Competitive Screening

Al Baik:

In September 1974, the late Shakkour AbuGhazalah renovated an old warehouse he was renting,
and opened the Iirst pressure Iried chicken restaurant in the Kingdom oI Saudi Arabia Al Baik is
a chain oI Iast Iood restaurants in Saudi Arabia that mainly sells broasted chicken and shrimp
with a variety oI sauce. The chain has 31 branches in Jeddah, along with 6 in Mecca, three in
Medina, one in TaiI and one in Yanbu. Al Baik competes with other international Iast Iood
chains such as KFC, and McDonald`s. It oIIers prices that are comparatively lower to the two
chains. Al Baik's meals generally cost about 30 percent less than at the international chains. Al
Baik continues to succeed in the western province, though it`s one oI the most diIIicult areas Ior
competition because oI the ease oI entrance, Al-Baik went through easily with it and Iormed a
new concept oI such a successIul trust worthy Saudi local business. Al-Baik has taken the market
share over KFC and the rest oI restaurants including Tazej and Popeye`s, and it`s spreading
rapidly in almost every district in Jeddah, along with couple oI branches in diIIerent cities in the
western province , such as TaiI , Madina and Makkah. ThereIore, such a business seems to be a
potential success in the area and it would need exactly nothing but some consideration we are
going to include in the next pages.
Strategic Planning and Positioning
One oI the reasons behind the success oI Al-Baik in the western region oI Saudi Arabia is the
nationality oI the business. Arabs in general started preIerring local or non American products
over American ones in a move to boycott American products gradually, especially when it comes
to Iood. But when Iranchising (Licensing) Al-Baik to Bahrain or Dubai, the nationality oI the
restaurant will change somewhat to another Arab nationality, which will not change the
consumers` perceptions or their buying behavior. The secrets oI Al-Baik Iormulas can be sold to
other Arab (Bahraini and Emirate) Iranchisors, which will extend the success and pay a decent
amount oI revenues using local better inputs in terms oI cost and eIIiciency in order to make the
highest possible margins with holding al-Baik`s value and quality Iixed.

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