Burgerizzr to focus on current branches, expand in new cities: Chairman

Shatirah House Restaurant Co.'s (Burgerizzr)  Chairman Mohammad Al-Ruwaigh

Shatirah House Restaurant Co.'s (Burgerizzr) Chairman Mohammad Al-Ruwaigh said 2023 was not the year of expansion for the company, but rather the focus was on boosting the performance of current branches to provide better services and manage costs.

In an interview with Argaam, the top executive indicated that the company closed five branches and opened only two new ones in 2023 — the fewest number of openings in the past years. However, this is considered a base for the company and will greatly help it expand and open more branches this year, as it seeks to have a foothold in new cities besides existing ones, he added.

"The company posted robust financial results in 2023. What mattered to us is the uptrend in performance, which was achieved by increasing sales and, more importantly, reflected in profitability. This growth was driven by the focus on single-branch sales, cost management and raising branch efficiency," said the chairman.

Al-Ruwaigh also highlighted the fierce competition in the fast-food market and the related challenges, including the ease of market accessibility and the high costs of inputs and delivery applications, in addition to the modernization of some systems, which negatively affected profit margins. "This requires us to look for opportunities to save and raise margins, which is what we are seeking to do currently," he added.

He indicated that sales of delivery applications, including Burgerizzr mobile application, constitute more than 40% of the total, pointing out that it is an important but costly sales channel. Therefore, Burgerizzr seeks to utilize this tool while carefully reviewing costs to make its utilization inexpensive.

As for Burgerizzr’s transition to the main market (TASI), Al-Ruwaigh explained that the company submitted a request in the fourth quarter of 2023 but was then called for withdrawal to fulfill some requirements. The company is preparing to re-submit the file as soon as possible. He also said the transition will take place immediately after obtaining approval from Tadawul.

Furthermore, the company will continue to focus on single-branch sales in 2024. This is by providing a distinctive customer experience and adding new products, along with reactivating the expansion of the branches, according to the top executive.

He added that the diversification strategy is key for Burgerizzr in 2024. Accordingly, it will look for opportunities to enter into new fields to be supportive of its strategy and a new source of income, noting that this strategy may be long term, and this year is the beginning of pursuing it.