The Saudi branded coffee shop market leader faces growing competition from domestic operators but has likely benefitted from slowed expansion from US-based rival, Starbucks
US coffee chain Dunkin’ has opened its 800th store in Saudi Arabia with master franchise partner Shahia Food Limited Company.
Massachusetts-based Dunkin’ opened its first Dunkin’ store in the Al-Olaya central business district of Riyadh in 1986 and reached its new landmark with a site in the city’s Al-Arid residential neighbourhood.
Dunkin’ has rapidly expanded in Saudi Arabia in recent years. The Saudi branded coffee shop market leader reached 100 stores in the country in October 2012 and opened its 600th site in December 2022 after opening 30 new sites on a single day during the previous October.
However, Dunkin’s market lead has been narrowed by the growth of several domestic brands – most notably Jeddah-based Barn’s which now operates 775 sites in the country, as well Kyan Coffee, Coffee Address and Overdose.
US coffee chain Starbucks reached 400 stores in Saudi Arabia in July 2023, with its Middle East franchise partner Alshaya Group outlining plans to scale across the country as part of wider strategy to open 250 net outlets annually across the Middle East.
However, the coffee giant has reigned in expansion over the last 12 months as ‘misperceptions’ regarding its position on the Gaza conflict has led to sustained customer boycotts across the region. Saudi Arabia remains Starbucks largest MENA market with 488 stores.
Inspire Brands-owned Dunkin’ has more than 13,700 outlets in 40 markets globally, including approximately 1,000 stores across nine MENA markets.
