Costa Coffee reaches 100 outlets in Saudi Arabia with Alghanim Industries

Costa Coffee and franchisee Alghanim Industries have reached 100 stores in Saudi Arabia with a new site in Riyadh. 
 

Kuwait-based Alghanim Industries acquired franchise rights to Costa Coffee in Saudi Arabia in July 2019 and primarily operates coffee shops across Riyadh and Jeddah. 

UK-based Costa Coffee said it is committed to further growth in the ‘vibrant’ Saudi market as well as the wider Middle East and North Africa (MENA) region. The coffee chain also has a presence in Kuwait, Oman and Qatar via Alghanim Industries, as well as the UAE, Bahrain, Morocco, Egypt, Kazakhstan and Jordan. 

To further highlight its commitment to the Saudi market, Costa Coffee has partnered with the Saudi Coffee Company to serve its Jazean filter coffee across its 100 stores.  

Founded in May 2022 and backed by a SAR 1.2bn ($320m) investment from Saudi Arabia’s Public Investment Fund (PIF), the Saudi Coffee Company is seeking to develop Saudi Arabia’s domestic coffee industry through sustainable agronomy, education and trade deals. 

In February, Saudi Coffee Company struck supply deals with Jeddah-based coffee chains Barn’s and BON cafe. However, the Costa Coffee partnership marks the first time it has collaborated with an international operator in the Kingdom. 

Read related content: Inside Saudi Arabia’s coffee shop boom 

The Saudi Arabian branded coffee shop market is currently led by US chain Dunkin’ and domestic drive-thru-focused brand Barn’s, which both operate more than 650 stores across the country. 
 

Outlet growth is also being driven by the expansion of several midsize coffee shop operators, including Manto Rose, Half Million and 8oz Coffee, as well as Riyadh-based Address Café, which also reached the 100-store milestone this month. 

World Coffee Portal’s Project Café Middle East 2023 report forecasts the total Saudi Arabian branded coffee shop market will exceed 5,350 outlets by 2027.