JEDDAH: The popular Saudi fast food restaurant chain Al-Baik announced yesterday that it has reduced the prices of its main products due to a global decrease in the cost of raw materials.
Advertisements published in various local newspapers by Al-Baik read: “Based on its commitment to the nation and community it serves by providing the highest quality food, service and value to its customers, prices will be reduced on its main products.”
Prices of soya, petrol, chicken, cooking oil and paper/plastic packaging has gone down over the past few months leading to the reduction of the local fast food giant’s main products. No other chains have made any similar announcement so far and are maintaining their previously increased prices.
“Al-Baik’s competitors are expected to follow suit,” said Khaled Al-Harithy, head of the Hospitality Committee at Jeddah Chamber of Commerce and Industry. “Businesses need to start reducing their prices,” he added.
The prices of raw material are decreasing. Supply exceeds demand due to global financial crises. With less liquidity in the market demand on commodities decreased. Clearly visible in oil prices that have gone down to $50 a barrel from a record high of $147 a barrel in July, he added.
Inflation extracted its toll on the local market, resulting in an increase of the prices of raw materials, Al-Harithy said. “But, some businessmen have exaggerated global inflation to cash in and make more profits locally,” he added. He called on businesses to bring the prices down and to re-evaluate their pricing policy after a drop in inflation.
“On the other hand, I would like to emphasize the need for the Consumer Protection Committee to supervise wholesalers, as they are crucial in determining costs,” Al-Harithy said, adding that more regulations should be in place to protect the consumer.
— With input by Sultan Al-Tamimi
