SWOT Analysis: A Must-Have Business Strategy Tool For Saudi Arabia Restaurants

restaurant swot analysis

Creating a restaurant business plan is essential as it helps you with better planning and provides insights to run your business better. One of the critical components of a restaurant business plan is the SWOT Analysis. A SWOT Analysis is a process that primarily involves identifying the Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T) of the restaurant business. Operators must utilize SWOT analysis to plan their restaurant business strategies. A SWOT analysis is represented in the form of a two by two grid, with Strengths on the top left side, Weaknesses on the top right side, Opportunities on the bottom left side, and Threats on the bottom right side. This article will discuss why there is a need for SWOT analysis while creating a restaurant business plan and how to do one for your restaurant business in Saudi Arabia. 

The Need For SWOT Analysis In A Restaurant Business Plan In Saudi Arabia

A SWOT analysis should always be included in the restaurant business plan as it helps analyze the current situation and prepares restaurant operators for what lies ahead. While creating a restaurant strategy, you can then leverage the SWOT Analysis to identify where you should use your strengths to take advantage of the opportunities at hand and work to eliminate your restaurant’s weaknesses to avoid potential threats. The ultimate aim of including a SWOT analysis in the restaurant business plan is to be better prepared for unexpected downturns or new opportunities that might arise.

How To Do A SWOT Analysis For Your Restaurant In Saudi Arabia 

Doing a proper SWOT analysis is critical to the success of your restaurant. These are some of the steps that will help you go about it in the right way.


The first thing one should note down while creating a SWOT analysis plan for your restaurant is its strengths. The strengths of your restaurant business are a result of internal factors. These are the key advantages your business has over other restaurants that tend to give you an upper edge. While noting down the strengths in your SWOT analysis, it is essential to list down all the positive attributes of your restaurant.

These are the factors that help you generate revenue. For example, innovative menu items that are unique to your restaurant or a prime location that gets a high footfall. You must leverage your restaurant POS to ensure that your restaurant is making maximum profits and thereby listing more attributes that contribute towards strength.


No matter how well equipped your restaurant business is, it is bound to have some weaknesses that are inherent to the business. Instead of living in denial, it is recommended to identify these weak areas and improve them. While doing the SWOT analysis, under the weakness section, mention all the areas where your restaurant is disadvantaged.

This could be anything that costs you undue money and makes you lose out on profits, such as inexperienced staff or a limited marketing budget. Even if these weaknesses are not under your complete control, you can work efficiently towards compensating for them.


Opportunity is an area where you see real potential in your restaurant business and the thrift to drive more profits. You can identify the opportunities by observing actual possibilities that will increase your restaurant sales. These can be the possible trends that you can catch on early and harness them to attract the customers. For instance, an upcoming shopping complex near your restaurant would nurture the sales and further help get high footfalls.


Threats are the external factors that can potentially hamper your restaurant business. It is unlikely for the restaurant operators to have complete control over these factors. But they must still be included in your restaurant business plan as they prepare your restaurant for unforeseen circumstances.

A risk factor is involved in all types of businesses, and the restaurant business is no exception. Hence, you must try to identify all the factors that may pose a threat to your business, now and in the future. One of the most common risks in the restaurant business today is sustaining the business, surviving the growing competition, and fulfilling customer expectations. Therefore, it is necessary to identify these potential threats and prepare your restaurant in advance to survive any kind of crisis. 

By properly analyzing their restaurant’s Strengths, Weaknesses, Opportunities, and Threats, F&B operators in Saudi Arabia can rest assured of increasing their overall revenues and taking their businesses to new heights.


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Nikunj is the Communications Lead at Restroworks, a global leader in cloud-based technology platforms. In his role, he oversees global marketing and branding initiatives for Restroworks across APAC, the Middle East, and the US.


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