How much does it cost to open a restaurant in Riyadh?

By Denys Chernenko · Updated 20 October 2026

There is no single number, and anyone who gives you one without seeing your site and your concept is guessing. What there is: eight cost lines that every Riyadh opening has, a method for sizing each one from your own quotes, and two ratios that tell you whether the total is affordable before you sign anything.

This article does not quote government fees or contractor rates. Fees change, and contractor quotes in Riyadh vary widely by district and finish. Every figure below is an illustrative example, marked as such, to show how the pieces fit. Get your own quotes, then put them into the same structure.

The eight cost lines

1. Legal set-up and licences. Commercial registration, the municipal licence for a food outlet, food safety approvals, and the labour-office registrations that come with hiring. If a foreign partner is involved, the investment licence is a separate step with its own requirements. Budget professional help for this; the time saved is worth more than the fee.

2. Rent and deposit. Riyadh landlords commonly ask for rent in advance, often a year or more, plus a deposit. That makes rent an opening cost as well as a running cost. Rent as a share of your projected sales is the single ratio that decides most openings, and it is covered below.

3. Fit-out. Flooring, ceilings, walls, lighting, bathrooms, air conditioning, the shopfront and the dining room furniture. This is the line that runs over most often. It runs over because the design is finished before the budget is, and because every change after the contractor starts is priced as an extra.

4. Kitchen and bar equipment. Cooking line, refrigeration, extraction, dish area, small wares. A second-hand line from a closed restaurant can cut this sharply, and in Riyadh there is usually one available. Match the equipment to the menu, not to the chef's wish list.

5. Systems. Point of sale, a recipe and inventory system, an accounting set-up, delivery-platform tablets and the integration between them. Small line, large consequences: if the POS cannot report sales by item and hour, the food-cost work later becomes guesswork.

6. Pre-opening payroll. You will pay people before you sell anything: the manager and chef for two to three months, the full team for two to four weeks of training. In Saudi Arabia, add visa, medical, Iqama and housing costs for expatriate hires and the Saudization ratio for the roles you must fill locally. This line is forgotten more often than any other.

7. Opening stock and launch. First food and beverage order, packaging, uniforms, menus, signage and whatever you spend on the opening itself. Keep the launch modest. A full room on opening night proves nothing; a steady second month does.

8. Working capital. The cash to cover losses until the room breaks even. New restaurants rarely cover their costs in the first month, and many take three to six. If this line is zero in your plan, the plan is not finished.

A worked example: a 48-seat café

This is an illustrative example with round numbers, not a quote and not a client result. Your own numbers will differ.

Imagine a 180-square-metre café unit in a north Riyadh neighbourhood, 48 seats, open 7 am to midnight. The owner gathers quotes and the opening budget comes to SAR 1.6 million: licences and professional fees 60,000; rent in advance and deposit 300,000; fit-out 550,000; kitchen and equipment 280,000; systems 40,000; pre-opening payroll 150,000; opening stock and launch 70,000; working capital 150,000.

Two things stand out. Fit-out plus equipment is more than half the total, which is typical, and the working capital is less than one month of running costs, which is thin. If the room takes four months to break even, the owner will be looking for money in month two.

The two numbers that matter more than the total

Rent as a share of sales. Take the annual rent and divide it by the sales you can defend, built up from seats, turns and average spend, not from a target. If rent is above about 10 to 12 percent of realistic sales, the room will struggle whatever else you do well. In the café example, SAR 240,000 of annual rent against SAR 2.4 million of defensible sales is 10 percent. Against SAR 1.8 million it is 13 percent, and the deal needs renegotiating.

Months to break even. Estimate the monthly loss in the first months and divide your working capital by it. If the answer is less than the number of months it will realistically take to reach break-even, raise more money or cut the fit-out. This is the calculation a feasibility study exists to do before the lease is signed.

Where Riyadh openings overspend

Three places, in order. Fit-out changes after the contractor has started. Equipment bought for a menu that then changes. Pre-opening payroll that runs long because the licence or the fit-out slipped and the team was already hired. Each is a timing problem as much as a money problem, and a dated opening plan is the fix.

Common questions

Can I open a small café in Riyadh for much less than this?

Yes. A smaller unit, a simpler menu, second-hand equipment and a lighter fit-out can bring the total well down. The eight lines stay the same; only the amounts change. The two ratios still have to work.

Should I include my own salary in the opening budget?

If you will not take one until the room is profitable, include the months of living costs in working capital. Owners who do not often pull cash from the till and never see the true profit.

How long does it take to open a restaurant in Riyadh?

From signing the lease, plan on several months: licences, fit-out and hiring run in parallel, and the slowest one sets the date. A realistic timeline with dates is part of the opening budget, because every month of delay costs rent and payroll.

The cost categories above follow the structure The DC Group uses in its own opening budgets. No government fee or contractor rate is quoted because both change; confirm current fees with the issuing authority and get written quotes for fit-out and equipment.

Wondering what help like this costs? See how much restaurant consultants charge and which model fits your situation.

Related service: Restaurant feasibility study → · Free P&L calculator →