SAUDI ARABIA- Restaurant and food service consultancy firm Mingora Consult has revealed that Saudi Arabian QSR brands outnumber American chains 15 to 13. 

The data was revealed as part of the firm’s latest Food Panel dataset, which provides panel-based market data on the QSR market. 

Local chains dominate the country’s SAR 66.6 billion (US$17.7 billion) fast food market. Local chains also outnumber American chains in the top 30. 

This is a significant shift from two decades ago, where only 5 or 6 local chains appeared in the top 30. The consultancy firm also predicts the pattern is set to continue into the future. 

Mingora Consult attributed this decline in American chains to inflation, which has significantly increased cost pressures and stifled demand. They also rank lower in customer satisfaction, when compared to local chains on category averages on value, food, service and atmosphere. 

Some American QSR giants like McDonald’s are facing customer boycotts stemming from the Gaza siege. 

However, the dataset suggests that American QSR chains still have a strong presence in the Saudi market, albeit based on their capitalization strength and revenue.  

The 13 American brands in the top 30 list posted a combined annual revenue of SAR 6 billion (US$1.7 billion) in the last financial year, which is 10% higher than the Saudi members of the list. 

The biggest QSR chain in Saudi Arabia, McDonald’s is 30% larger than the second largest chain in terms of stores and revenues. It also has the fastest development rate of all QSR chains in the country. 

Wendy’s, another major QSR chain, recently reentered the country’s fast food market to a high degree of acceptance among customers. 

According to the consultancy firm, there is an increased affinity towards local brands among customers. The ‘American’ moniker/tag does not necessarily guarantee brand success.  

Burger chains like Burger King are facing competition from Sultan Delight Burger, Burgerizzr or Heffy. Pizza chains like Pizza Hut are facing competition from players like Maestro, while chicken chains like Popeyes are facing competition from players like Albaik and Al Tazaj.  

The dataset predicts further competition proliferation. 

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