Kitopi: Powering Growth of Cloud Kitchens in Saudi Arabia
With its strategic entry into Saudi Arabia, the UAE-founded Kitopi is pioneering the cloud kitchen space in the Kingdom
In 2018, the concept of cloud kitchens was new to the Middle East. The UAE-based Kitopi has solidified its position as a first mover in this niche sector, and it now operates over 200 restaurant brands across multiple countries in the region.
The company's growth story continued with its expansion into Saudi Arabia’s F&B sector back in 2019, supported by AstroLabs, the Gulf's leading business expansion platform.
Deepening On-the-Ground Presence in Saudi Arabia’s F&B Sector
Saudi Arabia's food service market is one of the most active and fastest-growing industries. In value terms, it was worth $26.61 billion in 2024 and is projected to nearly double to $51.64 billion by 2033.
As more restaurants and F&B establishments make their way into Saudi Arabia, there is an increasing need to test and run various concepts to cater to evolving customer preferences.
This has fueled demand for delivery-centric cloud kitchen concepts, with Kitopi leading the segment's growth thanks to its growing investments in kitchen technology and vast distribution networks.
Reflecting on the company's expansion journey, Bader Ataya, co-founder and chief growth officer of Kitopi, touched on how AstroLabs streamlined the business setup process in Saudi Arabia.
"AstroLabs was incredible in the sense that they held our hand through every step of the journey, from setting up licenses to having a bank account. They also helped my launch team get visas so that we were able to be in the market in record time. They gave us office space where the team was able to work rather than typically working in construction sites or kitchens," said Ataya.
This support allowed Kitopi to start operations immediately while building a strong foundation for scaling reach and impact.
Driving Growth and Sustainability in the Food Delivery Industry
The expanding tourism sector, coupled with an expanding roster of international events, such as the 2034 FIFA World Cup and Expo 2030, is a significant factor in the food delivery sector’s growth.
In fact, Saudi has been named the fastest-growing tourism market among G20 countries for two consecutive years. Looking ahead, it plans to attract 150 million visitors annually by 2030.
"I am very much ingrained in the food scene there, and you can get to see the best restaurants from all across the world opening up in Saudi. Whether it's a Michelin-starred restaurant or a small shop in Italy that is interested in being in Riyadh, you can get that there today. Additionally, many unbelievable entrepreneurs are developing concepts that are now scaling everywhere," Ataya explained.
These favorable market conditions created perfect opportunities for the ongoing development of cloud kitchens and food deliveries, which constitute around 80% of the company’s sales. For Kitopi, Saudi has become Kitopi's launching pad for global expansion, providing a fertile ground for the company’s merger and acquisition (M&A) activity.
"We are identifying restaurant concepts that we are investing in or buying and then helping scale in many major markets, first across South Asia, then the Gulf, and then potentially across the world."
Demonstrating its leadership position in Saudi Arabia’s F&B sector, Kitopi also been committed to spurring eco-friendly packaging, contributing to the Kingdom's Net Zero emissions target for 2060 and Vision 2030's sustainability goals.
"I'm proud to say that we have now converted our packaging to around 89% plastic-free, and our goal is to contribute nothing to landfills moving forward. Also, we are segregating our non-food and food waste. We send that food waste to a partner business to be later converted to animal feed and plant fertilizers and then used in vertical farms," Ataya detailed.
Kitopi's sustainability work goes beyond packaging. The company is focused on accelerating partnerships and integration with fellow companies to advance eco-friendly practices in the industry.
One prime example of this is Kitopi's partnership with Yellow Door Energy, another company in AstroLabs' network. Together, they built a 523-kilowatt solar plant that will generate 838 megawatt-hours of clean energy in its first year.
"We have a lot of assets, including kitchens and restaurants, and we are engaging with a lot of different businesses that help us reduce the amount of water and food waste as well as convert our electricity from an on-grid to a solar panel," he added.
As the market grows, the need for sustainable delivery solutions will only increase. For Kitopi, sustainability is a strategic priority, not just an add-on.
"It is an ongoing matter that we will dedicate more and more resources to over time. And I'm seeing this behavior shift across the majority of businesses in the region as well," Ataya concluded.
