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Cost of Designing and Implementing a Coffee Shop in Saudi Arabia 2025: A Comprehensive Investment Guide

Cost of Designing and Implementing a Coffee Shop in Saudi Arabia 2025: A Comprehensive Investment Guide

Date: 2025/06/29

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The Cost of Designing and Implementing a Coffee Shop in Saudi Arabia 2025: A Comprehensive Investment Guide

Demand for specialty coffee in Saudi Arabia has increased by 9% annually through the end of 2024, and experts expect continued growth in 2025, driven by the "Spirit of Saudi Arabia" initiatives and increased consumer spending on upscale hospitality experiences. Therefore, entrepreneurs frequently ask: How much does it cost to design and build a coffee shop in Saudi Arabia in 2025? This practical guide provides accurate figures and engineering and marketing advice from the SMD Decoration team to ensure a successful investment and a rapid return on capital.

Modern Youth Cafe 2025

Analysis of the Saudi Coffee Market 2025 and its Impact on Costs

A report by the Saudi Food and Beverage Authority shows that the number of licensed cafes exceeded 29,000 by the end of 2024, with a net growth rate of 12 new cafes per day. This competition is driving rents and decor prices higher, but it is also creating a market hungry for innovative ideas and fast service. A quick SWOT analysis shows:

  • Strengths: High purchasing power, digital infrastructure, government support for small businesses.
  • Opportunities: Specialty coffee, mobile cafes, monthly subscriptions.
  • Challenges: Saturation of some upscale neighborhoods, high salaries for skilled baristas.
  • Threats: Global coffee price volatility, competition from international chains.

    Saudi Coffee Shop Market 2025 - An Analytical View

Choosing a Location and Renting a Coffee Shop in Saudi Arabia 2025

Location is the primary factor in the profit equation, determining daily footfall and pricing margins. The average rent for a space between 50 and 150 m² is :

The city Monthly Rent Range (SAR) Influencing factors
Riyadh 15,000 – 60,000 Main streets, malls, near universities
grandmother 12,000 – 50,000 Corniche, New Neighborhoods North
Al-Khobar/Dammam 10,000 – 40,000 Upscale neighborhoods, close to the Corniche
Developing cities (Hail, Abha...) 5,000 – 20,000 Main roads, emerging complexes

Engineering Tip: Request a DWG drawing to verify compatibility with utility infrastructure (drainage, gas, electricity). Negotiate a two-month grace period to complete the decoration without financial pressure.

 

Classic Luxury Cafe 2025

Interior and exterior design and its impact on the average bill

Euromonitor KSA 2024 studies show that Saudi customers are willing to pay 18% more when a café offers them an Instagrammable experience . Estimated costs:

stage Price/m2 ( SAR) Outputs
Conceptual design 120-250 Moodboard, spatial diagram, color identity
3D detailed design 180 – 380 Architectural and MEP panels
Excellent decor execution 1,200 – 1,800 Natural wood floors, marble, recessed lighting

Every additional 1 riyal in decor improvements results in a ≈ 1.4 riyal increase in the average bill. Request a quote from a professional coffee shop designer to ensure a balanced cost-benefit ratio.

Ultra-Professional Cafe - Profitable Experience 2025

Basic Equipment and Start-up Capital 2025

The device Price (SAR) Technical advice
Dual Boiler Espresso Machine 28,000 – 55,000 Choose a brand with local maintenance within 24 hours
65mm coffee grinder 6,000 – 14,000 Flat blade for stable grinding under pressure
Double-sided display refrigerator 12,000 – 28,000 Low‑E glass to reduce energy consumption
ZATCA compliant cloud POS system 6,000 – 12,000 Instant electronic invoices and sales analytics
Furniture (25 seats) 18,000 – 45,000 Moisture-resistant wood and easy to maintain

Total CapEx ranges from SAR 200,000 to SAR 850,000 depending on the cafe category.

Government licenses and requirements for opening a coffee shop in 2025

  1. Commercial activity license – Balady platform : 3,000 – 6,000 SAR.
  2. Safety Permit - Civil Defense: Starting from 172 SAR.
  3. Food facility registration - Food and Drug Authority : 5,000 SAR.
  4. Health certificates for employees: 200 SAR per employee.

As ofCaffeine and calorie content must be displayed on the menu according to SFDA regulations.

Luxury classic cafe design 2025

Monthly operating costs for a Saudi cafe in 2025

Item Cost (SAR)
Salaries (5 employees) 17,000 – 32,000
Raw materials (specialty coffee, milk…) 11,000 – 24,000
Utilities (electricity/water/internet) 3,500 – 6,500
Continuous digital marketing 3,000 – 9,000
rent According to the table above

Add equipment depreciation at 5% per year.

Budget scenarios and capital payback period

Category CapEx Opex/month Expected revenue* Net profit Recovery period
Small (≤50 m²) 200k 45k 86k ≈22% 9–12 months
Medium (~100 m²) 450k 70k 115k ≈23% 13–16 months
Luxury (≥150 m²) 850k 110k 160k ≈21% 18–24 months

*120 daily invoices x 24 riyals average invoice.

Najdi coffee shop design 2025

Marketing and launch plan to reduce costs and increase profits

  • Strong visual identity: authentic logo, warm colors, distinctive cup packaging (6–15k SAR).
  • Soft Opening: 20% off week + NPS survey.
  • Micro-Influencers: 3 local influencers (8–12k SAR) to cover their experience.
  • Google Maps & Waze Ads: Target 5 km radius (1k SAR/week).
  • Monthly Subscriptions: A daily cup of coffee at a fixed price that brings in upfront cash.

Design and construction experts' tips for reducing costs and improving profitability.

The Cafe Project Management Team makes five critical recommendations:

  1. Adopting high quality engineered wood to reduce the decoration item by 15%.
  2. Installing energy-saving LED lights reduces your electricity bill by 20%.
  3. Sign a long-term supply contract with a local roaster to receive a 10% discount on coffee.
  4. Adding motion sensors to bathrooms to reduce water consumption.
  5. Track costs and profits via the POS dashboard to optimize pricing.

Cafe of the Future - Smart Investment and Tough Design (2025)

Conclusion: Why choose SMD Decoration?

A carefully designed café can pay back its investment in as little as one year, provided the right location is chosen, expenses are controlled, and effective marketing is implemented. SMD Decoration offers a comprehensive solution from design to operation, with a free 30-minute consultation. Contact us now and receive a personalized analysis for your project.

If you have a question or inquiry, you can get the answer from the  Question and Answer page.

Services provided by  SMD Decoration

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A leading company in the field of interior design and decoration in Türkiye and the Arab region

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