In 2025, Gulf Food Chains Face 18% Drop in Sales, creating widespread concern among restaurant owners, investors, and food delivery platforms across the Gulf region. The food and beverage industry, once booming with dine-in customers, is now facing a serious challenge due to the rising dominance of online food ordering and delivery platforms.
The decline in sales has been linked primarily to increasing customer dependence on fast, convenient, and affordable online food delivery apps. Traditional food chains are struggling to keep up with changing consumer behaviors, higher operational costs, and the rapid digital transformation of the food market.
Digital Disruption Reshaping the Gulf Food Industry
The Gulf Cooperation Council (GCC) region has experienced a technology boom in recent years, and the food industry has been no exception. Online food ordering platforms like Talabat, Zomato, Deliveroo, and Careem NOW have expanded rapidly, offering competitive pricing, fast delivery, and personalized deals.
As a result, customers are now choosing comfort and convenience over traditional dine-in experiences. According to a recent industry report, Gulf food chains face 18% drop in sales compared to last year, with the highest impact observed in UAE, Saudi Arabia, and Qatar.
Restaurants that failed to adapt to digital trends, invest in mobile apps, or partner with delivery platforms have seen a significant decrease in foot traffic and revenue.
Key Factors Behind the 18% Sales Decline
Several factors have contributed to this drastic sales drop:
- Rapid Growth of Food Delivery Platforms
These apps offer discounts, loyalty programs, and quicker service, making them more appealing than visiting physical restaurants. - Shift in Consumer Preferences
The modern customer prefers ordering food from home or the office. With increasing work-from-home models and fast-paced lifestyles, online orders have become a daily habit. - High Operational Costs
Rent, salaries, and utilities are soaring in many Gulf cities, especially in central business areas. These overheads are pushing traditional restaurants to the edge. - Increased Competition
The food scene in the Gulf is saturated. New cloud kitchens and virtual brands are entering the market at low cost, capturing large market shares with digital-only models. - Lack of Innovation
Many food chains haven’t updated their menus, interior designs, or customer experiences, making them less attractive to younger, tech-savvy generations.
Impact on Local and International Brands
Both local restaurants and international franchises are feeling the heat. Some have closed multiple branches, while others are rethinking their business models.
For instance, a well-known Gulf burger chain shut down eight locations in 2025 alone. Meanwhile, international pizza chains operating in the region reported a 10–15% revenue decrease in the first half of the year.
Experts say that unless food chains embrace digital innovation and restructure their marketing strategies, the decline may continue in 2026 and beyond.
What the Industry Is Doing to Recover
In response to this situation, food chains are taking strategic steps to survive and grow again. Here’s how:
- Investing in Technology
Many restaurants are building user-friendly apps, adding online payment systems, and using AI-based data analytics to understand customer behavior. - Launching Virtual Brands
To compete with online-only food providers, traditional food chains are launching digital sub-brands that exist only on delivery apps. - Improving Delivery Experience
Speed, packaging, and food quality during delivery are now top priorities. Some are also building their own fleet instead of relying on third-party delivery companies. - Promoting Exclusive Deals Online
Restaurants are offering app-only discounts and loyalty programs to increase online orders. - Diversifying Menus and Targeting Niche Markets
Gluten-free, vegan, and health-focused meals are being added to attract health-conscious customers.
Customer Behavior Trends in 2025
The modern Gulf customer wants speed, value, and quality. According to surveys, 63% of Gulf residents order food online at least three times a week. Over 40% prefer ordering via mobile apps rather than websites, and 78% are influenced by reviews and ratings.
These changing habits show that food chains must rethink not only their business strategy but also their digital presence and customer engagement efforts.
Economic Implications of the Sales Drop
As Gulf food chains face 18% drop in sales, the economic consequences are serious. The food and beverage sector in the GCC contributes significantly to GDP and employment. With declining sales:
- Job cuts and reduced hiring have become common.
- Commercial landlords face rising vacancies in food courts and malls.
- Suppliers and vendors in the food supply chain are also affected by reduced demand.
Governments are stepping in by promoting digital transformation in small businesses and providing subsidies for tech upgrades in traditional industries.
Experts’ Outlook for the Future
While the current picture looks challenging, industry experts remain hopeful. They believe that food chains that innovate, collaborate with tech partners, and focus on customer-centric digital strategies can regain lost ground.
According to Nour Habib, a restaurant consultant in Dubai, “The drop in sales is a wake-up call. This isn’t the end of dine-in restaurants, but it is the end of old methods. The winners in 2026 will be those who adapt quickly.”
Conclusion
The fact that Gulf food chains face 18% drop in sales in 2025 sends a clear signal: the industry must evolve. With digital transformation no longer optional but essential, traditional food chains must reimagine their operations, menus, and customer experience to thrive in a fast-changing marketplace.
The competition from online platforms is only going to grow, and survival will depend on how fast and effectively food businesses can adjust to this new digital era.
Also Read – Food Labeling Overhaul: Bold Changes Shocking Gulf Shoppers
