The hospitality industry operates in cycles, with distinct high and low seasons influenced by geography and climate. Interestingly, these peaks and troughs don’t align globally, creating opportunities for businesses to thrive year-round. For instance, northern Europe’s high season, from June to September, coincides with the low season in the Gulf due to extreme summer heat.
Yet, the Saudi hospitality market displayed unexpected dynamics this past summer. While traditionally a quiet period, Riyadh witnessed both promising developments and notable challenges.
High Dining Challenges
The high-end dining sector, in particular, expanded rapidly. International chains raced to establish a presence, banking on Saudi Arabia’s growing appetite for luxury experiences. However, this rush often overlooked critical ROI evaluations. For example, certain upscale restaurants opened in areas with low footfall or set prices too high for local demand. A well-known French fine dining chain reportedly closed its Riyadh location within a year, unable to sustain operational costs against slow revenue growth.
Mid-Range Restaurants on the Rise
Conversely, mid-range restaurants have thrived, especially in Riyadh. Brands offering affordable yet quality dining options found a sweet spot, appealing to a broader audience and achieving consistent customer loyalty. These establishments now dominate hospitality recruitment, offering positions that blend competitive pay with career growth opportunities. One example is a growing local chain specializing in fusion cuisine, which hired over 300 staff members this year alone, ranging from entry-level servers to skilled chefs.
Salaries in the Sector
Saudi salaries in mid-range restaurants often exceed expectations, particularly compared to wages in some other countries. Entry-level employees typically earn around 3,000 SAR per month, a figure 3 to 4 times higher than what workers with similar roles receive in India or the Philippines. For specialized talent, such as executive chefs or experienced managers, salaries can reach up to 35,000 SAR, reflecting the high demand for skilled professionals in the kingdom.
As Saudi Arabia continues its transformation under Vision 2030, the hospitality sector offers an intriguing mix of opportunities and lessons, underscoring the need for both strategic planning and adaptability in a competitive market.