If you thought that the alarming increase in obesity in Saudi Arabia would result in a reduction of the consumption of fast food, then you were mistaken. According to a report by market research firm Euromonitor, Saudi Arabia's fast food market is expected to be worth more than $4.5 billion (about SR17 billion) in the next three years. Despite alarming statistics quoted in leading publications stating that about 66 percent of Saudi women are overweight and approximately 52 percent of the adult population is obese and over 15 percent of pre-school children are victims of obesity, the Euromonitor report said that restaurant chains providing hamburgers and popular desserts will see the biggest surge in sales, accounting for nearly 20 percent of food service transactions in the Kingdom by 2015. “Fast food outlets have become important social spaces for a growing cohort of Saudi young people,” said Michael Schaefer, head of consumer foodservice research at Euromonitor. “Future expansion will be driven by those operators which offer a combination of indulgence and inviting, comfortable outlets; with hamburgers, ice cream, and sweet baked goods all in high demand.” Saudi Arabia along with the rest of the Gulf has seen a surge in fast food chains entering the market in recent years, as international brands seek to bolster their global revenues amid increased competition in their domestic markets. Franchise consultants say they have been bombarded with enquiries especially from mid-sized firms eyeing opportunities to open tens of stores around the region. New Zealand fast food chain Burger Fuel said in December it planned to open another 12 stores across the Middle East in the near future, after regional sales grew by 47.29 percent to hit $2m, boosted by outlets in Dubai and Saudi Arabia. Tim Hortons, Canada's largest restaurant chain, also announced plans to roll out 120 stores in the GCC over the next five years, whilst Smashburger said it had signed agreements for 17 stores in Kuwait, Bahrain and Saudi Arabia. Other brands with regional expansion in the pipeline include US ‘fast casual' chains, such as Which Wich, Spicy Pickle and Dressed.
