International cuisine was one of the cuisine types within coffee & tea shop channels, along with American and Turkish cuisines, according to GlobalData’s menu intelligence database. In its menu analysis of coffee & tea shop in Saudi Arabia report, GlobalData analyses 27,670 menu items across coffee & tea shop outlets and provides an overview of various foodservice channels in Saudi Arabia. According to GlobalData, coffee & tea shop makes up 4% of all restaurant types in Saudi Arabia. Buy the report here.
Hot Drinks was found to be the most-used ingredient in coffee & tea shop establishments, featuring in 18% of menu items, followed by fruit and confectionery. Milk and nuts & seeds were also significant ingredients. An analysis of menu categories reveals that soft drinks, baked goods & morning goods, hot drinks, pudding & desserts and meal deals and combinations were most popular within the coffee & tea shop format.
An analysis of the annual price change between 2023 and H1 2024 indicates that the average menu prices in Saudi Arabia coffee & tea shop channel have flat growth. Considering all channels (including coffee & tea shop) the average price change was 0%. As on-premises dining gains momentum following the COVID-19 pandemic, the coffee & tea shop segment in Saudi Arabia is expected to experience overall growth. Moreover, the introduction of new menu items that emphasize health and wellness generates interest in those seeking nutritious menu options and greater variety.
Different restaurant types exhibited mixed price movements within Saudi Arabia foodservice market between 2023 and H1 2024. Of all the restaurant types, venue exhibited highest price hike, while supermarket & hypermarket experienced a price decrease.
An in-depth analysis of coffee & tea shop price trends by location reveals consumption trends of each region. The graph below represents the change in coffee & tea shop menu prices between 2023 and H1 2024 across the top five locations. As seen below, coffee & tea shop menu items in Hafar Al Batin became more affordable as compared to Riyadh and Jeddah.
While consumers become more price conscious, operators look for ways to optimize their costs to retain margin and market share. In the Saudi market, coffee & tea shop operators rely on innovation as a crucial tactic to appeal to customers as well as optimize costs. As increasing number of consumers seek novel experiences, foodservice operators must continuously innovate their menu choices, providing superior taste and quality along with a diverse selection of dishes. Operators should highlight the distinctive tastes and flavors of their food and beverage offerings in a convenient format to enhance customer engagement.
To further understand and explore GlobalData’s insight into Saudi Arabia coffee & tea shop menu, buy the full report here.
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