Posted: September 3rd, 2013
Burger King Franchising in Saudi Arabia
Burger King Franchising in Saudi Arabia
Franchising has becoming a lucrative business in Saudi Arabia. Since its inception in Saudi Arabia, the success rates are extremely high while the unsuccessful rates are extremely low. As a result, many businesspersons in Saudi Arabia have taken advantage of these opportunities and ventured into this industry. According to statistics, many people in Saudi Arabia are looking for quality goods and services. In this case, the American industries have also taken these opportunities and they have vigorously marketed their products in the Saudi Arabian market. This has resulted to businesspersons franchising using the American companies. One of the most prominent brands commonly franchised in Saudi Arabia due to its fame, quality and advantages is Burger King.
Franchising can be described as when a company decides to use a brand that is common in the market to distribute goods and services to the customers. In this case, the buying company is expected to display all the brands to the company. The employees are expected to wear the company colors if it is the company policy. Moreover, the buying company is expected to follow the policies of the mother company (Olayan Group of Companies, 2012). In case the franchise company needs to introduce a new policy, all the other companies are consulted and are expected to follow.
Burger King was founded in Florida, America by Keith and his wife. They were inspired by the McDonald brothers. However, the company has been marred by difficulties all through despite the significant growth that it took all over the years until present. Franchising of Burger king in Saudi Arabia started in 1990, by Olayan Financing Company (Olayan Group of Companies, 2012). The group started opening several Burger King Restaurants where people came to eat. The business continued to boom and currently there are many Burger King Restaurants that are currently opened in Saudi Arabia.
In Saudi Arabia, Burger King Restaurants have been opened in the metropolitan areas of Riyadh, Jeddah and Dammam. Olayan Group of Companies has introduced other Burger King Restaurant in Makkah, Hofuf and Jubail. This clearly shows that the people of Saudi Arabia embraced the burgers and they are asking for more in the restaurant. This increase in customers has led to the significant growth of the Burger King Restaurants in Saudi Arabia. Additionally, the opening of the new restaurants is a testimony of immense growth of the Burger King Franchise in Saudi Arabia.
Recently, the Olayan Company has introduced new products that will suit the Muslim community and will not affect their religion. This new product is referred to as the ‘big king.’ Literally, the burger is huge thus; it is corresponding with the name. The regional Burger King Franchise is promoting the new product using slogans like ‘big king, big taste, more meat and less bread’ (Olayan Group of Companies, 2012). According to the financial data, Olayan Group of Companies Chief Executive Officers indicates that the new product has been embraced by the customers and revenues have increased significantly.
According to the Burger King Headquarters, the Saudi Arabian Burger King Franchise has been the most successful franchise internationally. As a result, the management team was awarded with a trip to Miami as their price money. This shows that the Burger King Franchise in Saudi Arabia has had a significant growth in Saudi Arabia more than the other franchises internationally. In this case, Franchise business in Saudi Arabia is booming business for the businesspersons to venture in since the risk rate is low while the success rate is high.
The advertising of the Burger King Restaurant in Saudi Arabia is extremely different from the other franchises in other companies. This is because the advertisements must respect the Muslim religion. If not it means that the company is disrespecting the Muslims. This will result the company loosing most of their customers to their competitors. In this case, there is one advertisement that has been developed for the purposes of advertising in Saudi Arabia (Olayan Group of Companies, 2012). It is because of such strategies, the Burger King Restaurant in Saudi Arabia is flourishing.
Finally, after Saudi Arabia won the bid to hold world cup, the management of the company has decided to introduce new strategies. These strategies are aimed at attracting potential customers who will come to watch the world cup in Saudi Arabia. In this case, the management has decided to introduce big screen television in the restaurants. This will encourage the hungry funs to watch the world cup while they are eating burger in the Burger king restaurant. This strategies shows Burger King Franchise in Saudi Arabia has potential growth in the near future (Olayan Group of Companies, 2012).
Finally, all this success can be attributed to the newly promoted Burger King Franchise Chief Executive Officer Samer Al-Khawashki. He started as the marketing manager in 1993 when Burger King Restaurants were big opened in Saudi Arabia. At this time, the Olayan group Of Companies needed to promote the company so that they could create awareness to potential customers to increase the sales of the company. He took this task and he has promoted the companies name in Saudi Arabia resulting to the significant growth over the past few years (Olayan Group of Companies, 2012).
Franchising can be described as the process where a company distributes goods and services using another company’s brand name. In this case, it buys the rights from the mother company in order to use the brand. Burger King Franchising is Saudi Arabia has been significantly been growing since its inception. It first started in Riyadh but it has significantly grown creating new stores all over Saudi Arabia. Currently, the franchise is experiencing high revenues and it has a growth potential especially in the world cup season.
Olayan Group of Companies. (2012). Charting Strategies For the Future. Communiqué. Riyadh, Saudi Arabia.
Olayan Group of Companies. (2012). Food Franchising in the Middle East. Retrieved from: http://www.olayan.com/operation_details.aspx?productid=17
Olayan Group of Companies. (2012). In the Big Apple. Communiqué. Riyadh, Saudi Arabia.
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