The restaurant environment in Saudi Arabia, like many other industries around the world, is grappling with the challenges of digital transformation. Customer expectations, increasing competition, and focus on operational efficiency, including the effective management of administrative tasks, are just a few of the factors driving this process.Technology is now a key enabler for restaurant management. The support of software solutions that optimize order processing, payment processing or customer engagement is crucial in this case.
However, not all software solutions are created equal. Restaurant operators face a critical decision:
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Should they implement off-the-shelf restaurant management software (RMS)? You can find solutions on the market such as Foodics, Lightspeed or HDRestaurant, which offer predefined functionality, but are limited in terms of flexibility.
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Should they invest in a customized restaurant management system? Solutions of this type are built to fit a restaurant’s unique operational workflows. At the same time, they allow integration with local payment systems and support the customer engagement process.
While off-the-shelf solutions can meet basic operational needs, their standard approaches often fail to address industry-specific challenges.
Custom software, on the other hand, guarantees long-term scalability, performance and competitive differentiation. This is an essential approach for restaurant chains and businesses with multiple locations.
While working on this article, I would like to introduce and analyze both approaches in such a way as to compare their structures in a business context. In addition, I will share with you successful implementations of custom software that Railwaymen has undertaken so far. Starring will be food service applications implemented for Shawarmer and Alamar Foods.
Saudi Arabia Food Service Market Overview
Market Size and Growth
The Saudi Arabia food service market is on a robust growth trajectory, expected to expand at a CAGR of 8.20% from 2025 to 2030. This growth is driven by factors such as the rising number of working women, increasing household incomes, and a growing demand for international cuisines. By 2030, the market size is projected to reach USD 44.67 billion, up from USD 30.12 billion in 2025. This surge highlights the increasing demand for convenient and affordable dining options, creating opportunities for both established brands and new entrants.
Market Segmentation
The Saudi Arabia food service market is diverse, encompassing various segments such as full-service restaurants, quick-service restaurants, cafes and bars, and others. Among these, the full-service restaurants segment stands out, commanding approximately 54% of the market share in 2024. This dominance is fueled by the increasing emphasis on hospitality and communal dining experiences, particularly among the younger population. Quick-service restaurants also play a significant role, catering to the fast-paced lifestyle of urban dwellers seeking quick and convenient meal options.
Major Players
The competitive landscape of the Saudi Arabian food service market is shaped by several major players, including ALBAIK Food Systems Company S.A., Americana Restaurants International PLC, M.H. Alshaya Co. WLL, Riyadh International Catering Corporation, and Shahia Food Limited Company. These industry giants are continually expanding their market presence through strategic partnerships and investments in technology. For instance, ALBAIK Food Systems Company is renowned for its innovative approaches and commitment to quality, setting a high standard in the market.
Functional Scope of Restaurant Management Software
Core Features of Ready-Made RMS Solutions
A restaurant management system (RMS) provides an integrated platform for:
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Point-of-Sale (POS) Operations – Processing payments, managing orders, and integrating with kitchen display systems.
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Restaurant Inventory Management – Monitoring stock levels, tracking supplier deliveries, and reducing waste. This feature streamlines inventory processes, reduces costs, and improves overall efficiency for restaurant operators.
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Customer Relationship Management (CRM) – Managing loyalty programs, customer feedback, and targeted promotions.
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Financial Reporting and Analytics – Generating sales reports, monitoring profit margins, and managing multi-location performance.
Standard Solutions Available in the Saudi Food Service Industry Market
The following off-the-shelf RMS solutions are widely used in Saudi Arabia:
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Foodics – A cloud-based restaurant POS and management system tailored to the MENA region.
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Lightspeed – A global platform supporting multi-location restaurant management.
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HDRestaurant – An RMS with advanced table management and order tracking.
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Lavu, RePOS, and Focus e-RMS – Offering varying levels of POS, CRM, and reporting functionalities.
While these systems provide generalized functionality, they often lack the customization needed for specialized restaurant chains, particularly in regions with unique regulatory and operational requirements.
Limitations of Off-the-Shelf Restaurant Software in the Restaurant Industry
Despite their convenience, RMS platforms have a number of limitations that translate into operational flexibility in the food ordering process and long-term performance. Standard RMS platforms may struggle with effectively managing food costs, which can be a significant financial challenge for restaurants. Among the pain points faced by parts of the foodservice industry are:
1. Limited ability to adapt tools to business needs and competitive landscape trends
Many RMS platforms lack the ability to fully integrate with Saudi payment operators such as Moyasar, Mada, and STC Pay due to their limited adaptability to market dynamics, including the competitive landscape and evolving business needs. Additionally, regulatory requirements involving data storage issues can stand in the way of using international RMS solutions.
2. Lack of competitive differentiation to compete with key players
Standardization of loyalty programs, promotions, and customer engagement tools limits opportunities to be among full-service restaurants and offer unique digital experiences. Customized ordering platforms and personalized promotions can be problematic at the implementation stage within a predefined RMS framework.
3. Vendor Lock-In and Dependency
Restaurant operators are fully dependent on third-party software vendors for updates, feature implementation, and system enhancements. In the event that an RMS vendor drops support or makes changes to pricing models, business continuity may be affected.
4. Data Ownership and Security Concerns
Many foodservice businesses with an RMS platform collect customer data and financial transaction information on third-party servers, which can raise data privacy concerns. Ensuring food safety is also crucial in this context, as regulatory compliance in the Saudi Arabian foodservice market demands adherence to strict standards. Independent restaurants' custom-built software allows food service business owners to maintain full control—both in business analytics and access to customer data.
5. Increasing Costs Over Time
Off-the-shelf solutions offer a lower initial cost, which is why many restaurant industry representatives incur additional expenses for workarounds, limited integrations, and features as they grow.
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The Business Case for Custom Restaurant Software
1. Tailored Workflow Optimization
A custom-built RMS is designed to match a restaurant’s operational structure, workflows, and unique service model. This includes:
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End-to-end digital ordering and payment processing.
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Automated kitchen operations for faster service times.
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Real-time analytics dashboards tailored to business objectives.
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Streamlined administrative tasks for improved operational efficiency.
2. Integration with Local Systems
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Custom solutions allow full compatibility with existing POS systems, delivery platforms, and local payment gateways, making it ideal for any foodservice business.
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Saudi-specific financial regulations can be embedded into the software architecture, ensuring compliance.
3. Long-Term Cost Efficiency
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No recurring subscription fees associated with third-party RMS providers.
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Full ownership of digital assets, avoiding long-term vendor dependency.
4. Scalability for Future Expansion
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Unlike standard software, custom-built platforms evolve alongside the restaurant’s growth strategy.
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Multi-branch operations can be managed under a single, unified system.
Railwaymen’s Custom Restaurant Software Success Stories
Case Study: Alamar – Digital Wallet & Multi-Brand Payment Integration
Alamar, the operator of Domino’s Pizza and Dunkin' Donuts in Saudi Arabia, required a custom digital wallet solution to enhance its payment infrastructure.
Developed Features:
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Multi-brand, multi-currency eWallet system.
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Custom API integration for real-time fund transfers.
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Moyasar and STC Pay payment compatibility.
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Scalable architecture supporting future restaurant brands.
Case Study: Shawarmer – Restaurant Data Analytics & Custom Ordering Platform
Shawarmer, a leading fast-casual restaurant chain in Saudi Arabia, partnered with Railwaymen to develop an advanced restaurant ordering system integrated with local NCR POS infrastructure. Custom ordering platforms are also becoming increasingly relevant for coffee shops, which are experiencing significant growth and dynamics within the broader foodservice market.
Implemented Capabilities:
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Bilingual mobile app for seamless ordering and delivery tracking.
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Custom loyalty program and rewards management system.
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In-depth analytics dashboards tracking customer behavior.
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Multi-payment support, including Mada, Apple Pay, and cashback incentives.
Both Alamar and Shawarmer achieved significant efficiency improvements, enhancing customer engagement, operational visibility, and brand differentiation.
Key Considerations for Restaurant Inventory Management
When evaluating software solutions, restaurant owners should assess:
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Business Model Complexity – Large-scale operations require customized software to ensure seamless execution.
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Integration Needs – If existing POS, delivery, or financial systems require customization, custom development is the optimal approach.
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Data Strategy – Businesses that value ownership of customer and financial data should avoid vendor lock-in.
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Long-Term Cost Considerations – Custom solutions offer better ROI compared to the recurring costs of SaaS models.
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Effective management of inventory cost to ensure financial efficiency.
A Strategic Approach to Restaurant Software Selection
Off-the-shelf restaurant management systems provide a starting point, but their limitations become evident as businesses scale. Understanding the market value of different software solutions is crucial in selecting the right one. For restaurants focused on growth, efficiency, and customer loyalty, custom software development is the superior long-term investment.
With Railwaymen’s expertise in custom FoodTech solutions, Saudi Arabian restaurants can build scalable, high-performance software ecosystems tailored to their specific needs.
Interested in a tailored restaurant management solution?
Contact Railwaymen to explore how custom software can transform your business operations.
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