory landscapes evolving, this is a prime moment to enter the market with a strong brand and sustainable business plan.

However, entering the Saudi market requires precision—from licensing to financial setup and regulatory compliance. With Aviaan by your side, you gain not only an experienced business setup firm, but also a strategic partner who understands the KSA market inside-out.

Let Aviaan guide you in building a restaurant brand that thrives in the Kingdom—from idea to operations, and from licensing to long-term success.