It is time to talk about another local business success story; and how can we talk about successful organizations without talking about Al-Baik.
It is next to impossible that you are living in Jeddah or ever visited it without being to Al-Baik. The local fast food chain has been around since 1974. After 35 years by now, the restaurant is mainly operating in Jeddah with minimum number of branches in Makkah, Madinah, Yanbu and Taif. Arguably, Al-Baik possesses the highest market share and customer loyalty amongst its competitors especially in Jeddah; noting that when I say competitors, I mean international multibillion brands like McDonald’s, KFC, Pizza Hut etc …
Let’s shed some lights on Al-Baik main success recipes :
– The Quality & Price: for those of you familiar with the debate surrounding Porter’s Generic strategies, Al-Baik is a living proof that you could follow a strategy that combines both differentiation and cost leadership. Although there are a lot of restaurants serving fried chicken, the quality and taste of Al-Baik are certainly unique and its prices are way below the average.
– The Trustworthy Brand: Al-Baik has a very strong brand equity whether we are measuring it by evaluating the restaurants’ products or by studying its brand impact on customers. Al-Baik brand communicates strong messages of quality, fast service, trust, affordability, convenience, and social responsibility. Its management has been very smart emphasizing these values into the brand using different methods of advertisements, public relations, or even by spreading stories about the brand. The entrepreneurial story of its founder and how he struggled to raise his community awareness about eating outside the home which was strange back then and how he has been working alone in the restaurant preparing the food, serving it, and then cleaning the small shop are all meant to build some kind of connection with its customers. Also, some suspense and mystery would not hurt either; the secret chicken formula that is only known by few individuals is one of the most preferred stories amongst such food and beverages organizations (didn’t you hear similar stories about Coca-Cola, Pepsi, and KFC?)
– Superb Customer Service: whether we are talking about fast service, servicescape design, or cleanness of the restaurants environment; Al-Baik is providing exemplary services in all of that. Even more, Al-Baik is one of the few restaurants that introduced items to the menu based solely on customers’ suggestions.
– Convenient Locations: Al-Baik marketers are masters in choosing locations for their restaurants; I have never seen a branch of Al-Baik without it being packed with customers. The huge expansions they carried out in Jeddah have been built on population distribution analysis. That is why wherever you live in Jeddah now; there must be Al-Baik branch within your easy reach.
– Social Responsibility: Al-Baik has always been known for its socially related campaigns. They have a regular presence in Hajj seasons providing free meals to pilgrims and they are periodically campaigning for environmentally related causes like banning smoking in their restaurants or preserving the city clean image. Furthermore, their active participation in the aftermath of Jeddah floods by providing free meals to those devastated by the catastrophe is one shiny example of how organizations could be interacting with its society.
Nevertheless, staying on the top is not an easy job. Al-Baik management has to deal with many issues to facilitate its growth. One of these important issues is on the mind of every fan who happen to live outside Jeddah; how much should they expand? Should they consider opening new branches in other cities at the Kingdom? What about being multinational or even global?
Moreover, how Al-Baik should respond to the growing concerns raised by healthy and organic foods advocates (it is selling fried chicken, right!!)? And most importantly, how its managers are going to maintain its competitive advantages and how are they going to nurture its sustainability strategy?
Finally, the free spirit statement; this is to confirm that I do not know, or have any relation with anyone working at Al-Baik management or restaurants, and this post has not been influenced by Al-Baik or any of its partners in any way …
Read Full Post »