Qatar Retail Restaurant Industry Outlook to 2025

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Industry Overview

60% young population, 85% ex-pat population (led by Asian countries), and 2.1Mn tourist arrivals in 2019 positions Qatar as a vibrant country among its GCC peers. Hence, Demographics skewed towards the young urban population; prefer the convenience of dining out against cooking at home frequently.

The Restaurant sector in Qatar which was earlier dominated by franchised American concepts is witnessing the development of several home-grown concepts driven by companies such as Food Service Company and more. The sector has flourished due to the presence of a variety of outlets in the country that serve cuisines from all across the world to all customer segments. Qatar Retail Restaurant Industry has decreased at a CAGR of 0.4% on the basis of revenue and a CAGR of 1.9% on the basis of the number of retail outlets over the period 2014-2020. The negative CAGR represents the impact of COVID-19 on the industry in 2020 but the market is expected to revive in the coming 1-2 years owing to FIFA World cup 2022. Major growth drivers of the Industry are largely young and urban population, rising disposable income of people, heavy tourist traffic, Construction of Malls, Purpose Built Entertainment Facilities and ongoing sporting events in the country.

Qatar Retail Restaurant Industry Segmentation

By Type of Outlet: Cafeterias accounted for the largest number of Restaurants with Casual Dining Outlets generated the largest revenue share. Fine Dining Restaurants earns Highest Profit Margin serving Clients with Authentic Cuisine, ambiance & Food Quality.  Casual Dining Outlets are the most preferred place for family outings serving Multi-cuisine Food & Decent Atmosphere. QSRs and Cafeterias are being extremely popular due to the presence of international Brand Franchise & New Home Grown Brands in Qatar.

By Geographical Location: The restaurants in Qatar are majorly concentrated in parts of Al Rayyan, Doha, Al Gharafa, Dafna, West Bay, Pearl Qatar, and more. Most Number of the outlets that are concentrated in Al Gharafa and Dafna/ West bay, Pearl Qatar earns higher revenue than other areas. Some of the Popular Outlets are Diet House, Coffee Time, Pool Grill, and Hwang & More.

By Franchise & Non-Franchise: The majority of Revenues in Qatar held by the Retail restaurant Industry are from Non-Franchised Outlets/ Standalone Outlets in Qatar. Cafes & Cafeterias account for the largest share in Franchised Outlets & Casual Dining in Non- Franchised Outlets basis Count in 2020.

Competition Overview

The Retail Restaurant Industry is quite fragmented and No First-mover Advantage is evident in any type of Outlets in Restaurant Industry in Qatar. In this space, More than 2,000 Restaurants are competing basis multi-cuisines, end-user dedicated services, great ambiance & quality food, and more. The worth of Mouth has played an important role in expanding many outlets in Qatar such as The Cheesecake Factory, Asha’s, Volume Cafe. Moreover, Franchised American Brands such as Fat Burger, Starbucks are extremely popular and many Qatari Groups such as Food Service Company are developing new In-house Restaurant Chains/ Brands.

Future Growth

The Retail Restaurant Industry is expected to flourish in Qatar with rising income levels and per capita expenditure levels of consumers. It is expected to witness a CAGR of 6.9% in terms of revenue during the forecast period 2020-2025F. The government as well as supporting the industry under Qatar National Vision 2030 to encourage local companies to expand into regional and international markets. Moreover, the FWC event in 2022 will allow ample opportunity for incumbents to increase the utilization rate of existing restaurants and develop more Cafes, Casual/Fine Dining, and QSRs near the newly opened stadiums and Malls especially designed for the FIFA World Cup in Qatar.

Key Topics Covered in the Report

• Socio-Demographic Outlook of Qatar
• Snapshot on Food & Beverage Industry
• Retail Restaurant Services Industry in Qatar (Market Size and Segmentation)
• Competitive Landscape of Firms (Operational Performance, Financial Performance, Company Profiles)
• Challenges and risk to the Retail Restaurants
• Operating Model of Casual Dining Outlet in Qatar
• Regulations and Certifications applicable to industry