Speciality coffee shop feasibility study
Latest regulatory change: 2025 · reviewed 2026-10-10
A speciality-bean coffee shop, in a market that has seen the "Year of Saudi Coffee" and government investment in the coffee industry.
- 4%Annual growth in coffee consumption, 2016–2021[3]
- 5%Expected annual growth in consumption until 2026[3]
- 63%of Saudis are under 30[5]
Latest regulatory and market changes
- 2019The municipal requirements dropped the rule requiring separate entrances for single men and families in restaurants and cafés.[1]
- 2022The Ministry of Culture launched the "Year of Saudi Coffee" initiative to celebrate Saudi coffee.[2]
- 2022The Public Investment Fund (PIF) launched the Saudi Coffee Company to raise local coffee production and support its value chain in Jazan.[3]
- 2025The Ministry of Municipalities and Housing (MoMAH) adopted updated requirements for using pavements next to cafés, with electronic permits through Balady.[4]
Why now
- 63% of Saudis are under 30, according to the 2022 census.[5]
- The younger generation's taste is shifting towards speciality beans and modern brewing methods, alongside a growing number of Saudi baristas.[6]
4%Average annual growth in coffee consumption in Saudi Arabia between 2016 and 2021, with 5% a year expected until 2026.[3]
The idea and business model
A coffee shop serving coffee made from high-quality beans and brewed several ways, with a distinctive seating and service experience. Revenue comes from drinks, desserts and roasted beans, sold in-store, as takeaway and through delivery.
Model: Food and beverage
Project economics
Revenue formula
Sales channels
- Dine-in
- Takeaway
- Delivery apps
Largest cost items
- Coffee, milk and cups
- Salaries and Saudization
- Rent
- App commissions
Decisive indicators we measure
- Material cost as a share of cup price
- Rent as a share of revenue
- Daily orders to break even
- Margin per sales channel
Relevant authorities
- Ministry of Municipalities and Housing (MoMAH) via Balady: licence and outdoor seating permits
- Saudi Food and Drug Authority (SFDA): food safety
- Civil Defence
- Ministry of Commerce: Commercial Registration (CR)
What needs your attention
- Competition is intense, so location and differentiation decide the outcome.
- Outdoor seating needs a separate pavement permit, so capacity should not be planned around it before the permit is granted.
- Beans are mostly imported, so their cost follows global supply prices.
What a Speciality coffee shop study calculates for you
- Proposed cup price against competitors' actual prices
- Material cost per main drink
- Daily cups needed to break even
- Shifts, number of baristas and Saudization
- Effect of outdoor seating and its permit on capacity
Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.
Sources
Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.
- إلغاء شرط المدخلين المنفصلين في المطاعم والمقاهيعاجل · 2019-12
- ما عام القهوة السعودية؟سعوديبيديا · 2022
- PIF launches Saudi Coffee Companyصندوق الاستثمارات العامة · 2022-05
- البلديات والإسكان تعتمد اشتراطات إشغال الأرصفةعكاظ · 2025-10
- Saudi Arabia population hits 32.2 mln in 2022أرقام (عن الهيئة العامة للإحصاء) · 2023-05
- Saudi cafes embrace a new eraArab News · 2022-09
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.