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Seven Factors Driving the Success of Restaurants

Updated: May 1, 2021

I know that the actual situation is not very encouraging when you look around and contemplate the food landscape! But this will not last forever! Nobody wants this and many are doing all what they can to change this as fast as possible from governments to individuals, so hang on and get ready for what is coming. I’m sharing here 6 factors that are showing positive signs and driving you to success.

  • Changing Consumer Habits

The global food and beverages market is expected to grow from $5943.8 billion in 2019 to $6111.1 billion in 2020 at a compound annual growth rate (CAGR) of 2.9%. The low growth is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 7% from 2021 and reach $7527.5 billion in 2023.

  • Global Full-Service Restaurants Industry

Global Full-Service Restaurants Market to reach $1.7 Trillion by 2027, amid the COVID-19 crisis, the global market for Full-Service Restaurants estimated at US$1.2 Trillion in the year 2020, is projected to reach a revised size of US$1.

  • Bahrain Full-Service Restaurants Industry

  1. Revenue in the Food & Beverages segment is projected to reach US$16m in 2021.

  2. Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 5.02%, resulting in a projected market volume of US$19m by 2025.

  3. User penetration will be 22.4% in 2021 and is expected to hit 26.9% by 2025.

  4. The average revenue per user (ARPU) is expected to amount to US$40.40.

  • Millennial and Baby Boomer Dining Habits

Millennials are a driving force when it comes to restaurant visits and consumption, but they're not the only age group driving sales, while Millennials dine out more frequently than any other generation, they actually spend less(16% less) than Gen-X and (26% less) than Baby Boomers. Baby Boomers and consumers between the ages of 45 and 54 generate the most in restaurant sales.

  • The Fast-Casual Boom

When it comes to restaurants, fast casual has been the growth charming of the industry for years, while it still accounts for less than 10% of the total market, the number and diversity of fast casual restaurants has been exploding across the country. Evolving consumer tastes and creative restaurant concepts are the driving forces behind this growth. Increasingly consumers are looking for healthy alternatives and are more dynamic in their tastes - they’re looking for more than the typical burger and fries.

  1. That is the gap that fast casual is filling and growing: higher quality, imaginative cuisine served to a population on the move. The sector is still evolving and expanding at a rapid rate - and there is great opportunity for the interested entrepreneur.

  • Growing popularity of food trucks

Sales from food trucks are taken into account when determining the sales and revenue of the food and beverage service industry. There is a rapid increase in food trucks in Bahrain. The initial investment and low overhead to operate a food truck is a big attraction for food entrepreneur looking to penetrate the market, and many of the existing fast-casual restaurants are shifting to that model to reduce their cost and reach wider customer base.

  • Growing popularity of online food brands

Also we notice an interest in commercial cloud kitchen operation investment, this will accelerate creation of food brands as well as the transition of home food businesses to a professional setup with trade certification that will open doors to more support for this segment of micro entrepreneur as example we see Kitopi getting ready to start operation in the market, it will eliminate an important step for starting an online food business which is the heavy investment of FF&E thus making it easier to start within a month or less.

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