RIYADH: Saudi businessmen who own international restaurant franchises here in the Kingdom tend to double the actual prices of meals compared to the prices in their countries of origin.
Commenting on this phenomenon, Sulaiman Al-Samahi, chairman of the National Consumer Protection Association (CPA), said the high prices are totally unjustified and exaggerated.
“Entrepreneurs seek to make a quick buck without any consideration of the other factors involved. The Ministry of Commerce and Industry must intervene to control the varying prices of meals inside the Kingdom compared to their prices in the same restaurants and for the same products abroad,” said Al-Samahi.
He explained that one of the causes of the high prices is the existence of commercial concealment, by mandating the management operations to an expatriate who establishes the strategies and the general policy of the business in exchange for an annual amount given to the owner of the franchise.
“The manager of the business grabs the remaining profits which are sometimes double the annual earnings of the owner, leading to the increasing prices paid by the consumers,” he added.
He said that some entrepreneurs are not satisfied with a profit margin of 30 to 40 percent even though this yields good revenues in general, noting that the majority of businessmen owning franchises are not aware of the fact that if they accepted reasonable profit margins their businesses would actually flourish and demand would increase, leading to higher profits in the end, or the expansion of the business.
On the other hand, Amet Jan, director of operations at a restaurant franchise, said that the high prices are the result of importing all the components of the production operations from outside the Kingdom, including the meat used in some meals, adding that "the same prices paid here in the Kingdom are paid in similar restaurants in the Gulf states."
The other reasons for such high prices, he added, are the annual amounts paid as Zakat and the full time staff with monthly salaries, unlike the other countries around the world where workers can apply for part-time jobs and the management can cut down on the number of workers if profits drop. “In accordance with the Saudi labor laws we are required to pay monthly salaries regardless of the profit or loss margins,” he said.
An inspection tour made by the publication of a number of restaurant franchises found that clients believe that the poor control and supervision of the regulatory authorities have allowed the restaurants to inflate their prices. “I used to buy the same meal in the US for about SR37. Here in the Kingdom I was surprised to find that the price of the same meal amounts to SR75,” said Sultan Al-Obaid, a Saudi client at a restaurant.
Salem Al-Houaiti agrees with him, saying that the high prices paid in the Kingdom are unjustified.
Fast food restaurants in KSA overcharging customers
Fast food restaurants in KSA overcharging customers
Where We Are Going Today: Thaiya in Riyadh
RIYADH: Located on Riyadh’s Tahlia Street, Thaiya is one of the city’s newer Thai restaurants. With five-star reviews circulating on social media, we stopped by to see whether it lives up to the hype.
The menu is concise, focusing on Thai staples including tom yum soup, curries, pad Thai and mango sticky pudding.
For those starting with soup, the classic seafood tom yum is the better choice over the creamy version, which leaned too heavily on coconut cream and dulled the soup’s signature tang.
Among the starters, the shrimp dumplings stood out. Light, well-seasoned and neatly portioned, they worked well as a shared opening dish before the mains.
The mango avocado salad, however, was less successful. Heavy on raw onions and lacking textural contrast, it proved difficult to recommend.
For mains, the chicken satay was fairly standard and nothing to write home about. The fried rice emerged as a highlight, while the shrimp pad Thai was generously portioned and well-suited for sharing, with a noticeable amount of shrimp.
Presentation was polished and portions moderate. Overall, the food was solid but less flavorful than other established Thai restaurants in the city, particularly when compared to favorites such as Thai Soi and Phet-Phet.
Service was a strong point with staffers knowledgeable and attentive throughout the meal.
The atmosphere was warm and cozy, featuring dim lighting and quiet background music that made for a pleasant dining experience.
In terms of value, the prices are reasonable when compared to other Thai establishments in the area. But when the time comes to settle the tab, hold back on reaching for your wallet.
What truly sets this restaurant apart is a unique game of chance. One person per table can participate, with outcomes ranging from a complementary bill for double sixes to smaller perks such as free dessert or discounts on a future visit.
So, is Thaiya the best Thai restaurant in Riyadh? It shows promise, but greater consistency and bolder flavors would be needed to claim that title.
